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Demand for Instem’s SEND platform is soaring

In a January update, Instem said trading had been in-line with expectations, helped by a 500% rise in orders for its SEND platform
scientist in laboratory
Instem develops software that aids the regulatory submission process for drug makers
  • Makes software that helps drug developers bring their products to market

  • Some huge firms use its technology

  • Profitable in first-half

  • Latest update showed 500% rise in SEND orders


What it does

Instem PLC (LON:INS) develops and sells software that aids data collection and the regulatory submission process for drug makers.

In short, its tech helps its customers to bring their products to market faster.

The AIM owns more than a dozen software applications, including its flagship SEND technology.

SEND stands for Standard for the Exchange of Nonclinical Data and is a protocol set up by the US Food and Drug Administration. It ensures that companies present data in a consistent format.

Among Instem’s other top products is Samarind – a software-as-a-service (SaaS) platform that enables companies to register and track their regulated products worldwide by maintaining a single integrated database, which is then used to update drugs watchdogs as products change over time.

The company, which is valued at £50mln, has over 500 clients, including some of the world’s biggest pharmas. Last summer, for example, an unnamed Fortune 500 giant signed a deal worth US$750,000 to use Samarind.


How it’s doing

Instem hasn’t released its full-year numbers for 2018 yet, but investors were treated to a nice trading update in January.

In that announcement, the company said trading had been in-line with expectations as orders for its SEND platform grew 500% year-over-year.

It added that all three areas of the business – data collection, regulatory solutions and informatics – made “positive contributions”, while profit margins also strengthened.

Customers are now shifting away from the software licence model to recurring, SaaS, which aids customer retention and allows users to incrementally build the list of services they buy.

Instem ended the year with £3.6mln in the bank, which will increase as delayed payments from a small number of large pharma customers are received.

This, the firm said, will return the company to “more normal working capital cycles”.


What the boss says

“Instem has invested significantly in the business in recent years and these results further illustrate such investment converting into profitable growth,” said chief executive Phil Reason.

“In addition to a host of new client wins, many existing clients have extended their use of Instem's products and services and, importantly, have transitioned to our SaaS solutions.

“The company looks forward to building on this momentum, particularly for SEND related services, where order backlog and future revenue visibility is continually improving.”

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