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Disclosure: The author holds a long position in SDGR.

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SDGR

Analysis as of: 2026-01-06

Schrödinger, Inc.

Schrödinger sells molecular simulation and informatics software and monetizes its platform through drug-discovery collaborations and a therapeutics pipeline.

ai biotech cloud healthcare software

On Yahoo Finance ...

Jump to: Summary • Analysis • Opportunity • Risk • Trends • Third Party Analyst Consensus

Summary

From niche modeling to molecular R&D platform

The core bet is enterprise standardization: making computational workflows the default operating layer for drug teams, with higher recurring revenue mix. Upside comes from disciplined therapeutics optionality that does not reintroduce late-stage cash burn.

Analysis

Thesis

SDGR can re-rate from “scientific tools + lumpy milestones” to a higher-trust molecular R&D operating system by pushing workflows into hosted/usage delivery, packaging auditability/security as a paid tier, and keeping therapeutics option value partner-funded—compounding software visibility while preserving biotech upside.

Last Economy Alignment

Strong fit: it sells cognition-compressing software into pharma R&D, where speed, trust, provenance, and workflow lock-in become the moat.

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Opportunity Outlook

Average Implied 5-Year Multiple

3.7x (from 5 most recent analyses)

Reasoning

The upside is not a single biotech catalyst; it’s repeatable enterprise expansion. If Schrödinger shifts more customers to hosted delivery, attaches premium “trust” features (auditability/security), and productizes collaboration economics without re-adding late-stage clinical burn, revenue becomes more recurring/visible and deserves a modest multiple expansion versus today’s niche-tools framing.

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Risk Assessment

Overall Risk Summary

The key risks are (1) enterprise adoption speed (pharma scale-up timing), (2) software commoditization/bundling by broader informatics and AI stacks, and (3) strategic drift back toward capital-intensive clinical development that would reintroduce dilution and compress valuation.

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Trends

Key Changes

No new SDGR SEC filings or earnings updates observed in the last ~10 days; trading remains around the high-teens per share.
Sector signal strengthened: continued large pharma interest in AI-enabled discovery via new partnership announcements elsewhere in the industry.
Recent company update still framing: Q3 2025 results showed strong YoY software growth but management lowered full-year software growth guidance due to scale-up timing.

Forecast update

More conservative view on multiple expansion given management’s acknowledgement that pharma scale-up timing is the gating variable.

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Third Party Analyst Consensus

12-Month Price Target

$27.22

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