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Tech Capital
EPIC: INS
Market: AIM
52-week High/Low: 313.21p / 155.00p
Sector: Software & Computer Services
Market Cap: 25.18M

Instem provides advanced and best-in-class IT solutions and services to the global health and life sciences community, which help to bring life-changing products to market faster.

Instem Plc

www.instem-lss.com

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Big picture - Why invest in Instem Plc

Instem Plc Snapshot

Strategy

Instem has a growing stream of high margin, annuity-style revenues and has been investing in a number of organic growth initiatives that have contributed to the acceleration of its growth trajectory over the last several years. An example is the group’s leadership in the preclinical standards market, specifically the FDA’s adopted Standard for Exchange of Nonclinical Data, also known as SEND. Through the introduction of its platform of software and services, more than 45 client sites across 15 countries have adopted Instem’s submit™ solution, more than all competing vendors combined. Instem has attracted many new and first-time clients, but has also enabled the group to generate additional revenues from its existing Provantis users.

The Group is ideally placed to continue advancement of its mission to create a more connected ecosystem in the life sciences by consolidating a fragmented vendor marketplace. Potential acquisition targets include direct competitors, related technology and outsourced service providers in the areas of workflow/study management, data acquisition and analysis, modelling/predictive technologies, regulatory management and administrative solutions.

Since 2011 the Group has acquired 5 businesses – BioWisdom, Logos Technologies, Perceptive Instruments, Samarind Ltd and NOTOCORD. Such acquisitions consolidate the Group’s market position, complement its existing products, provide access to adjacent markets and increase efficiencies in the vertical supply chain.

As these companies integrate into the Instem group, the combined efficiencies and capabilities have allowed the group to become a uniquely positioned vendor for its clients.

As clients experience many challenges including patent expiry, soaring costs, heightened competition, squeezed margins and mounting regulatory pressures, Instem stands as their trusted advisor across a wider area of application.

Solutions Overview

Instem solutions and technology-enabled outsourced services help pharmaceutical, biotech, chemical and medical device organisations create safer, more effective products. Throughout research & development from late discovery through Phase IIa clinical evaluations, clients use our solutions to collect, analyse, report and submit quality data to agencies such as the US Food and Drug Administration, while helping them maintain regulatory compliance for their products in markets all around the world. Instem solutions are also enabling clients to identify and reveal new insight from their data, which reduces development timelines and costs, resulting in the generation of significant patent-protected revenue.

Instem Solutions across the R&D Lifecycle

 

In a highly fragmented life science IT marketplace, Instem is one of very few organisations that have clearly developed the financial strength necessary to maintain global leadership with established products, while introducing new regulatory compliant solutions that are delivering the step change in productivity that clients are aggressively pursuing.

We deliver value through a broad yet cohesive spectrum of software products, solution services and scientific consulting organised in the following areas:

Click on the boxes below to find out more about our solutions in each of these areas.


 

David Gare, Non-executive Chairman

David was a founder member of the Company’s former parent, Instem Limited and led the resulting businesses through most of their history. David successfully achieved a succession of strategic developments for Instem Limited, including its sale to Kratos Inc. in 1976, its MBO in 1983, its flotation on the USM in 1984, its flotation on the Official List in 1996, its public to private and demerger in 1998 and the buyout of Instem LSS Limited from Alchemy Partners in 2002. Throughout, David has concentrated on value creation through achievement of a strong market position.


Phil Reason, Chief Executive Officer

Phil is an experienced chief executive who has developed a number of IT businesses in the life sciences and nuclear industries, both organically and through acquisition. Phil joined the former parent Company, Instem Limited in 1982 and was appointed Managing Director of the Life Sciences division in 1995 and Chief Executive Officer of Instem LSS Limited on the demerger from Instem Limited. Given the importance of the North American market to Instem’s organic and acquisitive growth, Phil relocated from the UK to the US in 2003 and established a new headquarters in the Philadelphia area. Phil previously ran Instem Limited’s Nuclear and Laboratory Information Management Systems integration businesses.


Nigel Goldsmith, Chief Financial Officer

Nigel, who joined Instem in November 2011, has a wealth of experience in senior financial roles, at both public and private companies within the pharmaceutical industry. After qualifying as a Chartered Accountant, Nigel spent over nine years at KPMG prior to moving into industry. Nigel was Finance Director for three years at AIM listed, pharmaceutical and medical devices company, IS Pharma plc. He also spent a seven-year tenure as CFO at Almedica International Inc, a privately held supplier of clinical trial materials to the pharmaceutical and biotech industry in Europe and the US and two years as European Controller for the sales and marketing division of laboratory equipment manufacturer, Life Sciences International plc.


David Sherwin, Non-executive Director

David is a qualified Management Accountant and holds an MBA from Staffordshire University. He joined Instem Limited as a trainee accountant in 1973 and was appointed Chief Financial Officer in 1979. He has worked closely with David Gare on all of the subsequent transactions involving Instem Limited and Instem LSS Limited including participating in the management buyout of Instem Limited in 1983, the flotation on the USM in 1984, the flotation on the Official List in 1996 and the demerger of the business in 1998.


Mike McGoun, Non-executive Director

Mike has a wealth of management experience within the IT industry. He spent 10 years at IBM prior to co-founding a successful ComputerLand franchise in 1984. In 1994, Mike moved to SkillsGroup plc as a main board director, with responsibility for corporate development and later as a non-executive director. Mike was founder and non-executive Chairman of Tikit Group plc prior to its disposal to BT plc in 2012.

The Company has been notified, in accordance with the Disclosure and Transparency Rules, of the following disclosable shareholdings representing 3% or more of the voting rights in the Company's issued share capital:

Number of shares in issue: 15,776,552 Ordinary Shares in Issue, as at 15 May 2017

Shareholder Name (*Director) Amount % Holding
Lombard Odier 3,966,053 25.1%
Liontrust Asset Management Plc 1,566,462 9.9%
David Gare* 1,418,427 9.0%
David Sherwin* 1,380,066 8.8%
Hargreave Hale 900,623 5.7%
Alto Invest 823,692 5.2%
Adrian Gare 794,219 5.0%
Deborah Walker 794,219 5.0%
Phil Reason* 665,287 4.2%
Legal & General 617,769 3.9%
Close Brothers Asset Management 589,860 3.7%
Artemis Investment Management LLP 571,429 3.6%
Unicorn Asset Management Ltd 562,957 3.6%

 

Instem plc Registered Office

Diamond Way
Stone Business Park
Stone
Staffordshire
ST15 0SD
United Kingdom

Registered in England & Wales No. 07148099
Country of incorporation: England

 

UK Headquarters

Tel: +44 (0) 1785 825600

US Headquarters

Tel: +1 610.941.0990

Financial Advisor, NOMAD and Broker N+1 Singer
One Bartholomew Lane
London
EC2N 2AX

Lawyers Squire Patton Boggs (UK) LLP
Trinity Court
16 John Dalton Street
Manchester
M60 8HS

Reporting Accountants RSM Corporate Finance LLP
3 Hardman Street
Manchester
M3 3HF

Auditors RSM UK Audit LLP
3 Hardman Street
Manchester
M3 3HF

Registrars Computershare Investor Services PLC
Bridgwater Road
Bristol
BS13 8AE

Financial PR Walbrook PR Limited
4 Lombard Street
London
EC3V 9HD

Banker National Westminster Bank Plc
1 Spinningfields Square
Deansgate
Manchester
M3 3AP

Instem Plc Timeline

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