Simulations Plus, Inc. SLP has streamlined its business unit and leadership structure to foster growth after recent acquisitions. These updates will be implemented on Aug 30, 2024.
Over the past year, Simulations Plus made two major acquisitions, including the largest in its corporate history. In June 2024, the company acquired Pro-ficiency Holdings, Inc. and its subsidiaries from QHP Capital and its minority shareholders for about $100 million, expanding its footprint across the drug development continuum, from pre-clinical protocols to product commercialization. This acquisition doubled Simulations Plus’ addressable market by adding $4 billion in revenue opportunities within the clinical simulations training, analytics and medical communications sectors.
Building on this recent acquisition, Simulations Plus is focusing on optimizing its resources and people. The company is establishing two new business units — Adaptive Learning & Insights and Medical Communications — to improve client engagement. Additionally, the Regulatory Strategies unit will transition into a Regulatory Strategies Center of Excellence to enhance sales visibility and accelerate cross-selling opportunities.
These strategic moves aim to strengthen Simulations Plus’ position across the drug development continuum, driving growth and profitability, the company added.
Simulations Plus announced key leadership promotions. Steven Chang is elevated to president of Quantitative Systems Pharmacology following his arrival with the Immunetrics acquisition in June 2023. Jenna Rouse will lead the new Adaptive Learning & Insights unit as president, having served as chief markets officer, Clinical, at Pro-ficiency. Murry Alper will become president of the new Medical Communications unit, also joining through the Pro-ficiency acquisition.
Simulations Plus, Inc. Price and Consensus
Simulations Plus, Inc. price-consensus-chart | Simulations Plus, Inc. Quote
The company further announced the departure of Brett Howell, president of Quantitative Systems Pharmacology, and Michael Raymer, president of Clinical Simulations & Medical Communications, who will leave after aiding in the transition.
Simulations Plus is a leading-edge developer of simulation software for pharmaceutical, chemical and biotechnology companies across the globe. The simulation software is used for drug discovery, development, research and regulatory submissions.
In the third quarter of fiscal 2024, the company’s revenues increased 14% year over year to $18.5 million, primarily due to higher software revenues in the Clinical Pharmacology & Pharmacometrics and Cheminformatics business units.
However, sales of the PBPK unit, part of the services segment, were down 10% as the temporary delays in acquiring client source data deferred the initiation of contracted projects. SLP has also opted to discontinue the quarterly cash dividend and redirect these funds towards growth initiatives to boost long-term shareholder value.
Currently, Simulations Plus carries a Zacks Rank #4 (Sell). Shares of the company have lost 19.4% compared with the sub-industry’s growth of 24.7%.
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