Simulations Plus Corporate Overview

Simulations Plus, Inc. is the leading developer of Absorption, Distribution, Metabolism and Excretion (ADME) neural net and simulation software for the pharmaceutical and biotechnology industries today. The Company’s software allows pharmaceutical scientists to predict certain key potential drug dynamics, such as absorption, in silico, thereby eliminating multi-million dollar clinical trial failures and speeding up the time to market of effective new medications.

Software Product Suite

GastroPlus™ is a computer program for Windows 95/98/NT/2000 & XP platforms that simulates absorption and pharmacokinetics for orally dosed drugs. The underlying model is the Advanced Compartmental Absorption and Transit (ACAT) model - an extension of work originally done by Gordon Amidon and Lawrence Yu.

ADMET Predictor™ is an advanced computer program that enables pharmaceutical researchers to estimate ADMET properties (such as permeability, solubility, lipophilicity, diffusivity, etc.) of new chemical entities (NCE's) from their molecular structure structure-to-property prediction. ADMET Predictor™ now incorporates ADMET Modeler™, a powerful software program that reduces the time needed to create high quality predictive artificial neural network models from several months to a few days.

ClassPharmer™ is an intuitive software for screening data analysis, hit-to-lead development and lead Optimization. It enhances the hits-to-lead-to-clinic process by finding drug leads with novel and unpatented structural motifs, reducing screening costs with more efficient follow-up screening strategies and improving productivity with software that thinks like a medicinal chemist.

DDDPlus™ is a valuable tool for formulation scientists that simulates the in vitro disintegration and dissolution of dosage forms in USP Paddle, Basket, and Flow-Through experiments.

Industry Market Drivers
• $50 billion annual pharmaceutical industry R&D expenditures
• 16% projected annual growth of pharmaceutical R&D spending over the next four years
• $350-900 million is the average cost to bring new drug to market
• Pressure to reduce the use of animals in pharmaceutical research

Licenses with International Pharmaceutical Customers:
Nearly Every one of the top 20 pharmaceutical companies in the world hold product licenses with Simulations Plus.

Growth Strategy
• Continue aggressive marketing of existing products
• ADME Partners™ global licensing program for large pharmaceutical
• Continue to develop additional-cost product enhancements to GastroPlus™, ADMET Predictor™ and ADMET Modeler™
• Develop new core products in drug delivery

Why Invest in Simulations Plus?
• High-growth company with a recurring revenue stream in a very large, essential industry
• Demonstrated performance in revenue and earnings with a positive cash flow and a non-debt balance sheet
Best-in-industry management team and software