Highlights Value of Physics-Based Computational Platform to Solve Grand Molecular Design Challenges, Including Application Across 30 Active Drug Discovery Collaborations and Proprietary Programs
Outlines Opportunities for Future Innovation and Long-Term Value Creation
Announces Drug Discovery Collaboration with Lilly; Schrödinger to Receive Upfront Payment and Up to $425 million in Milestone Payments Plus Royalties
NEW YORK, October 06, 2022--(BUSINESS WIRE)--Schrödinger (Nasdaq: SDGR), whose physics-based computational platform is transforming the way therapeutics and materials are discovered, is providing a detailed review of its technology platform, the impact of this platform across a growing portfolio of collaborative and proprietary drug discovery programs, areas for future innovation, and the opportunities for value creation during its Platform Day today, October 6, from 10:00 a.m. - 12:00 p.m. ET.
"We have a 30-year history of continuing scientific innovation that has resulted in a very powerful technology platform that can accurately predict molecular properties by combining the accuracy of physics-based modeling with the speed of machine learning," said Ramy Farid, chief executive officer at Schrödinger. "Moreover, our physics-based methods allow us to extrapolate beyond characterized chemical space to find the molecules that are beyond the limits of current knowledge. We look forward to highlighting our work in the life sciences today."
New Collaboration with Lilly
Today Schrödinger also announced that it has entered into a collaboration with Eli Lilly and Company. Under the terms of the agreement, Schrödinger will be responsible for the discovery and optimization of small molecule compounds addressing the target. Lilly will be responsible for the completion of preclinical development, clinical development and commercialization. Schrödinger will receive an upfront payment and will be eligible to receive up to $425 million in discovery, development and commercial milestone payments. Schrödinger is also eligible to receive low single- to low double-digit royalties on net sales of any products emerging from the collaboration in all markets.
Collaborations and Proprietary Pipeline Update
Schrödinger is advancing a portfolio of 12 active collaboration projects and 18 proprietary programs. In today’s presentation, six case studies are being highlighted that demonstrate how Schrödinger leverages the platform to overcome molecular design challenges. These case studies include the following:
Discovery of a potential best-in-class acetyl-CoA carboxylase (ACC) inhibitor program in collaboration with Nimbus Therapeutics; the program was acquired by Gilead and is progressing in a Phase 2b trial in patients with compensated cirrhosis due to nonalcoholic steatohepatitis (NASH)
Discovery of a selective TYK2 inhibitor, NDI-034858, in collaboration with Nimbus Therapeutics, which is currently progressing in Phase 2b trials in patients with moderate to severe psoriasis
Discovery of MORF-057, an oral, small molecule ɑ4β7 inhibitor, in collaboration with Morphic Therapeutic, which is currently progressing in a Phase 2a trial in patients with moderate to severe ulcerative colitis and is expected to enter a Phase 2b trial in the fourth quarter of this year
Discovery and development of Schrödinger’s proprietary MALT1 inhibitor, SGR-1505, which is expected to enter a Phase 1 clinical study in patients with relapsed/refractory B-cell lymphoma in the fourth quarter of this year
Discovery and development of Schrödinger’s proprietary CDC7 inhibitor, SGR-2921, which is advancing through IND-enabling studies to support a planned IND submission in the first half of 2023
Discovery and development of Schrödinger’s proprietary Wee1 inhibitor program, which is currently undergoing studies required for selection of a development candidate expected in the fourth quarter of this year
Opportunities for Future Innovation within the Platform
Schrödinger is highlighting the near- and longer-term opportunities for continued innovation of its physics-based computational platform. These opportunities include the following:
Increasing the number and type of discovery targets the platform can advance through hit identification (Hit ID), including structure-based drug discovery for nearly all targets and Hit ID for historically undruggable targets
Improving the effectiveness and efficiency with which the platform can advance targets through lead optimization, including more comprehensive support for ADME-Tox optimization and de novo design
Expanding the applicability of the platform to new high-value areas, including preclinical development and formulations, new modalities and materials design
"The metrics for all aspects of our business are positive - our software business is growing, our collaborations are increasing, we have more milestone and royalty opportunities than ever before, and we are expanding our proprietary pipeline," said Geoffrey Porges, MBBS., chief financial officer at Schrödinger. "We view our balanced business model as a strength and see significant opportunities for value creation from the platform in the near, medium and long term."
Schrödinger’s Platform Day is a hybrid event, with limited in-person attendance available to members of the investment community, and a simultaneous webcast is available for individual investors and other interested parties who wish to join virtually.
The live presentation can be accessed under "News & Events" in the investors section of Schrödinger’s website, https://ir.schrodinger.com/news-and-events/event-calendar and will be archived for approximately 90 days. To participate in the live webcast, please register for the event here. It is recommended that participants register at least 15 minutes in advance of the event.
Schrödinger is transforming the way therapeutics and materials are discovered. Schrödinger has pioneered a physics-based computational platform that enables discovery of high-quality, novel molecules for drug development and materials applications more rapidly and at lower cost compared to traditional methods. The software platform is licensed by biopharmaceutical and industrial companies, academic institutions, and government laboratories around the world. Schrödinger’s multidisciplinary drug discovery team also leverages the software platform to advance a portfolio of collaborative and proprietary programs to address unmet medical needs.
Founded in 1990, Schrödinger has more than 700 employees and is engaged with customers and collaborators in more than 70 countries. To learn more, visit www.schrodinger.com, follow us on LinkedIn, Twitter, and Instagram, or visit our blog, Extrapolations.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995, including but not limited to those regarding the potential advantages of our computational platform, our strategic plans to accelerate the growth of our software licensing business, our research and development efforts for our proprietary drug discovery programs and our platform, the initiation, timing, progress, and results of our proprietary drug discovery programs and the drug discovery programs of our collaborators, the clinical potential and favorable properties of our CDC7, MALT1, and Wee1 inhibitors, including SGR-1505 and SGR-2921, and other compounds discovered with our platform, the timing of potential IND applications as well as initiation of clinical trials for our proprietary drug discovery programs, the clinical potential and favorable properties of our collaborators’ product candidates, including Nimbus Therapeutics and Morphic Holding, our ability to realize milestones, royalties, and other payments from our collaborative, partnered and proprietary programs, our plans to discover and develop product candidates and to maximize their commercial potential by advancing such product candidates ourselves or in collaboration with others, our plans to leverage the synergies between our businesses, our expectations regarding our ability to fund our operating expenses and capital expenditure requirements with our existing cash, cash equivalents, and marketable securities, and our expectations related to the key drivers of our performance, are forward-looking statements. Statements including words such as "aim," "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "goal," "intend," "may," "might," "plan," "potential," "predict," "project," "should," "target," "will," "would" and statements in the future tense are forward-looking statements. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Actual results may differ materially from those described in the forward-looking statements and are subject to a variety of assumptions, uncertainties, risks and factors that are beyond our control, including the demand for our software solutions, our ability to further develop our computational platform, our reliance upon third-party providers of cloud-based infrastructure to host our software solutions, our reliance upon our third-party drug discovery collaborators, the uncertainties inherent in drug development and commercialization, such as the conduct of research activities and the timing of and our ability to initiate and complete preclinical studies and clinical trials, uncertainties associated with the regulatory review of clinical trials and applications for marketing approvals, the ability to retain and hire key personnel and the direct and indirect impacts of the ongoing COVID-19 pandemic on our business and other risks detailed under the caption "Risk Factors" and elsewhere in our Securities and Exchange Commission filings and reports, including our Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 4, 2022, as well as future filings and reports by us. Any forward-looking statements contained in this press release speak only as of the date hereof. Except as required by law, we undertake no duty or obligation to update any forward-looking statements contained in this press release as a result of new information, future events, changes in expectations or otherwise.
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Jaren Irene Madden