Schrödinger: Surviving, If Not Thriving, In The Tricky AI Drug Discovery Field

Edmund InghamInvesting Group LeaderFollow5ShareSavePlay(13min)CommentsSummarySchrödinger, Inc. operates a physics-based computational platform for drug discovery, with a growing software business and extensive pharma partnerships.SDGR maintains a strong cash position (> $400m) and has seen drug discovery revenue rise, but software revenue declined and operating losses persist.While SDGR's platform has enabled high-profile collaborations and milestone events, most pipeline assets remain preclinical, with significant risk to milestone realization.I assign a Hold rating to SDGR, reflecting both its strategic potential and the high-risk, hit-or-miss nature of AI-driven drug discovery.Looking for higher risk/reward options trading ideas? I offer this and much more at my exclusive investing ideas service, Haggerston BioHealth. Learn More » Taras Artemenko/iStock via Getty Images Investment Overview This is my first time providing coverage of Schrödinger, Inc. (SDGR), a New York-headquartered biotech/software company that completed its Initial Public Offering ("IPO") in February 2020, raising ~$232m at $17 per share. The current traded shareThis article was written byEdmund Ingham15.04K FollowersFollowEdmund Ingham is a biotech consultant. He has been covering biotech, healthcare, and pharma for over 5 years, and has put together detailed reports of over 1,000 companies. He leads the investing group Haggerston BioHealth. The group is for both novice and experienced biotech investors. It provides catalysts to look out for and buy and sell ratings. It also provides product sales and forecasts for all the Big Pharmas, forecasting, integrated financial statements, discounted cash flow analysis and market by market analysis. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.