Simulations Plus Inc. has entered into a five-year research collaboration agreement with the U.S. Food and Drug Administration’s Center for Veterinary Medicine to test drug efficacy in animals.

The Lancaster drug simulation company on Tuesday said the FDA will use its software to assess “product bioequivalence” in dogs to see if one drug is more efficient than another in producing the desired result.

“It is always exciting to announce ground-breaking collaborations with the FDA and reinforce our partnership as we advance science in new areas,” Viera Lukacova, director of Simulation Sciences for Simulations Plus and principal investigator on the project, said in a statement. “Ideally, through verification of the methods and results, a framework can be provided to support these approaches for other drugs.”

Shares of Simulation Plus (SLP) closed Tuesday down 2 cents, or less than one percent, to $31.89 on the Nasdaq.