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Instem PLC on Friday announced it secured a five-year agreement worth over $12 million with an unnamed contract research organisation to support 2,000 users in clinical trial analysis.
This is the largest contract ever received by life science software firm Instem, which it said will help underpin management expectations for current and future years.
Shares in the firm were up 7.2% at 670.00 pence on Friday morning in London.
Under the agreement, the client will adopt Instem's Aspire software solution. Instem explained that Aspire-related software-as-a-service revenue will provide increased visibility and higher margin returns for the company.
The agreement includes a one-time implementation project worth around $3 million, with revenue to be recognised during 2022 and 2023, Instem explained.
It also includes recurring software-as-a-service subscription revenues which are worth at least $2.3 million annually for four years. This revenue is due to be recognised from the third quarter of 2023.
Chief Executive Phil Reason said: ‘This agreement underlines the advantages of our long-term acquisition strategy in broadening our market reach, technological capabilities and client list while providing opportunities to introduce compelling new SaaS solutions that advance our mission to help to radically reduce the cost and time of drug development.’
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