Certara (CERT) The Baird 2024 Global Healthcare Conference summary

Company overview and business model

• Focuses on biosimulation software and services to optimize drug development and clinical trial design.

• Operates a core software business and a services group, supporting clients with technical expertise and scaling.

• Regulatory and market access services comprise about 16-20% of business, supporting biosimulation offerings.

• Profitable regulatory business augments core offerings but is not targeted for rapid growth.

• Cross-sell between biosimulation and regulatory services is common among clients.

AI and technology innovation

• Launched an AI-powered regulatory writing product, achieving 30% cost savings in document drafting.

• Certara.ai platform enables secure, custom AI model training across diverse client and public databases.

• AI accelerates modeling, processes unstructured data, and supports new product development.

• AI-driven efficiency expands addressable market by speeding up project delivery.

• Focused on executing a few high-impact AI initiatives, with ongoing customer feedback.

Market trends and customer dynamics

• Recent biotech funding downturn and pharma portfolio rationalization impacted demand.

• Biotech funding rebounded in early 2024, with clinical trial starts and pipeline activity increasing.

• No evidence of market share loss; changes attributed to industry cycles and drug portfolio shifts.

• Improved sales tracking and pipeline management following public listing.

• Customer conference emphasized integrated platform vision and cross-product workflows.