Certara Strategic Business Divestiture Comes At Right Time, Says Analyst - Certara (NASDAQ:CERT)

This strategic move is aimed at sharpening focus on Model-Informed Drug Development (MIDD) and Clinical Intelligence, which may be contributing to the stock's positive momentum as the broader market is experiencing gains. Certara offers biosimulation software, technology, and services for drug discovery and development. Certara Sells Unit to Veristat for $135 Million The company divested its Regulatory and Medical Writing business to Veristat for up to $135 million. In 2025, the Regulatory and Medical Writing business generated $50 million in revenue and $17 million in adjusted EBITDA, and the business includes approximately 220 employees. The transaction is expected to close in the second quarter of 2026. Certara's CEO, Jon Resnick, emphasized that this sale will enhance the company's ability to invest in its integrated MIDD platform, aiming to drive long-term value for customers and shareholders. Certara Analyst Sees Strategic Clarity, Improved Timing William Blair on Wednesday wrote, "The divestiture removes a key overhang on the stock and a lower-growth and less differentiated services asset while providing capital to reinvest in core biosimulation platforms." Analyst Max Smock added, "The timing also looks favorable, given biopharma demand is showing early signs of improvement and regulatory support for model-informed approaches continues to build, as evidenced by recent strength at competitor Simulations Plus." Analyst Ratings And Market Positioning Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $10.57. Recent analyst moves include: Keybanc: Overweight (Lowers Target to $8.00) (April 13) Barclays: Downgraded to Equal-Weight (Maintains Target to $8.00) (March 6) Barclays: Overweight (Lowers Target to $8.00) (Feb. 27) Benzinga Edge: Value 25.35, Momentum 1.88 Below is the Benzinga Edge scorecard for Certara, highlighting its strengths and weaknesses compared to the broader market: Value: Weak (Score: 25.35) -- Trading at a steep premium relative to peers. Momentum: Bearish (Score: 1.88) -- Stock is showing very weak performance indicators. The Verdict: Certara's Benzinga Edge signal reveals a weak profile, indicating challenges in both value and momentum. This suggests that while the stock may have short-term gains, longer-term performance may face hurdles. CERT Stock Price Activity: Certara shares were up 1.94% at $6.32 at the time of publication on Wednesday, according to Benzinga Pro data. Image via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.