Simulation Plus Under Investigation for Securities Violations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: PRnewswire
- Shareholder Rights Investigation: Robbins LLP is investigating Simulation Plus, Inc. to determine if certain officers and directors violated securities laws and breached fiduciary duties, potentially exposing the company to legal risks and financial losses.
- Stock Price Plunge: On June 11, 2025, Simulation Plus lowered its fiscal 2025 revenue outlook due to market uncertainties, causing its stock to drop over 24% from $26.44 to $20.05, indicating investor concerns about the company's future prospects.
- Disappointing Financial Results: On July 14, 2025, Simulation Plus reported a net loss of $67.3 million for the third quarter and a $77.2 million non-cash impairment charge, leading to a nearly 26% decline in stock price from $17.47 to $12.97, reflecting severe deterioration in the company's financial health.
- Auditor Dismissal: The company disclosed that it could not finalize certain matters in its financial reporting, resulting in the dismissal of its auditor Grant Thornton LLP, a decision that may further undermine investor confidence and exacerbate market concerns regarding corporate governance.
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Current: 17.730
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About SLP
Simulations Plus, Inc. specializes in model-informed and artificial intelligence (AI)-accelerated drug development. The Company helps its clients by accelerating the discovery, development, and commercialization of pharmaceuticals and other products through science-based software and consulting solutions. The Company’s segments include Software and Services. The Company's Software segment supports pharmaceutical research, development, and commercialization through simulation, modeling, and AI-driven prediction. Its main products include GastroPlus, ADMET Predictor, MonolixSuite, and others for disease modeling and training, as well as Pro-ficiency for clinical operations. Its Services segment includes advanced consulting services across the entire drug development lifecycle. Its scientists and engineers specialize in drug discovery, pharmacokinetics, pharmacodynamics, drug modeling, clinical trial data analysis, regulatory strategy, and medical communications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Simulation Plus Under Investigation for Securities Violations
- Shareholder Rights Investigation: Robbins LLP is investigating Simulation Plus, Inc. to determine if certain officers and directors violated securities laws and breached fiduciary duties, potentially exposing the company to legal risks and financial losses.
- Stock Price Plunge: On June 11, 2025, Simulation Plus lowered its fiscal 2025 revenue outlook due to market uncertainties, causing its stock to drop over 24% from $26.44 to $20.05, indicating investor concerns about the company's future prospects.
- Disappointing Financial Results: On July 14, 2025, Simulation Plus reported a net loss of $67.3 million for the third quarter and a $77.2 million non-cash impairment charge, leading to a nearly 26% decline in stock price from $17.47 to $12.97, reflecting severe deterioration in the company's financial health.
- Auditor Dismissal: The company disclosed that it could not finalize certain matters in its financial reporting, resulting in the dismissal of its auditor Grant Thornton LLP, a decision that may further undermine investor confidence and exacerbate market concerns regarding corporate governance.
See More
Robbins LLP Investigates Simulation Plus Executives for Securities Violations
- Shareholder Rights Investigation: Robbins LLP is investigating Simulation Plus, Inc. to determine if certain executives violated securities laws and breached fiduciary duties, indicating potential serious issues in corporate governance.
- Declining Financial Performance: On July 14, 2025, Simulation Plus reported a net loss of $67.3 million for Q3, alongside a $77.2 million non-cash impairment charge, reflecting operational challenges amid market uncertainties, leading to a significant stock price drop.
- Auditor Dismissal: The company disclosed the dismissal of its auditor, Grant Thornton LLP, indicating unresolved issues in financial reporting and internal controls, which further exacerbates investor concerns about the company's financial integrity.
- Stock Price Volatility: Following the financial disclosures on June 11 and July 15, Simulation Plus's stock fell over 24% and nearly 26%, respectively, demonstrating the market's strong reaction to its financial health, which may impact future fundraising capabilities.
See More
Simulations Plus Under Investigation Amid Significant Stock Decline
- Securities Law Investigation: Johnson Fistel, PLLP is investigating whether Simulations Plus, Inc. violated federal securities laws, focusing on investor losses and potential recovery, which could impact the company's reputation and future financing capabilities.
- Severe Market Reaction: Following the revenue outlook update on June 11, 2025, Simulations Plus's stock plummeted over 24%, from $26.44 to $20.05, reflecting strong market concerns regarding the company's future prospects.
- Deteriorating Financial Condition: On July 14, 2025, the company reported a net loss of $67.3 million for the third quarter and a $77.2 million non-cash impairment charge, indicating a severe decline in financial health that further undermines investor confidence.
- Impact of Auditor Dismissal: The dismissal of Grant Thornton LLP due to unresolved financial reporting issues led to a nearly 26% drop in stock price, from $17.47 to $12.97, highlighting significant problems with internal controls and financial transparency.
See More
Simulations Plus Collaborates with Lonza to Develop Drug Assessment Framework
- Research Collaboration Initiated: Simulations Plus has announced a funded research collaboration with Lonza and the FDA to develop and validate a mechanistic predictive framework for assessing amorphous solid dispersion drug products, enhancing early risk identification and regulatory confidence.
- Technological Integration Advantage: This collaboration aims to combine advanced in vitro dissolution systems with mechanistic biopharmaceutics modeling to improve predictions of in vivo performance, thereby reducing reliance on clinical bioequivalence studies and lowering development costs.
- Experimental and Modeling Synergy: Lonza will lead in vitro dissolution testing under various physiological conditions, while Simulations Plus will utilize its DDDPlus® and GastroPlus® platforms to develop in vitro-in vivo extrapolation frameworks, facilitating virtual bioequivalence assessments.
- Regulatory Alignment: The project is supported by FDA funding and involves ongoing engagement with FDA scientists to modernize bioequivalence assessments for complex products, promoting science-based alternatives that enhance transparency and confidence in industry decision-making.
See More
Simulations Plus Partners with Pharma for AI Drug Development
- Collaboration Programs: Simulations Plus announced collaboration programs with three large pharmaceutical companies to enhance modeling efficiency in drug development using AI technology, indicating the company's leadership in the medical AI sector.
- Financial Performance Exceeds Expectations: For Q2 FY2026, Simulations Plus reported an EPS of $0.35, up from $0.31 year-over-year, surpassing the consensus estimate of $0.31, demonstrating the company's strong profitability.
- Significant Revenue Growth: The company reported an 8% year-over-year revenue increase to $24.3 million, exceeding the market forecast of $21.66 million, with the software segment accounting for 60% of total revenue, reflecting its competitive advantage in the market.
- Optimistic Future Outlook: Simulations Plus anticipates full-year revenue between $79 million and $82 million, suggesting potential growth of up to 4%, and expects adjusted EPS in the range of $0.75 to $0.85, showcasing the company's confidence in future performance.
See More
Market Remains Cautious as Oil Approaches $100 Amid Inflation Concerns
- Market Dynamics: Stock futures are essentially flat, reflecting a cautious market waiting for confirmation, with momentum from earlier in the week fading as investors remain on the sidelines regarding future trends.
- Oil Price Movement: Oil prices are creeping higher again, hovering near the $100 per barrel level, primarily due to doubts about the durability of the ceasefire and ongoing disruptions in the Strait of Hormuz, indicating persistent inflationary pressures.
- CPI Report Impact: The Consumer Price Index (CPI) report showed the sharpest year-over-year price increases for consumers in nearly four years, largely driven by the recent energy shock, and despite a pause in fighting, oil flows remain constrained and supply chains are still disrupted.
- Stock Market Performance: In pre-market trading, S&P 500 futures rose 0.14%, Nasdaq futures rose 0.21%, and Dow futures rose 0.02%, reflecting a cautiously optimistic sentiment in the market regarding future developments.
See More
Simulation Plus Under Investigation for Securities Violations
- Shareholder Rights Investigation: Robbins LLP is investigating Simulation Plus, Inc. to determine if certain officers and directors violated securities laws and breached fiduciary duties, potentially exposing the company to legal risks and financial losses.
- Stock Price Plunge: On June 11, 2025, Simulation Plus lowered its fiscal 2025 revenue outlook due to market uncertainties, causing its stock to drop over 24% from $26.44 to $20.05, indicating investor concerns about the company's future prospects.
- Disappointing Financial Results: On July 14, 2025, Simulation Plus reported a net loss of $67.3 million for the third quarter and a $77.2 million non-cash impairment charge, leading to a nearly 26% decline in stock price from $17.47 to $12.97, reflecting severe deterioration in the company's financial health.
- Auditor Dismissal: The company disclosed that it could not finalize certain matters in its financial reporting, resulting in the dismissal of its auditor Grant Thornton LLP, a decision that may further undermine investor confidence and exacerbate market concerns regarding corporate governance.
See More
Robbins LLP Investigates Simulation Plus Executives for Securities Violations
- Shareholder Rights Investigation: Robbins LLP is investigating Simulation Plus, Inc. to determine if certain executives violated securities laws and breached fiduciary duties, indicating potential serious issues in corporate governance.
- Declining Financial Performance: On July 14, 2025, Simulation Plus reported a net loss of $67.3 million for Q3, alongside a $77.2 million non-cash impairment charge, reflecting operational challenges amid market uncertainties, leading to a significant stock price drop.
- Auditor Dismissal: The company disclosed the dismissal of its auditor, Grant Thornton LLP, indicating unresolved issues in financial reporting and internal controls, which further exacerbates investor concerns about the company's financial integrity.
- Stock Price Volatility: Following the financial disclosures on June 11 and July 15, Simulation Plus's stock fell over 24% and nearly 26%, respectively, demonstrating the market's strong reaction to its financial health, which may impact future fundraising capabilities.
See More
Simulations Plus Under Investigation Amid Significant Stock Decline
- Securities Law Investigation: Johnson Fistel, PLLP is investigating whether Simulations Plus, Inc. violated federal securities laws, focusing on investor losses and potential recovery, which could impact the company's reputation and future financing capabilities.
- Severe Market Reaction: Following the revenue outlook update on June 11, 2025, Simulations Plus's stock plummeted over 24%, from $26.44 to $20.05, reflecting strong market concerns regarding the company's future prospects.
- Deteriorating Financial Condition: On July 14, 2025, the company reported a net loss of $67.3 million for the third quarter and a $77.2 million non-cash impairment charge, indicating a severe decline in financial health that further undermines investor confidence.
- Impact of Auditor Dismissal: The dismissal of Grant Thornton LLP due to unresolved financial reporting issues led to a nearly 26% drop in stock price, from $17.47 to $12.97, highlighting significant problems with internal controls and financial transparency.
See More
Simulations Plus Collaborates with Lonza to Develop Drug Assessment Framework
- Research Collaboration Initiated: Simulations Plus has announced a funded research collaboration with Lonza and the FDA to develop and validate a mechanistic predictive framework for assessing amorphous solid dispersion drug products, enhancing early risk identification and regulatory confidence.
- Technological Integration Advantage: This collaboration aims to combine advanced in vitro dissolution systems with mechanistic biopharmaceutics modeling to improve predictions of in vivo performance, thereby reducing reliance on clinical bioequivalence studies and lowering development costs.
- Experimental and Modeling Synergy: Lonza will lead in vitro dissolution testing under various physiological conditions, while Simulations Plus will utilize its DDDPlus® and GastroPlus® platforms to develop in vitro-in vivo extrapolation frameworks, facilitating virtual bioequivalence assessments.
- Regulatory Alignment: The project is supported by FDA funding and involves ongoing engagement with FDA scientists to modernize bioequivalence assessments for complex products, promoting science-based alternatives that enhance transparency and confidence in industry decision-making.
See More
Simulations Plus Partners with Pharma for AI Drug Development
- Collaboration Programs: Simulations Plus announced collaboration programs with three large pharmaceutical companies to enhance modeling efficiency in drug development using AI technology, indicating the company's leadership in the medical AI sector.
- Financial Performance Exceeds Expectations: For Q2 FY2026, Simulations Plus reported an EPS of $0.35, up from $0.31 year-over-year, surpassing the consensus estimate of $0.31, demonstrating the company's strong profitability.
- Significant Revenue Growth: The company reported an 8% year-over-year revenue increase to $24.3 million, exceeding the market forecast of $21.66 million, with the software segment accounting for 60% of total revenue, reflecting its competitive advantage in the market.
- Optimistic Future Outlook: Simulations Plus anticipates full-year revenue between $79 million and $82 million, suggesting potential growth of up to 4%, and expects adjusted EPS in the range of $0.75 to $0.85, showcasing the company's confidence in future performance.
See More
Market Remains Cautious as Oil Approaches $100 Amid Inflation Concerns
- Market Dynamics: Stock futures are essentially flat, reflecting a cautious market waiting for confirmation, with momentum from earlier in the week fading as investors remain on the sidelines regarding future trends.
- Oil Price Movement: Oil prices are creeping higher again, hovering near the $100 per barrel level, primarily due to doubts about the durability of the ceasefire and ongoing disruptions in the Strait of Hormuz, indicating persistent inflationary pressures.
- CPI Report Impact: The Consumer Price Index (CPI) report showed the sharpest year-over-year price increases for consumers in nearly four years, largely driven by the recent energy shock, and despite a pause in fighting, oil flows remain constrained and supply chains are still disrupted.
- Stock Market Performance: In pre-market trading, S&P 500 futures rose 0.14%, Nasdaq futures rose 0.21%, and Dow futures rose 0.02%, reflecting a cautiously optimistic sentiment in the market regarding future developments.
See More
