Published on: December 20, 2016

Clinical slowdown offsets strength elsewhere

Instem recently confirmed that its Instem Clinical business continues to be impacted by a slowdown in the early-phase clinical market and, despite other areas of Instem performing well, that this shortfall will impact group financial performance for 2016. Management is addressing the challenging clinical market conditions, and continues to expect revenue growth and a return to profitability for the Clinical business unit in FY 2017E. The group has also announced a renegotiation of the earn out arrangements. We reduce FY 2016E forecasts, but leave FY 2017E unchanged.

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