We have reduced our fiscal 2011 (August) earnings estimate by a penny to $.19 a share (non GAAP). Next year $.23-$.25 a share appears a realistic target. Simulations Plus recently finished an in house test project, using its software to develop a cure for malaria from scratch. Customers currently employ the technology to narrow down their searches. This is the first time anybody has identified a target disease and created an entirely new molecule to treat it straight out of the computer. Simulations Plus came up with 12 candidates. It plans to hire some outside labs to perform preliminary testing on them to determine if they have a shot. Chances are these particular molecules won't provide the exact solution. But they might be close enough to persuade the drug companies to adopt the approach, maybe come up with 120 candidates instead, and discover high potential drugs at a fraction of the current cost.
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