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RESEARCH TRIANGLE PARK, N.C. - Simulations Plus, Inc. (NASDAQ:SLP) has invested $1 million in Nurocor, a technology company that provides cloud-based software for clinical trial optimization, the company announced Monday. The investment comes as Simulations Plus, currently trading at $17.47, has seen its stock decline nearly 60% over the past year, though InvestingPro analysis suggests the stock may be undervalued at current levels.
The investment was made through Simulations Plus’ Corporate Development Initiative, which was launched in 2025 to support early-stage technology companies innovating within the pharmaceutical industry. According to InvestingPro data, the company maintains strong financial health with a current ratio of 4.37, indicating robust liquidity to support such strategic investments. Get access to 10+ additional ProTips and comprehensive analysis with an InvestingPro subscription.
Founded in 2017, Nurocor offers a platform designed to improve efficiency, reusability, governance, and automation for pharmaceutical companies through digitalization in the clinical development phase. According to the company, the solution accelerates clinical trial lifecycles and reduces overall development costs.
"We are pleased to support Nurocor in its mission to help clients leverage technology to bring drugs to market more rapidly," said Shawn O’Connor, Chief Executive Officer of Simulations Plus. "Their vision aligns with our own, and we see tremendous potential for clients to deploy our complementary solutions." The company’s strategic vision is supported by solid fundamentals, with revenue growth of 21.49% in the last twelve months and a healthy gross profit margin of 55.28%.
The clinical trial technology and services sector was estimated at $25.7 billion in 2024 and is projected to grow at a compound annual growth rate of 15.5% from 2025 to 2030, according to information provided in the press release.
Alex Lazar, Chief Executive Officer of Nurocor, described the investment as "a strong vote of confidence" in the company’s team and technology.
Simulations Plus provides cheminformatics, biosimulation, and medical communications solutions to the biopharmaceutical industry. The company stated that this investment aligns with its strategy to identify potential partners that complement its organic growth and expand its addressable market. With a market capitalization of $351 million and minimal debt, the company appears well-positioned for strategic growth. For detailed insights and comprehensive analysis, including Fair Value estimates and growth projections, visit InvestingPro.
The announcement was made in a company press release issued Monday.
In other recent news, Simulations Plus reported its third-quarter fiscal 2025 results, showcasing a significant earnings beat despite falling short on revenue expectations. The company posted adjusted earnings per share of $0.45, surpassing analyst estimates of $0.25. However, revenue totaled $20.4 million, below the $21.84 million consensus estimate, though it still marked a 10% year-over-year increase. Simulations Plus experienced a net loss of $67.3 million due to a one-time non-cash impairment charge of $77.2 million.
The company’s software revenue rose by 6% to $12.6 million, making up 62% of the total revenue, while services revenue saw a 17% increase to $7.7 million. Adjusted EBITDA reached $7.4 million, representing 37% of total revenue, compared to $5.6 million or 30% of total revenue in the previous year. Simulations Plus also updated its fiscal 2025 guidance, projecting revenue between $76 million and $80 million, with adjusted earnings per share between $0.93 and $1.06. This aligns with analyst expectations of $0.97 EPS and $77.94 million in revenue. Additionally, the company has undergone a strategic reorganization, moving to a functionally-driven operating model to enhance growth opportunities.
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