By Adam L. Cataldo
Shares of Simulations Plus retreated after the company cut its revenue guidance and issued preliminary earnings that it said reflected the economic uncertainty affecting their clients.
The stock declined 13% to $23.06 after the market closed on Wednesday. Shares are down 5.2% this year through the close of the regular trading session.
"Market uncertainties surrounding future funding, drug pricing and potential tariffs are creating significant headwinds for both our pharmaceutical and biotech clients, resulting in budget reductions, project cancellations, and delays that are more pronounced than what we have experienced over the past two years," Chief Executive Officer Shawn O'Connor said.
The company provides cheminformatics, biosimulation, simulation-enabled performance and intelligence solutions, and medical communications to the biopharma industry.
Simulations guided for full-year fiscal 2025 revenue of $76 million to $80 million. That is a 14% cut from the top end of its previous range for revenue of $90 million to $93 million. Those numbers may be adjusted when third- quarter results are filed, which is expected on July 2, Simulations said.
For the third quarter, the company posted preliminary revenue results of $19 million to $20 million. Analysts expect revenue of $22.8 million, according to a survey by FactSet.
Write to Adam Cataldo at adam.cataldo@wsj.com
(END) Dow Jones Newswires
June 11, 2025 18:29 ET (22:29 GMT)
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