An Analysis of Accelrys

1
An Analysis of Accelrys

• Imran Mohiuddin

2
Pharmacopeia Inc.

• Offers products and services enabling drug and
  chemical discovery.
• Accelrys is the software development division of
  Pharmacopeia Inc.

3
Basic Information

• Accelrys was developed in the 1980s, apparently
  an international effort.
• Claims to have 600 employees worldwide.
• 50 of staff are Ph.D. scientists specializing in
  disciplines across chemistry, biology, and
  materials research.
• complemented by employees educated in software
  and systems engineering and project management.

4
Basic Information

• Main Headquarters in San Diego.
• Also maintain Centers of Excellence in
  Cambridge, UK and Bangalore, India.
• Publicly traded on NASDAQ (ACCL).
• Reported a 2003 revenue of 86 million.

5
Accelrys?

• The company specializes in providing software for
  research and development in pharmaceuticals,
  biotechnology, and chemicals.
• In addition to its biotechnology customer base,
  Accelrys also serves a wide range of other
  trades, including the automotive, aerospace,
  electronics, and energy industries.

6
Discovery Studio

• Chemistry multi-tool to aid in drug development.
• Complete range of life science applications
  spanning scientific disciplines within a single
  unified platform. Enables scientists to capture,
  manage, analyze, and use biological and chemical
  data and information within an integrated system.

7
Materials Studio

• Advanced materials simulation and informatics.
• Dramatically enhances your ability to mine,
  analyze, present, and communicate data and
  information relating to chemicals and materials.

8
Informatics

• Bioinformatics - manage, organize, apply
  biological/genome information.
• Cheminformatics - manage, organize, apply
  chemical information.
• Matinformatics - manage, organize, apply
  information related to materials.

9
Modeling, Simulation, and Analysis

• Molecular Graphics - Use 3D modeling to
  understand chemical structure
• Statistical. Correlations - Analyze data to build
  statistical models that explain and predict
  properties.
• Atomistic Simulation - Predict the behavior of
  chemical and biological systems .

10
Modeling, Simulation, and Analysis

• Quantum Mechanics - Accurate prediction of
  chemical properties and reactivity.
• Mesoscale Modeling - Predict key processes in
  complex fluids and soft materials.
• Structure Characterization - Characterize
  molecular structure, often based on data from
  analytical instruments.

11
Customers

• Academic Institutions
• Government Labs
• Pharmaceutical corporations (DuPont)
• Biotechnology companies (Genaissance)
• Chemical companies (Dow)
• Other industries, including automotive,
  aerospace, electronics, and energy.

12
Strategic Business Aliances

• IBM
• HP
• Sun Microsystems
• Oracle
• Intel
• More

13
Executives

• CEO - Mark J. Emkjer
• CEO Mark J. Emkjer, was previously President and
  Chief Operating Officer of Sunquest Information
  Systems, Inc., a 150 million information
  technology business that develops laboratory,
  radiology and pharmacy systems. Prior to joining
  Sunquest, he was President and Chief Executive
  Officer of Pace Health Management Systems, Inc.,
  a provider of clinical decision support software.

14
Executives

• CFO - John J. Hanlon
• John J. Hanlon was President and CFO of a
  publicly held e-payment service provider. He
  also spent 10 years as CFO of MDL Information
  Systems, Inc., a provider of integrated
  scientific information management systems,
  databases and services, and an additional 10
  years in public accounting at Coopers and
  Lybrand.

15
Executives

• HOT - Dr. Scott Kahn
• Received his Ph.D. in Theoretical Organic
  Chemistry from the University of California,
  Irvine, after which he did post-doctoral work at
  Cambridge University, UK. Dr. Kahn is an
  experienced software developer and created
  analysis tools for medicinal chemistry research
  and modeling.

16
Will It Work?
17
Will it Work?

• Net Income
• 2000 - 1175
• 2001 - 14,320
• 2002 - 11,627
• 2003 - 3,497