(SDGR) Schrodinger - Ratings and Ratios

Schrödinger, Inc. (NASDAQ:SDGR) is a leader in computational chemistry, leveraging its proprietary physics-based platform to accelerate the discovery of novel molecules for both pharmaceuticals and materials science. The company operates through two primary segments: Software and Drug Discovery. On the software side, Schrödinger licenses its platform to biopharma companies, academic institutions, and government labs, enabling them to design and optimize molecules with greater speed and accuracy than traditional methods. This software-centric approach has become increasingly critical in an industry where the cost and time required to bring a drug to market can exceed a decade and billions of dollars.

In its Drug Discovery segment, Schrödinger is building a pipeline of preclinical and clinical programs, both independently and through partnerships. One notable collaboration is with Novartis, where they are co-developing multiple candidates. This dual approach—selling software tools while also developing its own drug assets—positions Schrödinger as both a tools provider and a potential drug developer, creating multiple revenue streams and strategic options. Financially, Schrödinger operates with a market cap of $1.8 billion, reflecting investor confidence in its platform and growth potential. The company’s high P/S ratio of 9.36 suggests it’s still in a growth phase, with revenue scalability expected to improve as its software adoption expands and its drug pipeline advances.