Instem, the AIM-listed provider of IT applications to the early development healthcare market, saw its shares tick upwards following the announcement of a new contract in the US. The firm will provide its Provantis 9 preclinical software suite via SaaS to support National Toxicology Program studies. The contract is funded by the US Government.
According to Instem, the deal will be worth $870k in the first year - which in the context of half-year revenues of £4.8m is a notable sum. There is potential to extend the agreement by a further nine years, and in total the contract could be worth between $6.2m and $7.6m over a ten year period.
The deal brought a welcome boost to Instem’s share price when it was announced on Thursday of last week. During the past twelve months the company’s share price has dropped as low as 81p, but was this morning trading at 128p having tipped over 140p on the day of the announcement.