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Benzinga
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What's Going On With Charles River, Certara, Simulations Plus Stocks On Friday?

1. FDA shifts to advanced drug evaluation methods, reducing animal testing. 2. New Approach Methodologies (NAMs) emphasize AI and human models for testing. 3. Increased reliance on human-based models could lower drug development costs. 4. Certara (CERT) and Simulations Plus (SLP) could benefit from FDA's new guidelines. 5. Charles River Labs (CRL) faces revenue challenges due to reduced animal testing.

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FAQ

Why Bullish?

The FDA’s shift in drug evaluation favors companies using NAMs like CERT. Historically, regulatory changes promoting innovative testing often lead to increased market valuation for compliant firms.

How important is it?

The FDA's regulatory change significantly impacts drug development timelines, cost, and safety, directly benefiting CERT's business model.

Why Long Term?

As the FDA's new guidelines roll out, companies adopting NAMs are likely to gain a competitive edge in the market over time, leading to sustained growth.

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