Pharmaceutical industry software developer Simulations Plus Inc. on Tuesday said it signed an agreement to sell its wholly owned Words+ subsidiary to an Ohio company for $2.1 million.
Words+ is a legacy business founded by Simulations Plus Chief Executive Walt Woltosz and his wife that makes communications software and devices for people who can’t speak or have other communications and motor skills disabilities. Simulations Plus, which is based in Lancaster, has in recent years focused on building simulation and modeling software and consulting services for pharmaceutical research and development.
“Our shareholders have often asked why we continue to operate two very different businesses,” Woltosz said “Earlier this year, the board of directors decided to investigate the possible sale of Words+ so that we could focus our attention on the higher margin pharmaceutical software and consulting services business."
Prentke Romich Co. of Wooster, Ohio makes products for people with communications disabilities, and is better placed to grow the Word+ market, he said. Simulations Plus plans to use proceeds from the sale for possible acquisitions, product development and other corporate purposes. It expects the deal to close by the end of the month.
Simulations Plus made the announcement a few hours before the markets closed and shares closed up 13 cents, or 4 percent, to $3.15 on the Nasdaq.