Simulations Plus reports 70% success rate in AI-driven drug design

RESEARCH TRIANGLE PARK, N.C. - Simulations Plus, Inc. (NASDAQ:SLP) announced Tuesday that its artificial intelligence-driven drug design (AIDD) collaboration with the Institute of Medical Biology of the Polish Academy of Sciences (IMB PAS) has yielded promising results in developing novel compounds targeting inflammation and immune responses. The company, currently valued at $275 million, has demonstrated strong financial fundamentals with a healthy current ratio of 5.11 and minimal debt, according to InvestingPro data.

According to a press release, 70% of the 27 compounds designed using the company’s ADMET Predictor software demonstrated significant inhibition of RORγT activity during in vitro testing. The lead compound exhibited potent inverse agonist activity with a novel indolizine scaffold not previously reported for this target.

The collaboration, launched in 2023, focused on developing RORγ/RORγT ligands, molecules that impact gene expression related to inflammation and immune responses. Within three months, the teams developed models to predict ligand potency and designed compounds optimized for potency, absorption, synthesizability, and ADMET risk.

Rafal A. Bachorz, Senior Principal Applied Scientist at Simulations Plus and lead author of the study published in the American Chemical Society Medical Chemistry Letters, noted that the lead compound "displayed strong efficacy in cellular assays, no significant cytotoxicity, and effectively suppressed the expression of proinflammatory Th17 cytokines in human T cells."

The research also confirmed that the most potent compound possessed favorable drug-like properties as predicted by the software, supporting its potential for further development.

Viera Lukacova, Chief Scientific Officer at Simulations Plus, stated that the results validate the company’s models and platform, which provide clients with "a first-to-invent advantage by harnessing artificial intelligence and machine learning to design and optimize compounds for specific targets."

Simulations Plus, with over 25 years in the industry, provides software and consulting services for drug discovery, development, research, and commercialization to pharmaceutical, biotechnology, and regulatory agencies worldwide.

In other recent news, Simulations Plus reported its fiscal third-quarter 2025 earnings, revealing a revenue of $20.4 million, which marks a 9.8% increase from the previous year. This figure surpassed both BTIG’s and consensus estimates, which were set at $20.1 million. The company also reported an adjusted EBITDA of $7.4 million, a 33% year-over-year increase, exceeding expectations from BTIG and consensus figures. Despite these positive results, KeyBanc downgraded Simulations Plus from Overweight to Sector Weight, citing challenges in the biopharma market affecting the company due to customer concentration and biotech exposure.

Stephens also adjusted its outlook, lowering the price target for Simulations Plus from $28.00 to $20.00, while maintaining an Overweight rating, due to macroeconomic headwinds. Meanwhile, BTIG maintained a Buy rating with a price target of $25.00, reflecting confidence in the company’s performance despite industry challenges. Citizens JMP reiterated its Market Perform rating, noting that the company’s revenue surpassed both its estimate and Simulations Plus’s preliminary expectations. Additionally, Simulations Plus appointed Rose, Snyder & Jacobs as its new auditor after dismissing Grant Thornton LLP, a move aimed at ensuring timely completion of its quarterly report.

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