Simulations Plus, Inc. (NASDAQ: SLP), a leading provider of simulation and modeling software for pharmaceutical discovery and development, today announced that the Stock Purchase Agreement (the “Agreement”) with DILIsym Services, Inc. (“DILIsym”) of Research Triangle Park, North Carolina, announced on May 1, 2017, has been closed as of today, and DILIsym is now a division of Simulations Plus. DILIsym is the global leader in the simulation of drug-induced liver injury (“DILI”).
Pursuant to the Agreement, upon closing, DILIsym has become a wholly owned subsidiary of Simulations Plus and will continue to operate under the DILIsym name. As a result of this accretive acquisition, the total number of Simulations Plus employees is increasing from 70 to 81. DILIsym realized revenues of just over $3 million in 2016 with $720,000 in net earnings. Management expects to grow the business going forward.
Walt Woltosz, chairman and chief executive officer of Simulations Plus, Inc., said, “This is an exciting step forward for both Simulations Plus and DILIsym Services, Inc. Drug-induced liver injury can result in failed clinical trials and in drugs being withdrawn from the market, both of which are a financial disaster to a pharmaceutical company. Thus, it is important to identify new drug compounds that may produce DILI as early as possible in the development cycle in order to eliminate them and to focus resources on compounds more likely to be successful. Dr. Brett Howell has been appointed president of the division. Dr. Scott Siler has been appointed chief scientific officer. Dr. Bud Nelson will serve as director of operations. We look forward to collaborating with the management team of DILIsym to advance further the study and simulation of drug-induced liver injury.”
Dr. Howell added, “I look forward to working with Walt, the scientists at Simulations Plus and Cognigen, and the board of directors to ensure the continued success of our company. I am excited about the opportunities this combination of technologies affords for the future of clinical pharmacology. The strong interest in pharmaceutical companies and regulatory agencies in avoiding DILI for new drugs fuels our DILI-sim Initiative.”
The DILI-sim Initiative, under the direction of Dr. Paul Watkins, professor at the University of North Carolina and world-renown expert on DILI, is a consortium of 12 pharmaceutical companies that fund, guide, and support through their technical expertise the further development of the DILIsym software. Dr. Watkins is also chair of the Company’s prestigious scientific advisory board, made up of global leaders in the study of drug-induced liver injury.