Schrodinger, Inc. (SDGR)

Over the past six months, Schrödinger, Inc. stock price has declined by 13.90%. The company announced the discontinuation of a clinical program, leading to a 13.7% stock price decrease. Encouraging initial Phase 1 clinical data for SGR-1505 was reported at the European Hematology Association Annual Congress. Goldman Sachs initiated coverage on Schrödinger with a Neutral rating and a $19 price target. Inducement equity awards were announced for the newly appointed EVP. The company announced it would release its Third Quarter 2025 Financial Results on November 5. The company reported inducement grants under Nasdaq Listing Rule 5635(c)(4). Schrödinger presented at the Morgan Stanley Global Healthcare Conference. News highlighted the utilization of AI for drug discovery, favoring companies channeling capital towards AI innovation.

Schrödinger's Software segment generates predictable recurring revenue, suggesting that the demand for its software products may not exhibit significant seasonality. The Drug Discovery segment's revenue is described as "lumpy" and dependent on milestone payments from collaborations. Overall demand is driven more by ongoing R&D needs in the life sciences and materials science industries rather than predictable seasonal patterns.

Schrödinger, Inc. operates in the Healthcare and Technology sectors, focusing on Software and Life Sciences. Its business is divided into Software and Drug Discovery segments. The Software segment licenses its physics-based computational platform, generating high-margin, scalable recurring revenue, historically contributing around 80% of the company's total revenue. The Drug Discovery segment leverages the same platform to build a portfolio of preclinical and clinical programs, generating revenue from research funding and milestone payments. The company is advancing clinical-stage oncology programs, including SGR-1505, SGR-2921, and SGR-3515.

Schrödinger, Inc. has a global presence with approximately 12 to 15 offices worldwide and over 800 employees. Its headquarters are in New York, New York, USA. Other U.S. offices are in Cambridge, Framingham, Portland, and San Diego. International offices include Bangalore and Hyderabad, India; Mannheim and Munich, Germany; South Korea; and Tokyo, Japan.

Schrödinger has a strong brand reputation built on its scientific foundation and collaborations. The company has received accolades, including recognition by Newsweek as No. 1 in Pharmaceuticals and Biotech. Collaborations with entities like the Bill & Melinda Gates Foundation enhance its credibility. The announcement of encouraging initial Phase 1 clinical data for SGR-1505 positively impacted its reputation. The discontinuation of a clinical program could highlight the risks in drug discovery. The utilization of AI in drug discovery contributes to a positive perception in the market.

Schrödinger, Inc. has significant institutional ownership, with 456 institutional owners and shareholders holding between 79.05% to 98.79% of the stock. Major institutional owners include BlackRock, Inc., Bill & Melinda Gates Foundation Trust, and Vanguard Group Inc. Insider ownership is around 21.00%, and in the past three months, insiders have sold more stock than they have bought.