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Wednesday, Oct 4, 2023

Simulations Plus Buys Immunetrics

Lancaster-based Simulations Plus Inc., which provides modeling and simulation software and services for pharmaceutical products, is acquiring Pittsburgh-based Immunetrics Inc., another modeling and simulation company focused on accelerating drug development in oncology, immunology and autoimmune diseases.

Under the terms of the agreement announced on June 20, Simulations Plus agreed to pay the shareholders of Immunetrics $15.5 million in cash, including a $1.8 million holdback, plus two future earn-out payments in the aggregate amount of up to $8 million based on the revenue performance of Immunetrics through next year.

Following the close of the transaction, Immunetrics will be a wholly-owned subsidiary of Simulations Plus and will continue to operate under the Immunetrics name.

In the announcement, Simulations Plus said the acquisition will strengthen its expertise in quantitative systems pharmacology, which is the modeling of disease progression and pharmaceutical drug transmission throughout the body. The acquisition will also serve to expand the combined company’s focus on immunology and oncology.

“Today’s announcement marks the beginning of a transformative offering in QSP for our clients,” said Shawn O’Connor, Simulations Plus’ chief executive.

“Immunetrics brings proven QSP technology, a strong reputation in the market, and an incredibly talented team that we believe will provide us with a leading position in a rapidly growing field,” O’Connor continued. “Together, we intend to deliver valuable software solutions to help our clients provide optimized treatments to patients with speed and safety.”

O’Connor added that the acquisition is part of a strategy of deliberate expansion of the company’s modeling capabilities into new therapeutic areas. He cited the 2017 purchase of DILIsym Services, based in Research Triangle Park, North Carolina for an undisclosed amount of stock. DILIsym Services focused on modeling the dynamics of drug-induced liver injury, which at the time was regarded as the leading cause of acute liver failure in the United States. DILIsym Services is now a subsidiary of Simulations Plus and has kept its office in North Carolina.

The Immunetrics deal comes at a time when the practice of quantitative systems pharmacology is gaining more acceptance among pharmaceutical companies in the drug development process, the announcement said. The deal now allows Simulations Plus to apply its QSP technology to more than 20 areas of therapeutic practice, including cardiac wound healing, hypertension, inflammatory bowel diseases and multiple myeloma.

“We are excited to join Simulations Plus and work together with our new colleagues to further expand and standardize the use of QSP in drug development,” Immunetrics Chief Executive Steven Chang said in the announcement. “We complement one another in areas of QSP applications and share a commitment to scientific rigor and positive client outcomes.”

Hannah Madans Welk
Hannah Madans Welk
Hannah Madans Welk is a managing editor at the Los Angeles Business Journal and the San Fernando Valley Business Journal. She previously covered real estate for the Los Angeles Business Journal. She has done work with publications including The Orange County Register, The Real Deal and doityourself.com.

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