10th Nov 2014 09:35
LONDON (Alliance News) - Instem PLC Monday said it has won six new contracts worth more than USD1 million compbined for its Centrus-submit products so far in the second half of 2014, but these are separate agreements to the "high value" potential deals it recently flagged as key to its full-year performance.
In a statement, the healthcare market IT products provider said its submit products have been selected by three preclinical contract research organisations, two Fortune 500 healthcare companies and it has won a four-year contract for the products from an independent university-based contract research organisation.
"We are witnessing increasing sales of submit and the product suite is also creating a number of cross-selling opportunities for our other offerings. While currently commanding the emerging SEND solution market with 30 licensed sites, we believe this represents less than 5% of the total addressable market once it is fully developed," Chief Executive Phil Reason said.
"As awareness increases amongstorganisations that the FDA is seeking to mandate SEND for future studies, Instem is well situated to further accelerate its leading market position," he added.
Back in September, Instem saw its shares plunge after it warned that if it was unable to secure key contracts by the year end it may have a "material impact" on its full-year results. Instem said that whilst it has "sufficient well-qualified contract opportunities" in its fourth quarter to meet full-year expectations, there is some uncertainty around the anticipated receipt of a small number of high value contracts, which could hit results.
"Although these (submit) contracts help to underpin our financial expectations, they are not the high value contracts referred to in our interim results statement in September. These remain in discussion and will be subject to separate announcement if and when concluded," Instem said in its statement Monday.
Instem shares were up 0.1% to 141.10 pence Monday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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