SLP to be Acquired by Altaris, the Deal Price Seems Fair

研报英文原文证据摘录

SLP to be Acquired by Altaris, the Deal Price Seems Fair

Investment Thesis

We rate the shares of Simulations Plus (SLP) Neutral. We expect Altaris' announced acquisition of SLP for ~$18.50 per share to close

in C4Q:26. SLP is an industry market leader due mainly to its breadth and depth of products and services solutions in the modeling

and simulation space with drug discovery, development, and regulatory approval capabilities. We like SLP’s competitive standing in

the modeling and simulation industry for both its software and services solutions. SLP’s range of software solutions is highlighted

by the company’s most successful products, which are its Monolix, ADMET Predictor and GastroPlus applications. Monolix is oneHEALTHCARE of the most advanced, yet easiest to use solutions for model-based drug development in pharmacometrics and is one of SLP’s most

IT successful products. The ADMET Predictor provides unique capabilities for discovery PK assessment and deployment in the study

of molecules and compounds in the pharmaceutical and related industries. Gastroplus provides PBBM and PBPK modeling and

simulation solutions that support internal research and regulatory filing processes. SLP’s consulting solutions provide specializedAND modeling and simulation expertise in a wide variety of industries, delivering proprietary capabilities that many customers don’t

have at their disposal. SLP’s comprehensive, integrated suite of software and consulting solutions in the modeling and simulations

industry creates a sizable moat with a high barrier to entry in our view. We like SLP’s business model with high operating leverage

and its management team which has significant expertise in the modeling and simulation space led by CEO Shawn O’Connor. We