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Simulations Plus (SLP) Launches Program to Fight Coronavirus

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Simulations Plus, Inc. (SLP - Free Report) recently rolled out the StrategiesPlus COVID-19 ACT Program to aid researchers in their fight against the global coronavirus pandemic.

Offerings of the integrated program are designed to optimize dosing modalities as well as predict potential risks to accelerate decision making and regulatory approval processes.

Simulations Plus expects the new solutions, leveraging modeling and simulation capabilities, to accelerate pharmaceutical research in enhancing the forecasts of clinical trials.

Moreover, the latest integrated tools are anticipated to speed up the process of regulatory approval, which will be a major contribution toward resisting the COVID-19 pandemic.

The company’s offerings are expected to witness solid traction among various research agencies given the extreme pressure they are in to deliver results. Moreover, the new solutions are likely to improve brand reputation and boost investors’ confidence in the company.

Notably, shares of Simulations Plus have surged 61.4% in the past year, outperforming the industry’s rise of 13.4%.

Simulations Plus, Inc. Price and Consensus

 

 

Improved Capabilities to Drive Growth

The StrategiesPlus COVID-19 ACT Program is a testament to Simulations Plus’ focus on enhancing its capabilities to drive the top line.

Notably, the company’s acquisitions of Cognigen and DILIsym have significantly enhanced its simulation capabilities. Moreover, they have expanded Simulations Plus’ portfolio of offerings and has allowed it expand in additional markets.

Additionally, the company has been investing in hiring scientific consultants that has greatly expanded its consulting expertise and is likely to aid in acquiring more consulting clients in the near term.

Further, Simulations Plus’ investments in sales & marketing are expected to aid it attract more customers and drive revenue growth in the upcoming quarters. Notably, in first-quarter fiscal 2020, the company generated revenues of $9.4 million, up 24.8% from the year-ago quarter’s reported figure.

However, the company’s increasing expenses are expected to put pressure on its margins at least in the near term.

New Products to Provide Competitive Edge

Simulation Plus’ COVID-19 focused offerings are also expected to give it an edge against its competitors in the pharmaceutical simulations market, against peers like Schrödinger, Certara and SeraCare among others.

Moreover, it is likely to get a solid foothold in the broader simulations software market, which is expected to witness a CAGR of 15.1% between 2020 and 2025, per Mordor Intelligence. This bodes well for the company’s growth over the long haul.

Zacks Rank & Stocks to Consider

Currently, Simulations Plus carries a Zacks Rank #3 (Hold).

Some other better-ranked stocks in the broader technology sector include CyberOptics Corporation , Qorvo, Inc. (QRVO - Free Report) and SAP SE (SAP - Free Report) . All three stocks sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term earnings growth rate for CyberOptics, Qorvo and SAP is currently pegged at 12%, 8.4% and 9.5%%, respectively.

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