Altaris Acquires Simulations Plus for $375M in AI Drug Development Push
The healthcare PE firm will merge the modeling software company with its existing Chemical Computing Group portfolio asset.
Altaris Expands AI Drug Development Footprint
Healthcare-focused private equity firm Altaris has agreed to acquire Simulations Plus for $375 million in cash, marking a strategic expansion of its capabilities in AI-driven pharmaceutical development. The deal values the modeling and simulation software provider at $18.50 per share, representing a 26% premium over its 60-day average share price.
Simulations Plus, which describes itself as a global leader in model-informed and AI-accelerated drug development, will be merged with Chemical Computing Group following the transaction's close. Chemical Computing Group, already part of Altaris's portfolio, provides computer-aided molecular design software to pharmaceutical, biotech, and crop science companies.
Why it matters
The acquisition reflects the pharmaceutical industry's accelerating investment in computational tools that can compress drug development timelines and reduce costs. By combining two complementary software platforms under one ownership structure, Altaris is positioning itself to offer integrated solutions spanning early-stage molecular design through late-stage regulatory submissions—a full-spectrum approach that addresses the industry's growing reliance on in silico methods.
What Simulations Plus Brings
Founded three decades ago, Simulations Plus operates from Research Triangle Park, North Carolina, where its headquarters will remain post-acquisition. The company's software platforms serve major pharmaceutical and biotech companies, consumer goods firms, and regulatory agencies.
The firm's technology stack incorporates artificial intelligence, machine learning, physiologically based pharmacokinetics, and population PK/PD modeling approaches. These tools support companies throughout the drug development lifecycle, from discovery research through regulatory submissions.
Altaris's Healthcare Investment Strategy
The New York City-based Altaris manages more than $9 billion in equity capital, maintaining exclusive focus on healthcare sector investments. The firm's previous acquisitions have spanned digital health platforms, medical imaging technologies, and generic pharmaceutical operations.
The transaction is expected to close in the fourth quarter of 2024, according to details first reported by Fierce Biotech on June 16.
This is an original analysis by the Omega editorial team. Source reporting: AI Watch.
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