Two new collaboration deals recently were signed. Those projects will be paid for by drug companies that want specific features developed. Simulations Plus performs the work and retains title to the software improvements, enhancing the functionality of existing product line. A similar albeit less lucrative arrangement with the F.D.A. is nearing completion in the toxicology area. Simulations Plus hopes to commercialize that technology next year in the food safety market. The company also is likely to expand its consulting operation. An in-house demonstration project proved the company could use its technology and produce several viable drug candidates on a lark. Existing customers are likely to begin hiring Simulations Plus's personnel to apply that expertise on their own problems.
Acquisitions remain a possibility. Simulations Plus traditionally has applied unrealistic criteria to prospective tyransactions, however, so it remains unknown if the right fit will be found. Quarterly cash dividends of $.05 a share are being paid in the meantime. The company itself might become an acquisition target before long. The C.E.O. controls approximately 40% of the shares.
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