Certara Maps AI Strategy, Cost Cuts and Reorganization Under New CEO
Certara reorganized around two business units and outlined plans to embed artificial intelligence across its product suite and internal operations during a presentation at the Jefferies 2026 Global Healthcare Conference. CEO Jon Resnick, who took the role on January 1, said the company is targeting clearer growth engines and better execution.
The company split its strategy into two units: ACE (accelerating clinical evidence) and MID3 (model-informed drug development and discovery). ACE manages data from protocol through regulatory submission using products including Phoenix, Pinnacle, CoAuthor and GlobalSubmit. MID3 uses computational biology and biosimulation to change how clinical development happens, with Resnick noting the company sees growth opportunities in drug discovery.
Sales Shift Toward Direct Scientist Engagement
Resnick said Certara often loses deals not to competitors or price, but because clients stick with traditional clinical development methods. He identified "getting its scientists directly in front of decision-makers at client companies" as the company's highest success indicator.
Certara brought together PopPK, QSP and PBPK teams along with related technologies to respond to client problems more quickly. The company also changed incentive structures to reduce barriers between technology and services groups.
Resnick said the clinical trial market represents a $230 billion addressable opportunity. Regulators are increasingly open to newer approaches beyond traditional methods, he said, particularly in areas like pediatrics, pregnancy and lactation, and organ impairment dosing.
AI Integration Across Products and Operations
Certara is embedding AI into existing products, creating new modules and exploring native AI products. The company cited Certara IQ in QSP, CODEx as a data component, D360 re-platforming, cloud-based initiatives and AI-focused reporting in the cloud version of Phoenix.
The company appointed Dr. Krishnan Raman as chief AI officer and tasked him with leading work on a unifying data layer that would allow Certara's software and technology products to communicate more effectively. Resnick said the Vyasa acquisition helped create an "AI-first mindset" inside the company.
Chief Financial Officer John Gallagher said Certara is also using AI internally across R&D, finance, HR and IT to find productivity gains that could offset R&D investment.
Financial Performance and Cost Focus
First-quarter software revenue grew 7%, exceeding expectations, and Certara now views its software plan for the year as "a bit better" than previously expected. Trailing 12-month bookings for services indicate low-single-digit growth, Gallagher said.
Certara continues to pursue about $10 million in cost reductions while maintaining R&D investment at roughly 10% to 11% of sales. Efficiencies may come from cost of sales, G&A, sales and marketing, and back-office consolidation.
Portfolio Shift and M&A Strategy
Resnick said Certara is no longer primarily a small-molecule company. Roughly 60% of the business is small molecule and 40% is large molecule. Products including Phoenix and Pinnacle are largely agnostic to molecule type, while Simcyp is approximately 30% large molecule today.
On acquisitions, Resnick said M&A is "not the near-term priority." The company's focus is on improving returns from organic investment and getting existing teams operating effectively. Certara would not rule out acquisitions that accelerate a near-adjacent market, but organic execution takes priority.
AI for Executives & Strategy | AI for Healthcare
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