8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 10, 2007

PHARSIGHT CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	000-31253	77-0401273
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification Number)

321 E. Evelyn Ave. 3^rd Floor

Mountain View, CA 94041

(Address and zip code of principal executive offices)

(650) 314-3800

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01. Regulation FD Disclosure

Pharsight Corporation will deliver investor and securities analyst presentations that include the slides filed as Exhibit 99.1 to this Current Report on Form 8-K, which are incorporated herein by reference.

This information is not “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not incorporated by reference into any filing made pursuant to the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended. The furnishing of these slides is not intended to constitute a representation that such furnishing is required by Regulation FD or that the materials they contain include material information that is not otherwise publicly available.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits

99.1 Slides to be shown during investor and securities analyst presentations.

-2-

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

PHARSIGHT CORPORATION
By:	/s/ William Frederick
	William Frederick
	Senior Vice President and Chief Financial Officer

Date: May 14 , 2007

-3-

EXHIBIT INDEX

Exhibit Number
99.1	Slides to be shown during investor and securities analyst presentations.

-4-

EX-99.1

Confidential ©

Pharsight Corporation

Pharsight Corporation

Investor Presentation

4th Quarter Fiscal 2007 Update

March 31, 2007

Shawn O’Connor

President,  Chairman and CEO

Will Frederick

CFO

Exhibit 99.1

2

Copyright ©

2007 Pharsight Corporation.   All rights reserved.

Forward-Looking Statements

This presentation includes forward-looking statements, including statements regarding our

financial

model,

growth

opportunities

and

strategic

investments,

our

market

position,

the

demand and market opportunity for our products and services, financial and product

performance, expected benefits to customers from the use of our products, our customer base

and our expectations for revenue, net cash flow, gross margin and net income for the fiscal year

ending

March

31,

2008.

These

forward-looking

statements

involve

risks

and

uncertainties,

and

factors that could cause actual results to differ materially include the following: uncertainties

involved in pharmaceutical drug development, changes in government regulation of the

pharmaceutical industry, changes in the demand for our products and services, changes in our

research and development focus or operating strategies, the failure to develop new products and

services

or

to

keep

pace

with

technological

changes,

the

failure

of

the

market

for

our

products

and

services

to

develop

as

expected,

or

for

new

customers

beyond

large

pharmaceutical

customers, who form a large component of our client base, to adopt our solutions, and the

failure of our products and services to meet customer’s expectations.  

Further information on potential factors that could affect actual results is included in Pharsight’s

Quarterly Report on Form 10-Q, as filed with the Securities and Exchange Commission on

February 12, 2007. All forward-looking statements are based on information available to

Pharsight as of the date hereof, and Pharsight assumes no obligation to update such statements,

whether as a result of new developments or otherwise.

3

Copyright ©

2007 Pharsight Corporation.   All rights reserved.

Overview

•

Profile

–

Founded in 1995 with IPO in August 2000

–

Offices in Mountain View, CA (HQ) and Cary, NC (R&D)

–

Global headcount approximately 90

–

Stock traded OTCBB: PHST

•

Key Industry Considerations

–

Large Pharmaceutical and biotech marketplace

–

Outsourcing of development activities escalating

–

Rising drug development costs driving need for analytical drug

development tools

–

FDA focus on modeling and simulation for Critical Path Initiative

•

Key Company Considerations

–

Leading innovator in modeling and simulation

–

Largest base of modeling and simulation skills and experience

–

Leverageable software and professional service business models

–

Industry standard software for PK/PD analysis

–

FDA Cooperate Research and Development Agreement (CRADA)

4

Copyright ©

2007 Pharsight Corporation.   All rights reserved.

Pharsight Capabilities

Supporting Efficient Drug Development

Software Products

Enterprise and desktop products

for analyzing, presenting and

storing drug development data.

Improve productivity and

compliance

Strategic Consulting

Services

Consulting expertise in model-

based drug development and

decision-making.

Quantify your decision-

making

Metadata

Modeling-ready data sets

complied by experts from public

source medical & scientific

literature.

Understand the competitive

landscape

Reporting and

Analysis Services

High quality NCA and population

PK reporting and analysis.

Outsource reporting and

analysis

Training

A variety of courses teaching

Pharsight software tools and

model-based drug development

skills.

Build your capabilities

5

Copyright ©

2007 Pharsight Corporation.   All rights reserved.

FDA

and

Pharsight

sign

CRADA

-

June

2006

•

Pharsight will make available a comprehensive suite of software tools, including: 

Pharsight

®

Knowledgebase

Server™

(PKS™),

PKS

Validation

Suite™,

WinNonlin

®

Validation

Suite™,

Trial

Simulator™-and

Drug

Model

Explorer™

(DMX™).

•

FDA

will

use

the

Pharsight

tools

to

review

clinical

trial

data,

especially

for

clinical

pharmacology and clinical safety reviews, and will provide feedback to Pharsight.

FDA

Unveils

Critical

Path

Opportunities

List

-

March

2006

•

#51 Clinical Trial Simulation.  Clinical trial simulation can predict efficient

designs for development programs that reduce the number of trials and patients,

improve

decisions

on

dosing,

and

increase

informativeness.

Stakeholders

are

looking

for

first

steps,

such

as

identification

of

tools

and

best

practices.

FDA

Issues

Critical

Path

Paper

-

June

2004

•

The Critical Path Initiative is FDA's effort to stimulate and facilitate a national

effort to modernize the scientific process through which a potential human drug,

biological product, or medical device is transformed from a discovery or "proof of

concept" into a medical product.

FDA Influence

Driving Market Adoption

6

Copyright ©

2007 Pharsight Corporation.   All rights reserved.

Market Opportunity

Drug Development Cost and Timeline

1

2002 Estimated Global Pharma and Biotech R&D Spending by Category:  BioPharm International, March 2003

2

PhRMA 2003 Industry Profile, March 2003

3

Bain and Co, December 2003

Research

$25 Billion

1

Significant Productivity

Increase and Investment

Clinical Development

$48 Billion

1

Productivity Continues

To Decline

•

High throughput screening

•

Combinatorial chemistry

•

Genomics

•

Rational drug design

•

Long, risky and complex

process

•

Of 5,000 screened

compounds: 250 enter

preclinical testing, 5

enter clinical testing and

1

is

approved

by

FDA

2

•

Avg. cost to develop new

drug

$802M

2

–

$1.7B

3

•

Only 3 out of 10 drugs

produce revenues that match

or

exceed

R&D

costs

2

7

Copyright ©

2007 Pharsight Corporation.   All rights reserved.

Market Opportunity

Software Product Diversification

•

Customers expanding their use of the Pharsight family of

products can create $100K to $500K+ in initial revenue and

increases of 15x in ongoing maintenance revenue

WinNonlin Licenses

Before

Diversification

4 WNL Pro Users

$6K maint.

$90K+ maint.

0       1       2       3       4      5       6       7       8

WNL Enterprise

WNL Val Suite

IVIVC Toolkit

AutoPilot

PKS

PKS Val Suite

DMX

After Diversification

$6K

$90K

$100K to $500K+

initial purchase

8

Copyright ©

2007 Pharsight Corporation.   All rights reserved.

Current Customers

Includes All Top 50 Pharma Companies

Confidential ©

Pharsight Corporation

Software Products

10

Copyright ©

2007 Pharsight Corporation.   All rights reserved.

•

Analytics

–

WinNonlin

®

–

WinNonMix

®

–

Trial Simulator™

–

IVIVC Toolkit™

for WinNonlin

•

Data Management & Compliance

–

Pharsight

®

Knowledgebase Server™

–

PKS Reporter

–

WinNonlin AutoPilot™

•

Validation

–

WinNonlin Validation Suite™

–

PKS Validation Suite™

•

Model Visualization

–

Drug Model

Explorer

®

(DMX

®

)

Software Products

Overview

11

Copyright ©

2007 Pharsight Corporation.   All rights reserved.

•

Over 1,250 active software customers

•

All

Top

50

Pharma

2

license

at

least

one

of

our

software

products

•

Our software applications are licensed for use on more than 6,700

desktops in industry and academia

•

13

of

the

Top

50

Pharma

2

are

PKS

TM

customers

–

19

total

PKS

TM

customers

–

Over 875 seats sold

•

7

of

the

Top

50

Pharma

2

are

DMX

TM

customers

–

8

total

DMX

TM

customers

–

Over 275 seats sold

Software Products

Market Acceptance

1

1

As of March 31, 2007

2

Pharma Exec 50:  Pharmaceutical Executive, May 2006

12

Copyright ©

2007 Pharsight Corporation.   All rights reserved.

Software Products

Return on Investment Example

“Within 2 years of (implementing Pharsight’s WinNonlin automation and other

measures) the two people conducting the routine pharmacokinetic studies

had completed 45 studies in 1 year.”

(previous staff of 19 for the same work)

“The cycle time to issue final reports decreased from 16 months on average

to less than 3 months.”

Richard Lalonde, PharmD, Executive Director, Department of Clinical Pharmacokinetics and

Pharmacodynamics,

Pfizer

Global

Research

and

Development,

Ann

Arbor,

Mich.

et

al,,

from

the

International

Journal

of

Pharmaceutical

Medicine

18(1):13-17,

2004

Higher productivity

Faster cycle times

Pfizer

13

Copyright ©

2007 Pharsight Corporation.   All rights reserved.

Software Products

WinNonlin

®

(“WNL™”)

•

Key Benefits

–

Used to simulate effects of different dosing regimens and changes in

pharmacokinetic parameters required in regulatory submissions  

–

Increases productivity in modeling, analysis and reporting activities

•

Potential Growth Drivers

–

Maintain market share under current subscription model via renewals

–

Provide upgrade path to support incremental new revenue opportunity

•

Sales Model

–

Subscription license

–

Low-cost inside sales force

–

Distributor in Asia

•

ASP approx. $5,000 per seat

•

Strong recurring revenue with >90% renewal

Industry Gold-Standard for Pharmacokinetic (“PK”),

Pharmacodynamic (“PD”) Modeling, and Non Compartmental Analysis

14

Copyright ©

2007 Pharsight Corporation.   All rights reserved.

Software Products

WinNonMix

®

(“WNM™”)

Nonlinear Mixed Effects (Population) Analysis Software Application

•

Key Benefits

–

Extensive built-in library of PK, PD and PK-PD models

–

NONMEM data import wizard

–

Built-in report-ready graphics capability

–

Estimation algorithms for sparse and for rich data sets

–

Maximum likelihood or restricted maximum likelihood

•

Potential Growth Drivers

–

Increase interoperability with other Pharsight tools

–

Provide upgrade path, expanded utility

•

Sales Model

–

Subscription license

–

Low-cost inside sales force

–

Distributor in Asia

•

ASP approx. $7,500 per seat

•

Strong recurring revenue with >95% renewal

15

Copyright ©

2007 Pharsight Corporation.   All rights reserved.

State-of-the-Art Clinical Trial Design and Simulation Software

•

Key Benefits

–

Minimize risk of trial design

–

Formalize assumptions

–

Quantify uncertainty

–

Reduce cost of clinical trials and drug development time-to-market

•

Potential Growth Drivers

–

Increase potential interoperability with other Pharsight tools

–

Increased emphasis on trial simulation in the FDA critical path initiative

•

Sales Model

–

Subscription license

–

Low-cost inside sales force

–

Distributor in Asia

•

ASP approx. $25,000 per seat

Software Products

Trial Simulator™

16

Copyright ©

2007 Pharsight Corporation.   All rights reserved.

In vivo-in vitro correlations (IVIVC)

•

Key Benefits

–

Speed  formulation development

–

Improve success of bioequivalence studies

–

Reduce expense and time needed for in vivo studies

•

Potential Growth Drivers

–

Increase interoperability with other Pharsight tools

–

Enlarge the WinNonlin user base and expand PKS demand

•

Sales Model

–

Subscription license

–

Low-cost inside sales force

–

Distributor in Asia

•

ASP approx. $3,000 per seat

(requires WinNonlin license)

Software Products

IVIVC Toolkit™

for WinNonlin

17

Copyright ©

2007 Pharsight Corporation.   All rights reserved.

Software Products

Pharsight

®

Knowledgebase Server™

(“PKS™”)

•

Key Benefits

–

Dramatically improves data management and data access

–

Increases productivity in analysis and reporting tasks

–

Supports compliance

with

FDA

requirements

for

electronic

records

and

signature,

CFR 21 part 11

•

Potential Growth Drivers

–

Installed base

of

current

large

pharma

clients

–

expand

seat

count

within

current

clients

–

Optimize adoption pattern of industry

–

Provide upgrade path, expanded utility

•

Sales Model

–

Subscription and perpetual license

–

Software license plus services

–

Direct sales force

–

Distributor in Asia

•

ASP approx. $15,000 per seat

Enterprise Data Management Systems for Secure Storage and Management

of PK/PD Data

18

Copyright ©

2007 Pharsight Corporation.   All rights reserved.

Streamlining Routine Clinical PK Analyses and Reporting

•

Key Benefits

–

Capture and implement best practices and business rules within a

department and across sites.

–

Standardize content and formatting of analyses and reports to reduce

authoring/review effort and improve consistency and quality.

–

Automate analyses with computer-based scripts to ensure repeatability and

traceability.

–

Decrease reporting backlog and submission delays, and increase ability to

respond to requests for interim analyses.

–

Free-up PK scientific resources to focus on trial simulation, population PK

modeling and model-based drug profile exploration.

–

Extend PK automation gains to regulatory-compliant workflows and report

generation through integration with PKS and PKS Reporter.

•

Potential Growth Drivers

–

Extend AutoPilot to preclinical analysis and reporting

•

Sales Model

–

Subscription and perpetual license

–

Software license plus services

–

Direct sales force

–

Distributor in Asia

•

ASP approx. $35,000 per seat (five seat purchaser)

Software Products

WinNonlin AutoPilot™

UNDER

UNDER

DEVELOPMENT

DEVELOPMENT

19

Copyright ©

2007 Pharsight Corporation.   All rights reserved.

Software Products

Drug Model Explorer™

(“DMX

®

”)

•

Key Benefits

–

Facilitates more

efficient

collaboration

within

project

teams

to

explore

key

drug

attributes, and their respective uncertainties

–

Enables more flexible scenarios and generates views of program data from

underlying model outputs and simulated responses over defined problem-space

–

Pfizer received Bio-IT World 2005 Best Practices Award for Computational Biology &

Informatics

with

use

of

DMX

to

aid

decision

making

1

•

Potential Growth Drivers

–

Expand client base of early adopters

–

Expand utility and footprint of application

–

Increase interoperability with other

Pharsight tools

–

Bundling with strategic consulting services

•

Sales Model

–

Subscription and perpetual license model

•

ASP approx. $10,000 per seat

Software-Based Communication Technology, Designed to Facilitate

Quantitative Decision-Making in Drug Development

1

Bio-IT World Best Practices 2005:  Bio-IT World, August 2005

Confidential ©

Pharsight Corporation

Strategic Consulting Services

21

Copyright ©

2007 Pharsight Corporation.   All rights reserved.

•

World-class experts in clinical

pharmacology, PK/PD, decision

analysis, and statistics

•

Rich mix of drug development

experience from industry,

academic and consulting

backgrounds

•

Consulting engagements

completed in all major

therapeutic areas and indications

•

Projects in all phases of the

regulatory timeline

•

Serving all major drug

development geographies,

including US, EU, and Japan

Strategic Consulting Services

Overview

22

Copyright ©

2007 Pharsight Corporation.   All rights reserved.

•

Over

40 active consulting clients in Fiscal 2007

–

19

of

the

Top

50

Pharma

2

were

active

consulting

clients

–

24 new consulting clients

•

Over 140 projects engaged during Fiscal 2007

•

Diverse Customer Workplans

–

Hourly engagements to annual engagements

–

Several thousand dollars to multi-million dollars

–

Time-and-material based or milestone based

Strategic Consulting Services

Market Acceptance

1

1

As of March 31, 2007

2

Pharma Exec 50:  Pharmaceutical Executive, May 2006

23

Copyright ©

2007 Pharsight Corporation.   All rights reserved.

Strategic Consulting Services

Broad Modeling Capabilities

Pre-

Clinical

Pain

Ophthamology

Dermatology

Anti-infectives

Anti-inflammatory

Phase

II

Phase

III

Phase I

Phase

IV

Genito-urinary

Immunomodulation

Oncology

Respiratory

Gastro-intestinal

Endocrine

Central Nervous

System

Cardiovascular

Therapeutic Area

Quantitative decision support provided on multiple projects in all phases of

drug development across most major therapeutic areas and for a variety of

indications

24

Copyright ©

2007 Pharsight Corporation.   All rights reserved.

Strategic Consulting Services

Customer Value

•

A complete analysis of your next decision and a

recommendation

•

Quantification of the size of the risk you take in your

next decision

•

Information on your project of the type increasingly

requested by the FDA

•

Access to some of the world’s leading experts in drug

development science

If prediction looks like this,

Continue Current Phase

If prediction looks like this,

Stop Development

Not Competitive

Response at Given Dose

Competitive

If prediction looks like this,

Proceed to Next Phase

Standard of Care

25

Copyright ©

2007 Pharsight Corporation.   All rights reserved.

Strategic Consulting Services

Growth Drivers

•

Industry Factors

–

Increased acceptance of modeling and simulation to achieve

efficient drug development decision making

–

FDA Critical Path Initiative advocates increased use of

modeling and simulation to overcome poor development

productivity

–

Increased usage of outsourced capabilities

•

Internal Factors

–

Focused effort and investment to diversify client base showing

momentum

–

Expanding scope and increasing efficiency of consulting

engagements

–

Broad therapeutic area expertise

–

Advanced modeling and simulation skills, knowledge and

experience

26

Copyright ©

2007 Pharsight Corporation.   All rights reserved.

Strategic Consulting Services

Revenue Diversification

1

FY07

52%

48%

Top 2 clients

Others

FY06

62%

38%

Top 2 clients

Others

$10.9M Revenue

$9.3M Revenue

Successful Diversification Efforts with Reduced Revenue Dependency on “Top

2 Clients”

1

As of March 31, 2007

27

Copyright ©

2007 Pharsight Corporation.   All rights reserved.

Strategic Consulting Services

Return on Investment Example

Aventis turned to a computer model from …

Pharsight. Using its own

animal and human test data, Aventis was able to simulate later-stage

clinical trials. Based on that simulation, “we stopped funding development

of the compound. The ratio between the therapeutic benefit and side effect

demonstrated that this compound was not as beneficial as Evista.”

Douglas estimates that the Pharsight computer model saved Aventis $50M

to $100M, the cost of later-stage clinical trials.  “We were able to switch to

another project with a greater chance of success.”

Frank Douglas, former Aventis Chief Scientific Officer and Executive VP of Drug Innovation and

Approval 

Forbes ASAP,

10/7/02

Faster failure

Higher productivity

sanofi-aventis

Confidential ©

Pharsight Corporation

Reporting and Analysis Services

29

Copyright ©

2007 Pharsight Corporation.   All rights reserved.

•

Reporting and

analysis of early-

phase, regulatory-

required studies

•

Complements

software and

Strategic

Consulting

Services

•

New services

create deeper

relationships with

our clients

•

Leverages value

of Pharsight brand

in PK/PD

•

Provides a new

source of revenue

and margin

Reporting and Analysis Services

Overview

30

Copyright ©

2007 Pharsight Corporation.   All rights reserved.

Reporting and Analysis Services

Growth Drivers

•

Industry Factors

–

Large, established market

–

Increased usage of outsourced capabilities

–

New requirements for analysis-intensive studies

–

Growing diversification to new delivery platforms

•

Internal Factors

–

Existing relationships with software and Strategic

Consulting Services customers provide selling synergies

for additional services

–

Opportunity to deliver better and faster using Pharsight

software for automated, regulatory-compliant reporting

and analysis

Confidential ©

Pharsight Corporation

Financial Overview

32

Copyright ©

2007 Pharsight Corporation.   All rights reserved.

Accomplishments and Guidance

FY07 Accomplishments

•

Revenue growth

–

Y/Y revenue growth of 10%

–

4

th

consecutive year of revenue growth

•

Gross Margin

–

69% of revenue

•

Profitability

–

Net income of $2.7M (11% of

revenue), excluding SFAS 123R

expense

–

Diluted EPS of $0.05, net of $0.04 for

SFAS 123R expense

–

3

rd

consecutive year of profitability

•

Positive annual net cash flow

–

$3.8M increase in cash

–

3

rd

consecutive year of positive cash

flow

FY08 Guidance

•

Continued revenue growth

–

Y/Y revenue growth of approx. 10% to

15%, or approx. $27.5M -

$29M

•

Gross Margin

–

Approx. 64% to 68% of revenue

•

Continued profitability

–

Net income of approx. 8% -

12% of

revenue, excluding SFAS 123R

expense

–

Diluted EPS of $0.03 -

$0.07, net of

approx. $0.04 for SFAS 123R expense

•

Continued positive annual net

cash flow

33

Copyright ©

2007 Pharsight Corporation.   All rights reserved.

Summary Income Statements

(in thousands)

Consol.

SPBU

SCS

Consol.

SPBU

SCS

Revenue

25,092

14,238

10,854

22,742

13,449

9,293

Y/Y growth

10%

6%

17%

1%

11%

-12%

Cost of revenue

7,731

1,383

6,348

7,699

1,789

5,910

Gross profit

17,361

12,855

4,506

15,043

11,660

3,383

Gross margin

69%

90%

42%

66%

87%

36%

Operating expenses

15,715

10,809

4,906

14,461

9,885

4,556

Operating income

1,646

2,046

(400)

582

1,775

(1,173)

Net income

1,871

530

FY07

FY06

Note:  FY07 Net income reflects $831 for stock-based compensation expense included in Cost of revenue and

Operating expenses

34

Copyright ©

2007 Pharsight Corporation.   All rights reserved.

Summary Balance Sheets

(in thousands)

March 31,

2007

March 31,

2006

Cash & short term investments

14,665

$   

10,832

$   

Accounts receivable, net

3,087

4,585

Total current assets

18,275

15,715

Total assets

19,995

$   

17,786

$   

LIABILITIES & STOCKHOLDERS' DEFICIT

A/P & accrued expenses

4,389

$     

3,981

$     

Deferred revenue

8,289

7,605

Notes payable

292

1,519

Total current liabilities

12,970

13,105

Deferred revenue - long term

--

54

Notes payable - long term

100

392

Redeemable conv. pref. stock

7,119

6,641

Stockholders deficit

(373)

(2,659)

Total liabilities & stockholders' deficit

19,995

$   

17,786

$   

ASSETS

35

Copyright ©

2007 Pharsight Corporation.   All rights reserved.

Annual Revenue by Business Unit

(in thousands)

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

FY04

FY05

FY06

FY07

FY08 Guidance

Software Products

Strategic Consulting

Guidance ($27.5M - $29M)

36

Copyright ©

2007 Pharsight Corporation.   All rights reserved.

Quarterly Revenue by Business Unit

(in thousands)

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

Q4 FY06

Q1 FY07

Q2 FY07

Q3 FY07

Q4 FY07

Software Products

Strategic Consulting

37

Copyright ©

2007 Pharsight Corporation.   All rights reserved.

Annual Gross Profit

(in thousands)

$0

$2,500

$5,000

$7,500

$10,000

$12,500

$15,000

$17,500

FY03

FY04

FY05

FY06

FY07

38

Copyright ©

2007 Pharsight Corporation.   All rights reserved.

Annual Operating Income

(in thousands)

-$12,500

-$10,000

-$7,500

-$5,000

-$2,500

$0

$2,500

$5,000

FY03

FY04

FY05

FY06

FY07

Note:  FY07 Operating Income reflects $831 for stock-based compensation expense

39

Copyright ©

2007 Pharsight Corporation.   All rights reserved.

Annual Operating Cash Flow

(in thousands)

-$8,000

-$6,000

-$4,000

-$2,000

$0

$2,000

$4,000

$6,000

FY03

FY04

FY05

FY06

FY07

40

Copyright ©

2007 Pharsight Corporation.   All rights reserved.

Equity Overview

•

Common Shares Outstanding

1

20 million

•

Preferred Shares Outstanding

1

8 million

–

1.8 million Series A and 0.2 million Series B

–

Conversion ratio to Common at 4:1

•

Common Equivalent Shares (as converted)

1

28 million

•

PIPE Financing 6/02 and 9/02 = $7.5 million

–

1.8 million Units = 1 share Series A redeemable convertible stock + 1 warrant

–

Warrants exercisable for 1 common share @ $1.15

–

Preferred dividend rights of 2% quarterly in cash or Series B shares

–

Conversion:

•

Upon consent of at least 75% of preferred holders, or

•

Upon close of public offering of at least $3.006 per share and proceeds of $40M

–

Redemption:

•

Upon election of at least 75% of preferred holders, or at Pharsight’s option, after June

26, 2007 (5

th

anniversary of initial issuance)

•

Price of $4.008 per share

1

As of March 31, 2007

41

Copyright ©

2007 Pharsight Corporation.   All rights reserved.

Significant

Shareholders

1

Alloy Entities

16% ownership

McKesson Corp.

14% ownership

Sprout Entities

9% ownership

Weiss Peck & Greer

6% ownership

Wellington Management Co.

4% ownership

Perritt Capital Management

1% ownership

Lewis Asset Management Corp.

1% ownership

1

Excludes Preferred Shares outstanding

42

Copyright ©

2007 Pharsight Corporation.   All rights reserved.

Executive Team

Shawn M. O’Connor

President, Chairman and Chief Executive Officer

QRS, Diasonics Ultrasound, Peat Marwick

Will Frederick

Chief Financial Officer

Versata, Clarent, ACT Networks, Disney

Daniel Weiner, PhD

Chief Technology Officer

IVAX, Merrell Dow, Syntex, Quintiles 

James Hayden

SVP Global Sales

Accelrys, Bio-Rad Laboratories, Raytheon

Mark Hovde

SVP Marketing

Hovde Associates, Fast Track Systems, DataEdge

43

Copyright ©

2007 Pharsight Corporation.   All rights reserved.

Summary

•

Current pharmaceutical market trends look favorable…

•

Increasing mindshare for quantitative-based modeling and

simulation…

•

FDA's call for more modeling and simulation in the Critical Path

Initiative…

•

Financially stable and leveragable business model…

All support our drive towards expanding

Pharsight’s market footprint and continuing

sustainable revenue growth and profitability

44

Copyright ©

2007 Pharsight Corporation.   All rights reserved.

All contents Copyright ©2007 Pharsight Corporation.  All rights reserved.

The copyright for this document is owned by Pharsight Corporation.

No

part

of

this

document

may

be

reproduced

or

transmitted

in

any

form

or

by any means, electronic or mechanical, including photocopying, for any

purpose, without the express written permission of Pharsight Corporation. 

WinNonlin

®

,

WNL

TM

,

WinNonMix

®

,

WNM

TM

,

Trial

Simulator

TM

,

IVIVC

Toolkit

TM

,

Pharsight

Knowledgebase

Server

TM

,

PKS

TM

,

WinNonlin

AutoPilot

TM

,

Drug

Model

Explorer

TM

,

DMX

®

,

WinNonlin

Validation

Suite

TM

,

PKS

Validation

Suite

TM

and

Pharsight

®

are

trademarks

or

registered

trademarks

of

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Corporation.

All other brand and product names are trademarks or registered trademarks

of their respective holders.

Proprietary Notice