• Multiple AIDD runs were performed with varying parameters; results were combined and AIDD-generated compounds were identified in the Enamine REAL and WuXi GalaXi synthesis-on-demand libraries.
• Initial results were used to rebuild QSAR models and a second round of AIDD was performed and compounds identified in synthesis-on-demand libraries.
• In all, 69 molecules were synthesized and tested.

By Jeremy O Jones, Rafal A Bachorz, Joanna Pastwińska , Anna Sałkowska, Marcin Ratajewski

AACR Annual Meeting 2026, April 17th – 22nd, 2026, San Diego, CA

“Complex oral formulations such as amorphous solid dispersions present significant scientific and regulatory challenges due to their sensitivity to physiological and manufacturing variables,” said Dr. Viera Lukacova, Chief Scientific Officer of Simulations Plus. “Through this funded collaboration, we aim to integrate advanced in vitro systems with mechanistic modeling to improve prediction of in vivo performance, support regulatory decision-making, and enable more efficient development pathways for these high-impact therapies that deliver faster dissolution and more drug absorption.”

Advancing Mechanistic, Model-Informed Approaches for Complex Products

ASDs are among the most powerful yet complex oral drug delivery systems, with performance influenced by factors such as food intake, gastric pH, formulation composition, and manufacturing processes. Current regulatory approaches often require multiple clinical bioequivalence (BE) studies, which can be resource-intensive while still carrying uncertainty.

The collaboration evaluates whether advanced in vitro dissolution systems—particularly those incorporating dynamic gastrointestinal physiology—combined with mechanistic physiologically based biopharmaceutics modeling (PBBM), can reliably predict key in vivo outcomes, including food effects and the impact of elevated gastric pH conditions.

By establishing and validating these predictive capabilities, the collaboration aims to provide a scientific foundation for reducing reliance on certain clinical BE studies while maintaining the rigor and transparency required by regulators.

Integrating Experimental and Mechanistic Modeling Expertise

The collaboration brings together complementary capabilities across experimental science and computational modeling.

Lonza will lead experimental work, including in vitro dissolution testing under fasted, fed, and elevated gastric pH conditions using advanced systems such as Controlled Transfer Dissolution (CTD), as well as the characterization and, where needed, manufacturing of ASD formulation variants.

Simulations Plus will lead the development and validation of in vitro–in vivo extrapolation (IVIVE) frameworks using its DDDPlus® and GastroPlus® platforms, translating experimental data into predictions of in vivo pharmacokinetics and supporting virtual bioequivalence assessments. At the same time, it creates new opportunities to extend these capabilities into grounded AI-enabled workflow environments, where data, mechanistic models, and simulation outputs will be more directly connected. The Company will also contribute to interpretation within a regulatory context, ensuring alignment with evolving expectations for model-informed drug development (MIDD).

Francois Ricard, Head of R&D, Lonza Advanced Synthesis, said, “This collaboration reflects Lonza’s commitment to advancing more predictive, science-driven approaches as the leader in the field of bioavailability enhancement. By combining advanced in vitro experimentation with mechanistic modeling, and working closely with Simulations Plus and the FDA, we aim to strengthen the scientific foundation that underpins regulatory decision-making for complex oral drug products. Ultimately, this type of collaboration should help accelerate development for our customers requiring bioequivalence during clinical development.”

Alignment with Regulatory Priorities and Industry Needs

This work is supported in part through FDA funding and includes ongoing engagement with FDA scientists to directly align with regulatory priorities to advance MIDD, modernize bioequivalence assessment for complex products, and reduce unnecessary reliance on human studies. By combining regulatory collaboration with open, non-proprietary data and validated methods based on real-world, FDA-approved ASD products, the initiative is intended to inform future regulatory approaches and support broader adoption of science-based alternatives.

“The industry is moving toward a future where decisions are informed earlier, with greater confidence and scientific transparency,” added Lukacova. “Our role is to ensure those decisions are grounded in validated science—while enabling more efficient ways to connect data, models, and insight.”

More than 1,400 scientists from industry, academia, and regulatory agencies from over 65 countries participated in the week-long program, reflecting the high demand for expert-led training as modeling and simulation increasingly become standard for drug development strategy, regulatory engagement, and clinical execution.

“As model-informed approaches become central to how therapies are developed, it is vital to apply modeling and simulation consistently across teams,” said Jonathan Chauvin, Co-Chief Product and Technology Officer of Simulations Plus. “Through programs like Spring School, we are expanding access to these capabilities to support the next generation of scientists, while enabling broader adoption of model-informed workflows across the industry. These foundational skills are essential for scientists to evolve with the discipline and leverage validated scientific engines and AI-enabled ecosystems to support better decision-making across the drug development lifecycle.”

Held from March 23 to 27, 2026, the Spring School program offered two tracks: GastroPlus® Spring School: From PBPK Basics to Biopharmaceutics Applications, and MonolixSuite™ Spring School: High-Impact Pharmacometrics Case Studies. Both tracks included interactive lectures, hands-on exercises, and live Q&A sessions led by Simulations Plus experts.

“The continued scale and diversity of participation in this year’s program reflects how quickly model-informed approaches are becoming embedded across the global scientific community,” said Jennifer Johnson, Manager of Learning Services of Simulations Plus. “Our focus is on building programs that not only educate but also help scientists translate these methods into real-world workflows and collaborative environments.”

Simulations Plus has a long-standing commitment to education. In addition to its Spring School, the Company has previously offered Summer and Autumn Schools focused on PK/PD modeling. The most recent Autumn School was the first program to offer a second track focused on PBPK modeling. In addition to these programs, Simulations Plus is widely known for its University+ program, which provides free academic access to modeling and simulation software for thousands of students and educators worldwide. Together, these initiatives form a cornerstone of the Company’s global educational outreach—helping expand the adoption of model-informed approaches and strengthening the pipeline of scientists equipped to apply these methods across the drug development lifecycle.

This study addresses the critical need for improved physicochemical descriptors and predictive models tailored to beyond Rule of Five (bRo5) compounds, including PROTACs and cyclic peptides. By integrating experimental parameters such as EPSA1, ChromLogD2, and ChameLogK3 with computationally derived features of molecular chameleonicity, we aim to establish new structure–property relationships that better capture the dynamic polarity and conformational adaptability of these complex molecules. The resulting models are designed to enhance the prediction of key in vitro ADME and in vivo pharmacokinetic (PK) endpoints, ultimately providing a more reliable framework for the design and optimization of developable bRo5 therapeutics. Case studies demonstrate the contribution of these new descriptors to model building as well as improvements in predicting key in vivo endpoints for this challenging chemical space.

By Jeremy O. Jones, Rafał A. Bachorz, Vladimir Chupakhin, Michael Lawless, David Miller, and Robert Fraczkiewicz

CHI Drug Discovery Chemistry, April 13th – 16th, 2026, San Diego, CA

Second Quarter 2026 Financial Highlights (as compared to second quarter 2025)

• Total revenue increased 8% to $24.3 million
• Software revenue increased 9% to $14.6 million, representing 60% of total revenue
• Services revenue increased 8% to $9.7 million, representing 40% of total revenue
• Gross profit was $16.1 million and gross margin was 66%, compared to $13.1 million and 59%
• Net income of $4.5 million and diluted earnings per share of $0.22, compared to net income of $3.1 million and diluted EPS of $0.15
• Adjusted EBITDA of $8.7 million, representing 36% of total revenue, compared to $6.6 million, representing 29% of total revenue
• Adjusted net income of $7.0 million and adjusted diluted EPS of $0.35 compared to adjusted net income of $6.2 million and adjusted diluted EPS of $0.31

Six Months 2026 Financial Highlights (as compared to six months 2025)

• Total revenue increased 3% to $42.7 million
• Software revenue decreased 3% to $23.5 million, representing 55% of total revenue
• Services revenue increased 12% to $19.2 million, representing 45% of total revenue
• Gross profit was $27.0 million and gross margin was 63%, compared to $23.3 million and 56%
• Net income of $5.2 million and diluted earnings per share of $0.26, compared to net income of $3.3 million and diluted EPS of $0.16
• Adjusted EBITDA of $12.3 million, representing 29% of total revenue, compared to $11.1 million, representing 27% of total revenue
• Adjusted net income of $9.6 million and adjusted diluted EPS of $0.48, approximately equivalent to the same period last year

Management Commentary

“We delivered solid second quarter results, with revenue increasing by 8%,” said Shawn O’Connor, CEO of Simulations Plus. “Software growth was driven by strong performance in discovery and development solutions, partially offset by an anticipated decline in clinical operations software. We also saw continued success with new logo additions and client upsells. Services revenue growth was primarily driven by development solutions and bookings were strong during the quarter, resulting in an approximately 18% increase in backlog.”

“Market conditions remain favorable. Globally, ongoing most-favored-nation pricing agreements, reduced tariff threats, and an improving funding environment are benefiting our clients. In addition, we believe recent supplemental guidance on new approach methodologies is supporting increased client activity. We are seeing this reflected in strong software renewals, logo activity, and services bookings. Overall, we are pleased with our first-half fiscal 2026 performance and encouraged by the momentum we see across the business,” concluded O’Connor.

Fiscal 2026 Guidance

The Company is adjusting its guidance range for adjusted diluted EPS from a range of $1.03 – $1.10 to $0.75 – $0.85 to reflect an increase in the expected effective tax rate for fiscal 2026 from 12-14% to 23-25%. All other previously issued guidance metrics remain unchanged.

Webcast and Conference Call Details

Shawn O’Connor, Chief Executive Officer, and Will Frederick, Executive Vice President and Chief Financial Officer, will host a conference call and webcast today, April 9 at 5:00 p.m. Eastern Time to discuss the results and certain forward-looking information. The call may be accessed by registering here or by calling 1-877-451-6152 (domestic) or 1-201-389-0879 (international). The webcast can be accessed on the investor relations page of the Simulations Plus website https://www.simulations-plus.com/investorscorporate-profile/corporate-profile/ where it will also be available for replay approximately one hour following the call.

Non-GAAP Financial Measures

This press release contains “non-GAAP financial measures,” which are measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”).

A further explanation and reconciliation of these non-GAAP financial measures is included below and in the financial tables in this release.

The Company believes that the non-GAAP financial measures presented facilitate an understanding of operating performance and provide a meaningful comparison of its results between periods. The Company’s management uses non-GAAP financial measures to, among other things, evaluate its ongoing operations in relation to historical results, for internal planning and forecasting purposes, and in the calculation of performance-based compensation. Adjusted EBITDA and Adjusted Diluted EPS represent measures that we believe are customarily used by investors and analysts to evaluate the financial performance of companies in addition to the GAAP measures that we present. Our management also believes that these measures are useful in evaluating our core operating results. However, Adjusted EBITDA and Adjusted Diluted EPS are not measures of financial performance under accounting principles generally accepted in the United States of America and should not be considered an alternative to net income, operating income, or diluted EPS as indicators of our operating performance or to net cash provided by operating activities as a measure of our liquidity. We believe the Company’s Adjusted EBITDA and Adjusted Diluted EPS measures provide information that is directly comparable to that provided by other peer companies in our industry, but other companies may calculate non-GAAP financial results differently, particularly related to nonrecurring, unusual items.

Please note that the Company has not reconciled the adjusted EBITDA or adjusted diluted earnings per share forward-looking guidance included in this press release to the most directly comparable GAAP measures because this cannot be done without unreasonable effort due to the variability and low visibility with respect to costs related to acquisitions, financings, and employee stock compensation programs, which are potential adjustments to future earnings. We expect the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results.

Adjusted EBITDA

Adjusted EBITDA represents net income excluding the effect of interest expense (income), provision (benefit) for income taxes, depreciation and amortization, equity-based compensation expense, loss (gain) on currency exchange, impairment charges, change in fair value of contingent consideration, reorganization expense, acquisition and integration expense, and other items not indicative of our ongoing operating performance.

Adjusted Net Income and Adjusted Diluted EPS

Adjusted net income and adjusted diluted earnings per share exclude the effect of amortization, equity-based compensation expense, loss (gain) on currency exchange, impairment charges, change in fair value of contingent consideration, reorganization expense, acquisition and integration expense, and other items not indicative of our ongoing operating performance as well as the income tax provision adjustment for such charges.

The Company excludes the above items because they are outside of the Company’s normal operations and/or, in certain cases, are difficult to forecast accurately.

View full results here.