Schrodinger Stock Price, News & Analysis

Schrödinger, Inc. (Nasdaq: SDGR) is a technology-enabled life sciences company that applies computational methods to molecular discovery. The company describes itself as transforming molecular discovery with a computational platform that enables the discovery of novel, highly optimized molecules for drug development and materials design. Its software platform is built on more than 30 years of research and development investment and is licensed by biotechnology, pharmaceutical and industrial companies, as well as academic institutions around the world.

Schrödinger operates through two primary activities often described as software and drug discovery. According to available information, the software business focuses on selling software to transform drug discovery across the life sciences industry and to customers in materials science industries. The drug discovery activity generates revenue from a portfolio of preclinical and clinical programs, both internally and through collaborations. The company reports that it generates revenue from sales of software solutions and from research funding and milestone payments from its drug discovery collaborations.

Founded in 1990, Schrödinger reports having approximately 800 employees operating from 15 locations globally. Across its disclosures and press releases, the company emphasizes its physics+AI computational platform, which is used to address challenges such as data scarcity and to accelerate the discovery of differentiated molecules. Schrödinger has highlighted its goal of serving as a global leader in computational molecular discovery and as an essential design engine for the industry.

Computational platform and software products

Schrödinger’s platform combines physics-based modeling with artificial intelligence and machine learning methods. The company states that this platform underpins both its software offerings and its internal and collaborative research programs. Its software is used in life sciences and materials science and is licensed to biotechnology, pharmaceutical and industrial companies, as well as academic institutions.

Within this platform, Schrödinger offers LiveDesign, described as a flexible, cloud-native working environment for discovery teams spanning both small and large molecule research. LiveDesign provides centralized access to project information for computational and medicinal chemists, including experimental data and in silico predictions, and is intended to enable streamlined workflows and collaborative decision-making. The company notes that LiveDesign allows research teams to use Schrödinger’s computational modeling tools within a single interface and that the LiveDesign ML module enables rapid AI/ML molecular property predictions by training, deploying and integrating models into collaborative drug discovery workflows.

Schrödinger also references Maestro, its graphical interface, where it has launched an AI-powered conversational interface that provides context-aware help and enables natural language commands for manipulation of the 3D workspace. The company has also advanced a predictive toxicology initiative and made a beta version available to customers, encompassing approximately 50 representative kinases in addition to multiple key anti-targets.

Physics+AI approach and scientific work

Across its communications, Schrödinger emphasizes the integration of physics-based simulations with AI and machine learning. For example, the company has described integrating Lilly’s federated learning models into LiveDesign, allowing users to combine those models with Schrödinger’s physics-based simulations to address data scarcity in AI-driven discovery. Schrödinger has also highlighted research describing computational approaches to achieve kinome-wide selectivity in drug discovery campaigns, using the discovery of selective Wee1 kinase inhibitors as a case study, and work on an advanced machine learning force field for liquid and materials properties.

The company notes that its scientists have published peer-reviewed articles in life sciences and materials science journals, including research on kinome-wide selectivity and on machine learning force fields. These publications are presented as evidence of ongoing scientific development underlying the platform.

Collaborations and co-founded companies

Schrödinger reports a number of research collaborations and relationships with companies it has co-founded. It has expanded research collaborations with Ajax Therapeutics, a company co-founded by Schrödinger, including adding a new Janus kinase (JAK) target to the collaboration. Ajax has reported positive preclinical data for AJ1-11095, a first-in-class Type II JAK2 inhibitor that received FDA orphan drug designation for the treatment of myelofibrosis.

The company has also expanded research agreements with Eli Lilly and Company (Lilly) and Otsuka Pharmaceutical Co., Ltd., adding additional undisclosed targets to existing collaborations. Schrödinger notes that it has a long history of working with partners to accelerate drug discovery and that it leverages LiveDesign’s enterprise features, including physics-based and AI/ML methods, to advance proprietary and collaborative programs.

Schrödinger highlights its historical role in the discovery of zasocitinib, a next-generation, highly selective oral TYK2 inhibitor acquired by Takeda from Nimbus, a company co-founded by Schrödinger. Zasocitinib was co-invented by Schrödinger and Nimbus by applying Schrödinger’s platform at scale and is described as one of the most advanced molecules in clinical development discovered using a predict-first paradigm. Structure Therapeutics, another company co-founded by Schrödinger, has announced initiation of a first-in-human Phase 1 clinical study of ACCG-2671, an oral small molecule amylin receptor agonist for the treatment of obesity.

In materials science, Schrödinger collaborates with Copernic Catalysts. Copernic has announced the creation of a new, more efficient ammonia synthesis catalyst, reporting reduced energy consumption in ammonia production and associated cost and environmental benefits. Schrödinger and Copernic are collaborating on this research, and Schrödinger holds an equity position in Copernic. The companies have also initiated work on designing a selective ethylene oxide catalyst.

Proprietary therapeutics portfolio

In addition to collaborations, Schrödinger reports a proprietary therapeutics portfolio. The company has presented initial Phase 1 clinical data for SGR-1505, its MALT1 inhibitor, in patients with relapsed or refractory B-cell malignancies. According to the company, SGR-1505 has been observed to have a favorable safety profile and demonstrated clinical activity, with responses observed in multiple histologies, including in patients with chronic lymphocytic leukemia and Waldenström macroglobulinemia. SGR-1505 has received Fast Track Designation from the FDA for the treatment of adult patients with Waldenström macroglobulinemia that have failed at least two lines of therapy, including a Bruton’s tyrosine kinase inhibitor, as well as Orphan Drug Designation for the treatment of Waldenström macroglobulinemia.

Schrödinger is also advancing the Phase 1 study of SGR-3515, its Wee1/Myt1 co-inhibitor, in patients with advanced solid tumors. The company reports progress in its portfolio of proprietary preclinical programs, including SGR-5573, a potent, selective, brain-penetrant inhibitor of osimertinib-resistant EGFR variants; SGR-4174, a SOS1 inhibitor; and SGR-6016, a brain-penetrant NLRP3 inhibitor development candidate. Schrödinger notes that it is advancing discovery-stage programs with first-in-class and best-in-class potential in areas such as inflammation and immunology, neurology and oncology.

Business model and revenue sources

According to its descriptions and financial disclosures, Schrödinger’s business model combines software licensing with drug discovery collaborations and internal programs. The software segment focuses on sales of software solutions that apply the company’s computational platform to drug discovery and materials science. The drug discovery activity generates revenue from research funding and milestone payments associated with collaborative programs, as well as from its portfolio of preclinical and clinical programs.

In its financial reporting, the company distinguishes between software revenue and drug discovery revenue. It has described growth in hosted and on-premise software contracts and has highlighted that increases in drug discovery revenue can be driven by recognition of revenue from upfront payments associated with advancing collaborations. Schrödinger has also discussed expense-reduction measures and a shift toward a discovery-focused therapeutics R&D model, indicating that beyond planned clinical investments to complete certain Phase 1 dose-escalation studies, it does not intend to advance discovery programs into the clinic independently, instead focusing on licensing, new ventures and discovery collaborations.

Capital markets and corporate governance

Schrödinger’s common stock trades on Nasdaq under the symbol SDGR. The company files periodic and current reports with the U.S. Securities and Exchange Commission, including Forms 8-K that describe financial results, corporate governance matters and executive arrangements. For example, the company has filed 8-K reports furnishing press releases announcing quarterly financial results and describing matters submitted to stockholder votes at its annual meeting, including the election of directors, advisory votes on executive compensation and ratification of its independent registered public accounting firm.

In another 8-K filing, Schrödinger described a separation and release of claims agreement with a former executive vice president and chief financial officer, outlining severance-related payments and benefits, equity vesting terms and other provisions. These filings illustrate the company’s ongoing obligations as a public company and provide additional detail on its governance and executive compensation arrangements.

Industry context and applications

Schrödinger is classified in pharmaceutical preparation manufacturing and the broader manufacturing sector, but its disclosures emphasize its role as a healthcare-based software company and computational platform provider. Its technology is applied in drug discovery across therapeutic areas such as oncology, inflammation and immunology, neurology and hematologic malignancies, as well as in materials science applications like catalyst design for industrial chemical processes.

The company’s collaborations and co-founded ventures illustrate how its platform can be used to design small molecule therapeutics, optimize selectivity across kinase families, and develop catalysts that may improve efficiency and reduce energy consumption in large-scale chemical production. Schrödinger’s combination of software licensing, collaborative research and proprietary programs positions it at the intersection of computational science, pharmaceuticals and advanced materials.

Investor considerations

Investors analyzing SDGR can refer to Schrödinger’s public statements for insight into its strategic priorities, which include scaling its computational platform, expanding its reach into new customer segments such as biologics, formulation and synthetic chemistry, and executing on its therapeutics portfolio through Phase 1 studies and potential strategic partnerships. The company’s financial communications discuss software revenue growth, drug discovery revenue, software gross margin, operating expenses and non-GAAP measures that adjust for equity investment-related items.

Because Schrödinger’s business spans both recurring software licensing and milestone-based drug discovery revenue, its results and outlook reflect dynamics in both the life sciences software market and the progress of collaborative and proprietary R&D programs. Public investors can monitor the company’s press releases, conference presentations and SEC filings for updates on its computational platform, partnerships, pipeline and financial performance.