Investment for Software Acquisitions Recovered in Only 11 Months
Simulations Plus, Inc. (AMEX: SLP), a leading provider of simulation and modeling software for pharmaceutical discovery and development, announced today results of its recent investments to acquire and advance its ClassPharmer(TM) product line. The Company has received revenues and purchased accounts receivable from its acquisition last year of certain assets of the former Bioreason, Inc., and Sage Informatics, LLC, that have exceeded the original acquisition costs.
Momoko Beran, chief financial officer of Simulations Plus, said: “The total of revenues for ClassPharmer license renewals and new licenses, along with monies received from the accounts receivable that were acquired from Bioreason, have now exceeded one million dollars. We completed the Sage Informatics purchase in August 2005, and closed the Bioreason asset acquisition in November 2005. The total cash outlay for the two transactions was just under one million dollars. Thus, in 11 months, the monies from ClassPharmer have exceeded the original cash outlay used for the acquisitions. Of course, we have had expenses associated with salaries and overhead to support the new ClassPharmer product line, but overall, I’m really pleased with the very quick return we’ve seen on our investment.”
Ron Creeley, vice president of marketing and sales for Simulations Plus, said: “We’re delighted with the quality of the new ClassPharmer product that is the result of merging the technologies of Sage and Bioreason. Customers have consistently expressed amazement at the speed of the new version and the dramatic increase in productivity it provides over the Bioreason version. License renewals have been very strong, and customers that have adopted ClassPharmer are new additions to our existing customer base. Just this month we signed a site license with one of the largest pharmaceutical companies in the world, and this was a new ClassPharmer customer.” Walt Woltosz, chairman and chief executive officer of Simulations Plus, added: “It’s an exciting time at Simulations Plus. We believe that the announcements of the past month — the large consulting contract, the NIHS ClassPharmer license and the release of the new ADMET Predictor 2.0 integrated with ADMET Modeler — are a good indication that the company is well-positioned for continued growth which, coupled with the recent stock split, is good news for our shareholders.”