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Biosimulation software company Certara files for an estimated $500 million IPO

November 18, 2020

Certara, which provides biosimulation software and services used for drug development, filed on Wednesday with the SEC to raise up to $100 million in an initial public offering. However, this is likely a placeholder for a deal we estimate could raise up to $500 million.

The company uses its biosimulation software and technology to conduct virtual trials using virtual patients to predict how drugs behave in different individuals, which it believes can transform traditional drug discovery and development. Its integrated, end-to-end platform is used by more than 1,600 biopharmaceutical companies and academic institutions across 60 countries, including the top 35 biopharmaceutical companies by R&D spend in 2019.

The Princeton, NJ-based company was founded in 2007 and booked $233 million in revenue for the 12 months ended September 30, 2020. It plans to list on the Nasdaq under the symbol CERT. Certara filed confidentially on October 8, 2020. Jefferies, Morgan Stanley, BofA Securities, Credit Suisse, Barclays, and William Blair are the joint bookrunners on the deal. No pricing terms were disclosed.