Announcement • Jan 25
Instem Enables Clients to Leverage ICH S1B Weight of Evidence Guideline Instem announced that its latest in silico solution offering known as Advance™ is providing clients with a technology-enabled approach for assessing carcinogenicity based on the ICH S1B Weight of Evidence (WoE) Addendum. The ICH S1B guideline has introduced a WoE approach to assess human carcinogenic potential of small molecule pharmaceuticals and determine whether a 2-year rat carcinogenicity study would add value. Application of this integrated analysis supports the 3Rs principles, while promoting safe and ethical development of new small molecule pharmaceuticals. In early 2022, in response to the directive, Instem established a collaborative cross-industry working group to develop a protocol that could support the carcinogenicity WoE integrated assessment in a transparent, consistent, and defendable manner.Since that time, Instem’s team of in silico experts have been instrumental in driving forward a solution to support the S1B guideline. In addition to leading the cross-industry working group, Instem has delivered numerous presentations, posters and workshops at key global industry conferences and events, as well as creating, developing, and delivering the Advance™ technology-enabled service in consultation with key industry stakeholders.The benefits of this revolutionary WoE approach are multi-fold. In addition to saving time, money and the need for animal experimentation, a literature and data-based reasoning provides scientists confidence in the experimental approach and prompt alerts to potential safety concerns. This ultimately enables pharmaceutical organizations to bring their life enhancing products to market faster.The Advance™ service is comprised of six areas, which mirror the six WoE factors. Instem can provide a full assessment of all six WoE factors, including database searches and in silico experimentation. Alternatively, a single WoE factor can be completed to complement an in-house workflow. As the compound progresses through the pipeline, and more data or information becomes available, the WoE assessment can be updated and refreshed in real time.Industry and regulators are increasingly recognizing the huge benefits of in silico approaches, which are driving forward this strong and sustained growth in the acceptance and adoption of alternative methods in drug discovery. The introduction of Advance™ has further enabled organizations to replace, reduce or refine their efforts within animal research. Announcement • Nov 22
ArchiMed SAS agreed completed the acquisition of Instem plc (AIM : INS) from group of sellers. ArchiMed SAS agreed to acquire Instem plc (AIM : INS) from group of sellers for approximately £190 million on August 30, 2023. Under the terms, will pay £8.33 per share in cash. Group of sellers include, Phil Reason, David Gare, Norma Gare, Nigel Goldsmith, Deborah Walker, Michael Garefor and others. Instem Directors intend to recommend unanimously that the Instem Shareholders vote in favour and is subject to approval of court and NSIA Condition. The cash consideration payable to the Instem Shareholders under the terms of the Acquisition is intended to be financed by indirect capital contributions to Bidco to be invested by (i) MED Platform II S.L.P. and (ii) MED Platform II B FPCI The Acquisition is currently expected to complete during the fourth quarter of 2023. As of October 5, 2023, Instem plc Board's unanimously recommends that Shareholders vote in favour of the Scheme at the Court Meeting and the Resolution to be proposed at the General Meeting on October 19, 2023. As on November 2, 2023, the majority of Instem Shareholders has approved the transaction. As of November 7, 2023, The boards of directors of Bidco and Instem are subsequently pleased to confirm that the NSIA Condition in the Scheme Document has been satisfied. As of November 16, 2023, The scheme was approved by Scheme Shareholders at the Court Meeting and that Instem Shareholders approved the Special Resolution relating to the implementation of the Scheme at the General Meeting. The Scheme remains conditional on the delivery to the Registrar of Companies of the Court Order made at the Sanction Hearing to sanction the Scheme. The Scheme is expected to become effective on November 20, 2023.
Alistair Allen, Julian Hudson and Tom Palmer of N.M. Rothschild & Sons Limited and Peter Steel, Alex Bond and Oliver Platts of Singer Capital Markets Advisory LLP acted as financial advisor. Moelis & Company UK LLP acted as financial advisor to ArchiMed. Latham & Watkins (London) LLP are retained as legal adviser to ARCHIMED and Bidco. Squire Patton Boggs (UK) LLP are retained as legal adviser to Instem. James Fletcher of Ashurst LLP acted as legal advisor to Moelis & Company UK LLP.
ArchiMed SAS agreed completed the acquisition of Instem plc (AIM : INS) from group of sellers on November 20, 2023. David Gare, Mike McGoun, Riaz Bandali and Mary Dolson have resigned as Non-Executive Directors of Instem as a result of scheme becoming effective. Announcement • Nov 09
Instem's Shares to Trading on AIM Expected to Be Cancelled on 21 November 2023 On 30 August 2023, the board of directors of Ichor Management Limited ("Bidco"), a newly incorporated company controlled by funds managed by ARCHIMED SAS, and the board of directors of Instem plc ("Instem") announced that they had reached agreement on the terms of a recommended cash offer by Bidco for the entire issued and to be issued share capital of Instem (the "Acquisition"). The Acquisition is being implemented by means of a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006 (the "Scheme"). On 2 November 2023, Instem announced that the Scheme was approved by the Scheme Shareholders at the Court Meeting held on that date and the Special Resolution relating to the implementation of the Scheme was approved by Instem Shareholders at the General Meeting also held on that date (the "Scheme Approval Announcement"). On the basis that the Scheme becomes Effective on 20 November 2023, the last day of dealings in, and for registration of transfers of, and disablement in CREST of, Instem Shares will be 17 November 2023, with all dealings in Instem Shares being suspended at 7.30 a.m. on 20 November 2023. At 7.00 a.m. on 21 November 2023, the admission of Instem Shares to trading on AIM is expected to be cancelled. New Risk • Sep 17
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 24% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (11% average weekly change). Minor Risk Large one-off items impacting financial results. Announcement • Sep 01
ArchiMed SAS agreed to acquire Instem plc (AIM : INS) from group of sellers for approximately £190 million. ArchiMed SAS agreed to acquire Instem plc (AIM : INS) from group of sellers for approximately £190 million on August 30, 2023. Under the terms, will pay £8.33 per share in cash. Group of sellers include, Phil Reason, David Gare, Norma Gare, Nigel Goldsmith, Deborah Walker, Michael Garefor and others. Instem Directors intend to recommend unanimously that the Instem Shareholders vote in favour and is subject to approval of court and NSIA Condition. The cash consideration payable to the Instem Shareholders under the terms of the Acquisition is intended to be financed by indirect capital contributions to Bidco to be invested by (i) MED Platform II S.L.P. and (ii) MED Platform II B FPCI The Acquisition is currently expected to complete during the fourth quarter of 2023. N.M. Rothschild & Sons Limited and Singer Capital Markets Advisory LLP acted as financial advisor. Moelis & Company UK LLP acted as financial advisor to ArchiMed. Latham & Watkins (London) LLP are retained as legal adviser to ARCHIMED and Bidco. Squire Patton Boggs (UK) LLP are retained as legal adviser to Instem. Board Change • Jun 12
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 4 non-independent directors. Independent Non-Executive Director Mary Dolson was the last independent director to join the board, commencing their role in 2023. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Jun 03
Instem plc, Annual General Meeting, Jun 27, 2023 Instem plc, Annual General Meeting, Jun 27, 2023, at 13:30 Coordinated Universal Time. Location: Instem plc 2 Diamond Way, Stone Business Park, Stone Staffordshire United Kingdom Announcement • May 26
Ennov SA acquired Samarind Ltd from Instem plc (AIM:INS). Ennov SA acquired Samarind Ltd from Instem plc (AIM:INS) on May 25, 2023.Ennov SA completed the acquisition of Samarind Ltd from Instem plc (AIM:INS) on May 25, 2023. Reported Earnings • May 16
Full year 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2022 results: EPS: UK£0.21 (up from UK£0.078 in FY 2021). Revenue: UK£58.9m (up 28% from FY 2021). Net income: UK£4.70m (up 180% from FY 2021). Profit margin: 8.0% (up from 3.6% in FY 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.3%. Earnings per share (EPS) exceeded analyst estimates by 11%. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 9.9% growth forecast for the Healthcare Services industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 64% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Announcement • Jan 10
Instem plc Announces Board and Committee Appointments Instem plc announced that it has appointed Mary Dolson as an Independent Non-Executive Director to the Board and Chair of the Audit Committee, effective 9 January 2023. Mary will also join the Remuneration and Nomination Committees immediately upon appointment. Mary is an expert advisor on regulatory, financial and accounting compliance issues, with extensive experience advising businesses in the pharmaceutical, biotech and life science sectors. She is a specialist and experienced advisor in taking companies through periods of change, from start-up to venture capital investments to public offerings. Most recently, Mary was a Non-Executive Director at Nuvelution Pharma Inc. (Boston, USA) between 2019 and 2021, where she consulted as an expert in finance, modelling, and risk across all phases of the pharmaceutical and biotech industry. Mary has spent most of her career in audit and served as a PwC partner in London for over 20 years, where she became the Global Lead on pharmaceutical industry accounting and reporting before retiring in 2018. Mary was a founding member of the 'Pharma Forum', an industry based International Financial Reporting Standards working group. Mary served as a Non-Executive Committee Member for the Financial Reporting Review Panel (UK), a position she held from 2011 until 31 December 2020 (when it was dissolved). In this role, Mary helped to guide the implementation of accounting standards, corporate governance, and other reporting codes. Mary is a Bachelor of Business Accounting graduate of Pace University, Lubin School of Business, New York, and a Certified Public Accountant (CPA) in the State of New York. Revised Board and Committee Membership. Effective with Mary's appointment, Board committee membership has been revised as follows: Audit Committee consists: Mary Dolson - chair, Riaz Bandali, Mike Mcgoun. Remuneration Committee consists: Riaz Bandali - Chair, Mary Dolson and Mike McGoun. Nomination Committee consists David Gare - Chair, Mary Dolson, Riaz Bandali and Mike McGoun. Committee membership will be reviewed periodically in line with good governance practice. Following completion of Mary's initial on-boarding process, David Sherwin (Non-executive Director) has indicated that he intends to retire from the Board, with a confirmatory announcement to be made at that time. The Company is also announced that John Alarcon has been appointed into a full-time employee position as Vice President of Strategic Partnerships and Vice President of US Finance. John joined Instem on a contract basis in 2019 and led the buy-side due diligence, modelling, and integration efforts on the d-Wise acquisition, and supported on those of The Edge and PDS Life Sciences. More recently he took responsibility as Interim Controller for Instem's Clinical Trial Acceleration business unit. John draws on over a decade's finance experience with VC backed technology companies and prior to joining Instem was running his own consulting practice. In his new role based in the US, John will head Instem's US Finance team and will report to Chief Financial Officer, Nigel Goldsmith. Recent Insider Transactions Derivative • Jan 08
CEO & Executive Director exercised options and sold UK£143k worth of stock On the 4th of January, Phil Reason exercised 23k options at a strike price of around UK£0.90 and sold these shares for an average price of UK£7.00 per share. This trade did not impact their existing holding. For the year to December 2016, Phil's total compensation was 73% salary and 27% non-salary. Since March 2022, Phil has owned 770.71k shares directly. Company insiders have collectively sold UK£590k more than they bought, via options and on-market transactions in the last 12 months. Price Target Changed • Nov 16
Price target increased to UK£10.10 Up from UK£2.12, the current price target is an average from 2 analysts. New target price is 49% above last closing price of UK£6.80. Stock is down 15% over the past year. The company is forecast to post earnings per share of UK£0.18 for next year compared to UK£0.078 last year. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 4 non-independent directors. Independent Non-Executive Director Riaz Bandali was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Nov 03
Instem Unveils New Additions to Its Leading Computational Toxicology Software Suite Instem announced that the latest edition of its powerful Leadscope Model Applier Computational Toxicology software solution has been released. This latest update includes new functionality to provide a more seamless experience when performing a Read-Across, as well as new and updated predictive models to support the increasing market need for in silico solutions. The new release will also be used as part of the recently introduced Predict™ technology-enabled service for nitrosamine carcinogenicity risk assessment. Core features of the 2022 software release include: NEW Read-Across Tool – a single and easy-to-use tool for searching analogs and performing read-across, while providing direct access to an extensive toxicology database. Leadscope Advanced™ Edition – includes advanced functionality and now available online, eliminating the need to invest in computer hardware and enabling quicker, easier access to new software updates. UPDATED Genetox Expert Alerts – The Leadscope Expert Alerts suite for bacterial mutagenicity, widely used for ICH M7 regulatory submissions, has been updated to enhance predictivity and interpretation. UPDATED Sensitization Models and Alerts - Updated models and alerts for the assessment of skin sensitization; including models to predict strong or extreme sensitizers formed on a growing database. NEW Acute Toxicity Predictive Models – New expert predictive models to predict acute lethality in dermal, oral and inhalation studies, based on research of over 175,000 chemicals with acute toxicity data. NEW Statistical Models and Expert Alerts to support the prediction of eye irritation and corrosion. NEW and UPDATED Statistical-Based Models to support the assessment of endocrine activity, drug permeability across the blood-brain barrier* (supporting abuse liability), and cardiac toxicity (developed by the US FDA under the Research Collaboration Agreement). Instem has developed a comprehensive program to help raise awareness of this important 2022 software release through on-demand demonstrations and presentations at key industry events including the ACT 43rd Annual Meeting, November 13th – 16th, Denver, Colorado. Reported Earnings • Sep 27
First half 2022 earnings released: EPS: UK£0.057 (vs UK£0.048 in 1H 2021) First half 2022 results: EPS: UK£0.057 (up from UK£0.048 in 1H 2021). Revenue: UK£27.6m (up 39% from 1H 2021). Net income: UK£1.29m (up 26% from 1H 2021). Profit margin: 4.7% (down from 5.2% in 1H 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 8.5% growth forecast for the Healthcare Services industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 34% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Announcement • Sep 27
Instem plc Announces Settlement of Historical Licence Dispute Instem plc announced that, following a German court hearing on 17 March 2022, full and final settlement has now been reached in respect of a one-off, historical contractual licence dispute dating back to 2017 with a former customer of Instem (the "Dispute"). The Dispute has no bearing on current operations. Instem has agreed to pay a EUR 1.48 million (approximately £1.3 million) settlement, of which its insurer has agreed to contribute EUR 0.45 million (approximately £0.4 million), (the "Settlement"). It was a negotiated settlement with the customer and is not an admission of fault on Instem's behalf. As previously announced, the Company had created a provision of £0.25 million in respect of the Dispute. Therefore, the net charge to the Group's FY22 P&L following this settlement will be approximately £0.64 million which will be accounted for as a non-recurring, exceptional item. The Settlement will result in a net cash outflow of approximately £0.9m that will be made during October. Announcement • Sep 13
Instem plc to Report First Half, 2022 Results on Sep 27, 2022 Instem plc announced that they will report first half, 2022 results on Sep 27, 2022 Announcement • May 17
Instem plc, Annual General Meeting, Jun 09, 2022 Instem plc, Annual General Meeting, Jun 09, 2022, at 13:00 Coordinated Universal Time. Location: Diamond Way, Stone Business Park, Stone Stafffordshire United Kingdom Announcement • May 12
European Medicines Agency Awards Research Grant to Instem Instem has been awarded a European Medicines Agency grant as part of an EMA-funded research project to better understand the mutagenicity of N-nitrosamines. Nitrosamines are a class of organic chemical compounds that humans may be exposed to by tobacco use or by consuming certain foods. N-nitrosamines have been categorized in the ICH M7 guideline as belonging to the “cohort of concern” group of high-potency mutagenic carcinogens. Some active pharmaceutical ingredients carry NAs as impurities from production and/or storage or may cause their formation in the gastrointestinal tract. As part of an industry and academic consortium of 9 beneficiaries, funded by EMA and led by Fraunhofer Institute for Toxicology and Experimental Medicine (ITEM), Instem is collaborating on a 2-year research project to further investigate the mutagenicity of different classes of NAs to distinguish highly potent from less potent carcinogens. Experts from Instem’s In Silico Solutions group will be participating in the project, and the Leadscope Model Applier computational toxicology software suite and toxicity and carcinogenicity databases will be used to help the consortium develop novel in silico test systems that will improve risk assessment and derive reference doses such as acceptable intake values. Announcement • May 05
Instem plc Receives European Medicines Agency Research Grant Instem plc announced that it has secured funding as part of a €2.5 million European Medicines Agency ("EMA") grant - with the Company receiving c.12.5% of funds invested by the EMA. As part of an industry and academic consortium of nine beneficiaries, funded by EMA and led by Fraunhofer Institute for Toxicology and Experimental Medicine (ITEM), Instem is collaborating on a two-year research project to further investigate the mutagenicity of different classes of N-nitrosamines ("NAs"). Humans may be exposed to this class of organic chemical compounds by consuming certain foods, or through tobacco use. Some active pharmaceutical ingredients also carry NAs as impurities from production and/or storage or may cause their formation in the gastrointestinal tract. Consequently, NA related risk has become a focus for pharmaceutical and other regulatory authorities around the world. The project will aim to distinguish highly potent from less potent carcinogens. Reported Earnings • Apr 27
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: UK£0.078 (down from UK£0.12 in FY 2020). Revenue: UK£46.0m (up 63% from FY 2020). Net income: UK£1.68m (down 26% from FY 2020). Profit margin: 3.6% (down from 8.1% in FY 2020). Revenue missed analyst estimates by 1.1%. Earnings per share (EPS) also missed analyst estimates by 11%. Over the next year, revenue is forecast to grow 33%, compared to a 90% growth forecast for the industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has increased by 26% per year, which means it is tracking significantly ahead of earnings growth. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 4 non-independent directors. Independent Non-Executive Director Riaz Bandali was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Apr 21
Instem plc to Report Fiscal Year 2021 Results on Apr 26, 2022 Instem plc announced that they will report fiscal year 2021 results on Apr 26, 2022 Valuation Update With 7 Day Price Move • Mar 07
Investor sentiment deteriorated over the past week After last week's 16% share price decline to UK£5.70, the stock trades at a forward P/E ratio of 34x. Average forward P/E is 28x in the Healthcare Services industry in Europe. Total returns to shareholders of 88% over the past three years. Recent Insider Transactions Derivative • Feb 05
CEO & Executive Director exercised options and sold UK£298k worth of stock On the 2nd of February, Phil Reason exercised options to acquire 40k shares at no cost and sold these for an average price of UK£7.45 per share. This trade did not impact their existing holding. For the year to December 2020, Phil's total compensation was 82% salary and 18% non-salary. Since June 2021, Phil has owned 730.71k shares directly. Company insiders have collectively sold UK£335k more than they bought, via options and on-market transactions in the last 12 months. Announcement • Jan 26
Instem plc Provides Revenue Guidance for the Year Ended 31 December 2021 Instem plc provides revenue guidance for the year ended 31 December 2021. For the year, the company expects Total Revenue of GBP 46.1 million against GBP 28.2 million reported a year ago. Announcement • Nov 22
Instem plc Announces the Release of the Latest Edition of Its Leadscope Model Applier Computational Toxicology Software Solution Instem plc announces the release of the latest edition of its Leadscope Model Applier computational toxicology software solution. This release includes a comprehensive package of new and updated models to meet the growing market demand for in silico solutions and is expected to create the following opportunities for Instem: New routes to market, Increased revenue streams, Strengthened in silico offering, Increased regulatory-backed solutions. The core software capabilities have been enhanced significantly, enabling clients to deploy a unique, highly-differentiated solution developed with considerable regulatory and industry collaboration. The new software brings compelling benefits; reducing the time to bring products to market, the risk of costly later stage R&D failure and use of animal experimentation. Reported Earnings • Sep 29
First half 2021 earnings released: EPS UK£0.048 (vs UK£0.095 in 1H 2020) The company reported a mediocre first half result with weaker earnings and profit margins, although revenues improved. First half 2021 results: Revenue: UK£19.8m (up 41% from 1H 2020). Net income: UK£1.02m (down 36% from 1H 2020). Profit margin: 5.2% (down from 11% in 1H 2020). Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 45% per year, which means it is well ahead of earnings. Announcement • Sep 03
Instem plc (AIM:INS) acquired PDS Pathology Data Systems Ltd. for CHF 14.2 million. Instem plc (AIM:INS) acquired PDS Pathology Data Systems Ltd. for CHF 14.2 million on September 1, 2021. The consideration will be satisfied by a combination of cash and ordinary shares in the company. The consideration comprises CHF 8.2 million payable to the sellers of PDS on completion of the acquisition, CHF 3 million of seller loan repayments, CHF 2 million to satisfy other net PDS liabilities and CHF 1 million of deferred consideration. The deferred consideration, to be satisfied in cash, payable to the Vendors on the 12-month anniversary of completion. The initial consideration is being satisfied by CHF 4.7 million in cash and CHF 3.5 million in new ordinary shares of 10 pence each in the company, equating to the issue of 359,157 shares at a deemed price of a 777 pence per share. The Vendors will be subject to lock-in agreements, precluding them from selling 179,579 of their consideration shares prior to the 9-month anniversary of completion of the acquisition and the remaining 179,578 for a further 9 months. The cash payment, loan repayments and other net liabilities payments are being funded from the Group's existing financial resources. All of the PDS executives and employees will continue to be employed by the Group following the acquisition. Chief Executive Officer of PDS Vicente Nogués is retiring. In the year ended December 2020, PDS had profits before tax of CHF 0.75 million on sales of CHF 6.5 million. As at December 2020, PDS had net liabilities of CHF 1.5 million. Peter Steel, Alex Bond, and Rachel Hayes of Singer Capital Markets acted as financial advisors to Instem plc.
Instem plc (AIM:INS) completed the acquisition of PDS Pathology Data Systems Ltd. on September 1, 2021. Announcement • Sep 02
Instem plc (AIM:INS) acquired PDS Pathology Data Systems Ltd for CHF 14.2 million. Instem plc (AIM:INS) acquired PDS Pathology Data Systems Ltd for CHF 14.2 million on September 1, 2021. Under the terms, initial consideration is being satisfied by CHF 4.7 million in cash (c. £3.8m) and CHF 3.5 million (c. £2.8m) in new ordinary shares, deferred consideration, to be satisfied in cash, comprises CHF 1 million payable to the vendors on the 12-month anniversary of completion and CHF 3.0 million of seller loan repayments CHF 2.0 million to satisfy other net PDS liabilities. For the year ended December 31, 2020, PDS had unaudited, normalised profits before tax of CHF 0.75 million (c. £0.6 million) on sales of CHF 6.5 million (c. £5.1 million), of which CHF 2.3 million (c. £1.8 million) and net liabilities of CHF 1.5 million (c. £1.2m), including loans from its shareholders of approximately CHF 3.0 million (c. £2.4m). Instem will fully integrate approximately 35 additional PDS staff into its operations and expects to retain all of the combined workforce. The Acquisition is expected to be immediately earnings enhancing. Peter Steel, Alex Bond and Rachel Hayes of SCM Securities Limited acted as financial advisor to Instem plc.
Instem plc (AIM:INS) completed the acquisition of PDS Pathology Data Systems Ltd on September 1, 2021. Reported Earnings • Apr 14
Full year 2020 earnings released: EPS UK£0.12 (vs UK£0.057 loss in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: UK£28.2m (up 9.7% from FY 2019). Net income: UK£2.27m (up UK£3.20m from FY 2019). Profit margin: 8.1% (up from net loss in FY 2019). The move to profitability was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has increased by 31% per year, which means it is well ahead of earnings. Announcement • Mar 03
Instem plc (AIM:INS) acquired The Edge Software Consultancy Ltd. for £8.5 million. Instem plc (AIM:INS) acquired The Edge Software Consultancy Ltd. for £8.5 million on March 1, 2021. As per terms of transaction, The consideration comprises £6.0m payable on completion of the acquisition, £0.5m of deferred consideration and up to a further £2.0m which is payable contingent upon the future financial performance of The Edge. Consideration is being satisfied by £4.0m in cash and £2.0m in new ordinary shares, equating to the issue of 391,920 shares at a deemed price of approximately 510.3 pence per share. The deferred consideration, to be satisfied in cash, comprises £0.5m payable to the Vendors on the 12-month anniversary of completion. The earn out comprises up to £2.0m payable in cash. The cash payment is being funded from the group's existing financial resources. As on July 31, 2020, The Edge reported sale of £2.7 million and net assets of approximately £2.4 million. Peter Steel, Alex Bond and Rachel Hayes of Nplus1 Singer Advisory LLP acted as financial advisor to Instem plc. The Acquisition is expected to be earnings enhancing in 2021.
Instem plc (AIM:INS) completed the acquisition of The Edge Software Consultancy Ltd. on March 1, 2021. Is New 90 Day High Low • Feb 19
New 90-day high: UK£5.20 The company is up 20% from its price of UK£4.35 on 20 November 2020. The British market is up 6.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Healthcare Services industry, which is up 10.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is UK£3.03 per share. Is New 90 Day High Low • Jan 04
New 90-day high: UK£5.08 The company is up 4.0% from its price of UK£4.86 on 06 October 2020. The British market is up 10.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Healthcare Services industry, which is up 20% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is UK£4.58 per share. Announcement • Dec 16
Instem plc Provides New Business Update Instem plc announced that it has been awarded new business worth c.£2.2 million by one of its key clients, incorporating additional software licencing, annual support and funded product development revenue streams. This further strengthens this long-standing relationship, the value bring to one another and the resulting benefits to the wider life sciences research and development market. Approximately 35% of the total order value will be recognized in 2020, with the remainder being recognized in 2021. Furthermore, annual recurring revenue generated by the client is expected to increase by approximately £0.5 million, providing future revenue visibility, already a significant strength of the Company's business model. The additional contracts include the expansion of the client's Provantis® user base, by over 25%, reflecting the continuing growth in non-clinical research development. Instem will also provide the client with SEND (the Standard for the Exchange of Non-clinical Data) staff augmentation support, which will act as an extension of their staff to help address growing future demand (and backlog) for SEND study services. Among other things, the funded product development work will involve Provantis integration with a leading, third party digital pathology solution, offering the potential for significant future productivity enhancement and facilitating the work of an increasingly distributed pathologist community. Announcement • Dec 11
Instem Launches in Silico Toxicology Service Instem announced that it has launched the Predict™ In Silico Toxicology service. Predict™ is a leading edge, technology-enabled service that delivers a combination of powerful computation models with expert scientific review, to help clients predict chemical safety more quickly, efficiently and comprehensively. The new service leverages Instem’s expertise in delivering technology-enabled services with computational solutions developed by Leadscope, an Instem company, who are leaders in the area of In Silico Toxicology. Known for their advanced informatics and prediction technology, together with comprehensive database solutions, Leadscope helps organizations around the world effectively unlock valuable knowledge contained in both public and proprietary sources of research data. Clients searching Leadscope’s toxicity databases can access well over 500,000 toxicology studies for more than 200,000 chemicals, enabling fast, accurate, defendable and regulatory-accepted predictions. Is New 90 Day High Low • Nov 10
New 90-day low: UK£4.40 The company is down 14% from its price of UK£5.10 on 11 August 2020. The British market is up 1.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Healthcare Services industry, which is down 1.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is UK£3.82 per share. Reported Earnings • Sep 29
First half earnings released Over the last 12 months the company has reported total profits of UK£339.0k, down 81% from the prior year. Total revenue was UK£28.1m over the last 12 months, up 18% from the prior year. Announcement • Jul 18
Instem plc has completed a Follow-on Equity Offering in the amount of £15.750002 million. Instem plc has completed a Follow-on Equity Offering in the amount of £15.750002 million.
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 3,620,690
Price\Range: £4.35
Transaction Features: Regulation S; Rule 144A; Subsequent Direct Listing 
