A splitter theorem for induced subgraphs A homogeneous set in a graph G is a subset X of V(G), such that no vertex of V(G)\X has both a neighbor and a non-neighbor in X. Let us say that a graph is prime if it has no homogeneous set X with 1<|X|<|V(G)|. Seymour's well-known splitter theorem states that if G and H are 3-connected graphs, G is not a wheel, H is not the complete graph on four vertices, and H is a minor of G, then G can be built from H by undeleting or uncontracting one edge at a time, and so that all the graphs constructed along the way are 3-connected. We prove a similar result for the induced subgraph containment relation, replacing 3-connected with prime, undeleting and uncontracting with adding a vertex, and wheels with a certain family of bipartite graphs that we call B. We prove that if G and H are prime graphs, G is not in B, and H is an induced subgraph of G, then G can be built from H, adding one vertex at a time, and so that all the graphs constructed along the way are prime. We then use this result to prove that every n-vertex prime claw-free graph has at most n+1 simplicial cliques (a clique C of G is simplicial if for every vertex c of C, the set of neighbors of c outside of C is a clique). This allows us to test in polynomial time if a claw-free graph has a simplicial clique, answering a question of Prasad Tetali. This is joint work with Paul Seymour.