Instem strikes five-year agreement with global CRO

IT solutions provider Instem has struck a five-year agreement with a global contract research organisation worth over $12.0m that will see the group support over 2,000 users worldwide in the client's clinical trial analysis.

Instem stated the initial five-year agreement includes a one-time implementation project worth approximately $3.0m, with revenues to be recognised during 2022 and 2023, and recurring software-as-a-service subscription revenues worth at least $2.25m per annum over a four-year period.

The AIM-listed group said Aspire-related software-as-a-service revenue will provide "increased visibility and higher margin returns" compared to previous, custom statistical computing environment implementations.

Instem highlighted that the contract was "the largest ever received" by the group and would help to underpin management expectations for both the current and future years.

As of 1015 BST, Instem shares were up 7.20% at 670.0p.

Reporting by Iain Gilbert at Sharecast.com