• The Ansys for drug discovery.

• The Illumina for drug design.

• Twilio for molecular discovery.

• Schrödinger Software Platform: A comprehensive computational platform integrating physics-based modeling and machine learning to accelerate drug discovery and materials science research.
• Drug Discovery Partnerships & Programs: Collaborative efforts with pharmaceutical and biotech companies, and internal programs, leveraging their software to identify and advance novel drug candidates.
• Materials Science Solutions: Application of their computational platform to design and optimize novel materials with specific properties for diverse industrial applications.

Major Customers of Schrodinger (SDGR)

Schrodinger (SDGR) primarily sells its computational platform and drug discovery services to other companies and institutions, rather than directly to individuals. Their major customers span the pharmaceutical, biotechnology, and materials science industries, as well as academic institutions.

While Schrodinger's software platform is licensed by "19 of the top 20 pharmaceutical companies" globally (based on 2022 revenue), specific customer names for general software licenses are not always publicly disclosed. However, Schrodinger has publicly announced significant drug discovery partnerships and collaborations with several major pharmaceutical companies, which represent key customer relationships:

• Bristol Myers Squibb (NYSE: BMY)
• Sanofi (NASDAQ: SNY)
• AstraZeneca (NASDAQ: AZN)
• Takeda Pharmaceutical Company Limited (NYSE: TAK)
• Novartis (NYSE: NVS)

In addition to these major pharmaceutical partners, Schrodinger's broader customer base for its software platform includes hundreds of other biotechnology companies, academic institutions, and companies in diverse industries such as agrochemical, aerospace, and energy.

Amazon.com, Inc. (AMZN)

Ramy Farid, President & Chief Executive Officer

Ramy Farid was appointed CEO of Schrödinger in January 2017, having joined the company in 2002. He holds a Ph.D. in Chemistry from the California Institute of Technology and a Bachelor's degree from the University of Rochester. Dr. Farid began his career in academia as an assistant professor in the chemistry department at Rutgers University. He has served on the boards of several biotechnology companies, including Nimbus Therapeutics, which he helped found in 2009. He also served on the board of Morphic Therapeutic, Inc., which was later acquired by Eli Lilly and Company in August 2024. Dr. Farid led Schrödinger through its initial public offering in 2020.

Richie Jain, Executive Vice President, Chief Financial Officer, and Treasurer

Richie Jain was appointed Executive Vice President, Chief Financial Officer, and Treasurer in May 2025. Prior to this role, he was Schrödinger's Senior Vice President, Strategic Finance, and Head of Corporate and Business Development since February 2024. Before joining Schrödinger, Mr. Jain served as a Managing Director in healthcare investment banking and mergers & acquisitions at Morgan Stanley & Co. LLC. His earlier experience includes working as an electrical engineer at Boston Scientific Corporation. He earned a B.S. in Electrical Engineering from the University of Michigan and an MBA from the University of Chicago Booth School of Business.

Karen Akinsanya, President, Head of Therapeutics R&D and Chief Strategy Officer, Partnerships

Karen Akinsanya joined Schrödinger in 2018. She leads the company's therapeutics group, overseeing preclinical drug discovery, translational research, early clinical development, and drug discovery business development and collaborations. Dr. Akinsanya previously spent over a decade at Merck Research Labs, where she held various roles, including positions in clinical pharmacology and later in discovery preclinical & early development, and business development. She received her Ph.D. in endocrine physiology from the Royal Postgraduate Medical School at Imperial College London. After post-doctoral training, she worked at Ferring Pharmaceuticals in R&D.

Robert Abel, Executive Vice President, Chief Computational Scientist

Robert Abel serves as the Executive Vice President and Chief Computational Scientist at Schrödinger. In this role, he is involved in the computational science aspects crucial to Schrödinger's mission of developing computational tools for drug discovery and materials science.

Patrick Lorton, SVP & Chief Technology Officer

Patrick Lorton is the Senior Vice President and Chief Technology Officer at Schrödinger, having started with the company in April 2017. As CTO, he is responsible for the technological direction and development of Schrödinger's computational platform.

Schrodinger (SDGR) operates in two main segments: Software and Drug Discovery. The company's physics-based computational platform is used for molecular discovery in both drug development and materials science.

Addressable Markets:

• In-Silico Drug Discovery (Software and Services)

  • The global in-silico drug discovery market was valued at approximately USD 3.6 billion to USD 4.7 billion in 2024.

  • This market is projected to grow to approximately USD 5.7 billion to USD 7.2 billion by 2030, with a Compound Annual Growth Rate (CAGR) ranging from 10.6% to 12.2% during the forecast period.

  • North America held the largest share of the global in-silico drug discovery market, accounting for approximately 45% to 50% in 2023 and 2024.

• Material Informatics (Materials Science Software)

  • The global material informatics market size was estimated at approximately USD 134.6 million in 2023 and USD 170.4 million in 2025.

  • It is projected to reach between USD 390.8 million and USD 410.4 million by 2030, with a CAGR ranging from 16.5% to 19.2% during the forecast period.

  • North America is expected to hold the largest market share in the global material informatics market.

Schrodinger (SDGR) is anticipated to drive future revenue growth over the next 2-3 years through several key strategies:

1. Increased Adoption and Scale-Up of its Computational Software Platform: Schrodinger expects continued high demand for its leading computational platform within the industry. The company has observed customers increasingly adopting its software solutions as foundational to their drug discovery efforts. Software revenue growth is projected to range from 8% to 13% for the fiscal year ending December 31, 2025.

2. Growth in Hosted Software and Expansion of Existing Customer Accounts: A significant portion of software revenue growth is driven by existing large and mid-sized customers transitioning to hosted software licenses and expanding their contracts during renewals. This trend is reflected in the increase in hosted revenue as a percentage of total software revenue and the growth in Annual Contract Value (ACV) from top customers.

3. Expansion of Drug Discovery Collaborations and Milestone Payments: Schrodinger projects an increase in drug discovery revenue, with expectations ranging from $49 million to $52 million for 2025. This growth is largely due to successful execution across its expanded portfolio of collaborations and the recognition of revenue from upfront payments associated with advancing these partnerships. A notable example is the multi-target research and licensing collaboration with Novartis, which includes a substantial upfront payment and potential future milestone payments.

4. Advancement of Proprietary Programs through Partnerships: While Schrodinger is shifting its strategy away from independently advancing discovery programs into the clinic, it continues to progress its collaborative programs. Initial Phase 1 clinical data for proprietary programs like SGR-1505 and SGR-3515 are expected in 2025. This discovery-focused therapeutics R&D model aims to generate long-term value through licensing, new ventures, and additional discovery collaborations, contributing to drug discovery revenue.

5. Development and Application of New Computational Tools, such as Predictive Toxicology: Schrodinger has launched initiatives to expand its computational platform, including a predictive toxicology initiative. This project, partially funded by a grant from the Bill & Melinda Gates Foundation, aims to improve drug development by reducing the risk of failure due to toxicity, thereby enhancing the value and application of its platform.

Share Repurchases

Based on available information, Schrödinger has not reported significant share repurchase programs or large dollar amounts of shares repurchased over the last 3-5 years. The company's 3-year average share buyback ratio was -0.9%, and its buyback yield was -1.06%, suggesting no substantial repurchases or net issuances.

Share Issuance

• In February 2020, Schrödinger completed its Initial Public Offering (IPO), raising $232.3 million by selling 13.6 million shares of common stock at $17 per share.
• In August 2020, the company conducted an underwritten public offering, generating gross proceeds of $346.5 million from the sale of 5.25 million shares of its common stock at $66.00 per share.
• Schrödinger's shares outstanding increased by 1.06% in the last year, reaching 73.66 million shares.

Inbound Investments

• In November 2024, Schrödinger announced a multi-target research collaboration and expanded software licensing agreement with Novartis, which included a $150 million upfront payment. The company is also eligible to receive up to approximately $2.3 billion in milestone payments plus royalties.
• In September 2022, Schrödinger entered into a collaboration agreement with Eli Lilly and Company, receiving an upfront payment and potentially up to $425.0 million in milestone payments and royalties.
• Schrödinger has active drug discovery collaborations, including one with Bristol-Myers Squibb Company (BMY), under which it can receive up to $482 million in milestone payments.

Outbound Investments

• In January 2022, Schrödinger acquired XTAL BioStructures, Inc., a structural biology services company, for $6 million in an all-cash transaction.
• The company participated as a continuing investor in the Series C financing of Ajax Therapeutics in 2024, a company co-founded by Schrödinger.

Capital Expenditures

• Schrödinger's capital expenditures were -$3.13 million for the trailing twelve months ending June 30, 2025, -$7.31 million in fiscal year 2024, -$13.4 million in fiscal year 2023, -$8.01 million in fiscal year 2022, -$7.17 million in fiscal year 2021, and -$2.54 million in fiscal year 2020.
• The primary focus of Schrödinger's capital allocation involves significant investment in research and development (R&D), particularly for its proprietary drug discovery programs and advancing its computational platform. R&D expenses amounted to $152.42 million in the first nine months of 2024.