Shares in Instem leapt by a third on Thursday after the software provider revealed that the National Institute of Environmental Health Sciences (NIEHS) has purchased its Provantis 9 preclinical software suite via SaaS [Software-as-a-Service] to support National Toxicology Programme (NTP) studies.

The value of the award to Instem, funded completely by the US government, is approximately $870,000 in the first year, with potential to extend and expand the agreement up to a further nine years, giving a possible total contract value for all 10 years of between $6.2m and $7.6m.

The contract also includes the ability to expand to a larger number of additional sites on the same terms, which could result in a further material increase in revenue, Instem reported.

The NTP is an inter-agency programme designed to coordinate toxicology research and development across the United states Department of Health and Human Services.

The NTP is managed by the NIEHS and supported by the US Food and Drug Administration and the Centers for Disease Control and Prevention.

Phil Reason, Chief Executive Officer of Instem, said: "Such a significant contract with the US government, won through a competitive tendering process, is not only a fantastic endorsement of Instem's innovative software but also of our strategy to support collaborative working practices.

"Our SaaS delivery model enables the sharing of the software between dispersed communities from multiple organisations. The accessibility of Provantis data will also enable the NIEHS to meet a key goal of combining study information with a broader set of biology information to improve scientific insights.

Instem is a supplier of IT applications to the early development healthcare market.

Its share price was up 33.33% to 130p at 12:05 on Thursday.
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