Acquisition doubles the Company’s TAM to $8
billion
Expected to be accretive to fiscal 2025 EPS
Conference call at 5:00PM ET to discuss
transaction
Simulations Plus, Inc. (Nasdaq: SLP) (“Simulations Plus”), a
leading provider of modeling and simulation software and services
for pharmaceutical safety and efficacy, today announced the
acquisition of Pro-ficiency Holdings, Inc. and its subsidiaries
(“Pro-ficiency”), a leader in providing simulation-enabled
performance and intelligence solutions for clinical and commercial
drug development. Simulations Plus acquired Pro-ficiency from QHP
Capital, L.P. (management company for NovaQuest Private Equity)
(“QHP Capital”) and Pro-ficiency’s minority shareholders for
approximately $100 million in cash.
The transaction expands Simulations Plus’ presence across the
drug development continuum from establishing pre-clinical protocols
to product commercialization, providing pharmaceutical and biotech
companies with an end-to-end offering that now includes clinical
trial operations, medical affairs and commercial market launches.
Pro-ficiency’s suite of software and services, developed with AI
technologies, is a highly complementary and synergistic addition to
Simulations Plus’ platform by expanding its capabilities to enhance
clinical trial and launch training, data analytics and
outcomes.
"We are thrilled to announce the expansion of our suite of drug
discovery and R&D solutions with this strategic acquisition of
Pro-ficiency,” said Shawn O’Connor, Chief Executive Officer of
Simulations Plus. “This transaction brings together two businesses,
each with complementary expertise and services that are grounded in
science and focused on applying advanced technologies like AI to
enhance actionable data analytics. Together, we will continue to
assist our clients in improving their drug development return on
investment and patient care delivery. With the integration of
Pro-ficiency’s immersive simulation-enabled learning, data-driven
insights, and medical communications platforms, we are
approximately doubling our total addressable market by unlocking
the significant growth potential of a $4 billion market
opportunity, which is incremental to our $4 billion biosimulation
market.
“This acquisition not only deepens our client engagement
capabilities and relationships but also presents meaningful
cross-selling opportunities to our shared customer base in life
sciences. By further expanding our portfolio of critical solutions
for efficacious and cost-efficient drug development and
commercialization, we believe this acquisition gives us a distinct
competitive advantage and will significantly enhance our ability to
drive innovation and success within the sector. Furthermore, the
transaction is expected to be accretive to our fiscal 2025 EPS,”
concluded O’Connor.
Michael Raymer, Chief Executive Officer of Proficiency, added,
“We are excited to join the Simulations Plus team, which has a
well-established and recognized leadership position in modeling and
simulations within the pharmaceutical and biotech community. Both
teams approached this transaction with a growth mentality. We look
forward to leveraging Simulations Plus’ specialized offerings and
business development infrastructure to expand our combined market
reach. Finally, our operations are complementary, our cultures are
aligned, and together we believe we can elevate the performance of
our mutual clients as well as attract new ones with our end-to-end
solutions.”
QHP Capital made its original investment in Pro-ficiency in
2021. Pro-ficiency completed the acquisitions of Fugitive Labs, LLC
in 2022 and Compass Group Partners in 2023. “We are very pleased
with the growth and innovation we have seen these past few years at
Pro-ficiency and we are excited to see them continue to improve
clinical development as part of the Simulations Plus offering,"
said Michael Sorensen, Partner at QHP Capital.
Strategic Rationale
- Expands Simulations Plus’ presence along the drug development
value chain, leveraging its scientific skills, drug development
expertise, data management acumen, predictive analytics and
biosimulations capabilities
- Broadens and differentiates Simulations Plus’ holistic offering
to include clinical trial operations, medical affairs, and
communications, strengthening its overall value proposition to life
sciences customers
- Doubles total addressable market (TAM), adding $4 billion of
clinical simulations training, analytics and medical
communications
- Provides meaningful cross-selling opportunities to a shared
target customer base in life sciences
- Broadens Simulations Plus’ platform and accelerates scale,
increasing aperture for continued M&A strategy and improving
right-to-win as a strategic partner of choice
Key Terms of the Transaction
The transaction is being funded from existing cash and
investment resources. “With approximately $119 million in cash and
investments available, this acquisition allows us to utilize the
capital from our August 2020 follow-on public offering,” said Will
Frederick, Chief Financial Officer and Chief Operating Officer of
Simulations Plus. “Following the acquisition, we remain
well-capitalized with no debt, have strong free cash flow, and will
continue our capital allocation strategy and corporate development
initiative to seek additional opportunities for strategic
acquisitions, investments, and partnerships.”
Additional information about the transaction, including a copy
of the purchase agreement and an investor presentation will be
provided in a Current Report on Form 8-K to be filed by Simulations
Plus today with the U.S. Securities and Exchange Commission and
will be available at www.sec.gov.
Procopio acted as legal counsel for Simulations Plus and Wyrick
Robbins acted as legal counsel for Pro-ficiency and the sellers of
Pro-ficiency.
Webcast and Conference Call Details
Shawn O’Connor, Chief Executive Officer of Simulations Plus;
Will Frederick, Chief Financial Officer and Chief Operating Officer
of Simulations Plus; and Michael Raymer, Chief Executive Officer of
Pro-ficiency, will host a conference call and webcast today at 5
p.m. Eastern Time to discuss the details of the transaction and to
answer questions. The call may be accessed by calling
1-877-451-6152 (domestic) or 1-201-389-0879 (international) or by
clicking on this Call me™ link to request a return call. The
webcast will be available on our website under Conference Calls
& Presentations. A replay of the webcast will be available on
the website approximately one hour following the call.
About Simulations Plus, Inc.
Serving clients worldwide for more than 25 years, Simulations
Plus is a leading provider in the biosimulation market providing
software and consulting services supporting drug discovery,
development, research, and regulatory submissions. We offer
solutions that bridge machine learning, physiologically based
pharmacokinetics, quantitative systems pharmacology/toxicology, and
population PK/PD modeling approaches. Our technology is licensed
and applied by major pharmaceutical, biotechnology, and regulatory
agencies worldwide. For more information, visit our website at
www.simulations-plus.com. Follow us on LinkedIn | X | YouTube.
Environmental, Social, and Governance (ESG)
We focus our Environmental, Social, and Governance (ESG) efforts
where we can have the most positive impact. To learn more about our
latest initiatives and priorities, please visit our website to read
our 2023 ESG update.
About Pro-ficiency
Based in Raleigh, NC, Pro-ficiency is a leading provider of
simulation-based learning, intelligence and compliance solutions
for life sciences. The company provides a comprehensive suite of
services, anchored by their innovation in customized, virtual
simulations, market intelligence and compliance resources, and
real-time data & predictive analytics. Combined with AI-based
engagement tools and professional production video capabilities,
Pro-ficiency achieves improved intelligence for learners and
critical risk and market intelligence for leaders. Learn more at
pro-ficiency.com.
About QHP Capital
QHP Capital is an investor in technology and services companies
in the life sciences and healthcare sectors. QHP Capital spun out
of NovaQuest Capital Management, which was formed in 2000 with the
vision of building an investment platform to provide strategic
capital and industry expertise in partnership with strong
management teams. The investment team consists of seasoned
investment and operational professionals with significant
investment experience and deep life science and healthcare
expertise. QHP benefits from an extensive network of industry
experts and relationships that assist in identifying, analyzing,
and growing QHP’s portfolio companies. QHP continues as the
investment manager for NovaQuest Private Equity funds. For more
information, please visit www.qhpcapital.com.
Forward-Looking Statements
Except for historical information, the matters discussed in this
press release are forward-looking statements that involve risks and
uncertainties. Words like “believe,” “expect,” and “anticipate”
mean that these are our best estimates as of this writing, but
there can be no assurances that expected or anticipated results or
events will actually take place, so our actual future results could
differ significantly from those statements. Factors that could
cause or contribute to such differences include, but are not
limited to: our ability to successfully integrate the Pro-ficiency
business with our own, as well as expenses we may incur in
connection therewith, our ability to maintain our competitive
advantages, acceptance of new software and improved versions of our
existing software by our customers, the general economics of the
pharmaceutical industry, our ability to finance growth, our ability
to continue to attract and retain highly qualified technical staff,
market conditions, macroeconomic factors, and a sustainable market.
Further information on our risk factors is contained in our
quarterly and annual reports and filed with the U.S. Securities and
Exchange Commission.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240612531439/en/
Simulations Plus IR or Media Renee
Bouche 661-723-7723 renee.bouche@simulations-plus.com
Financial Profiles Lisa Fortuna
310-622-8251 slp@finprofiles.com
Grafico Azioni Simulations Plus (NASDAQ:SLP)
Storico
Da Ago 2024 a Set 2024
Grafico Azioni Simulations Plus (NASDAQ:SLP)
Storico
Da Set 2023 a Set 2024