Following the release of its Q3 2024 earnings report, Schrödinger, Inc. (NASDAQ: SDGR) shares are on a notable increase this session. Investor confidence was demonstrated by the surge in SDGR stock price, which increased 10.03% to trade at $21.50 as of the last check.
Notable Financials
Schrödinger (SDGR) reported $35.3 million in total revenue, which was fueled by both other revenue and core business activities. Notably, other revenue—which includes interest income and adjustments to the fair value of equity investments—rose sharply to $30.2 million from $8.7 million in the previous year.
Positive changes in its equity investment valuation are reflected in this improvement. Compared to the $62.0 million loss recorded during the same time previous year, net loss for the reported period was $38.1 million.
Strategic Alliance with Novartis
An important strategic move was the announcement of Schrödinger and Novartis of a multi-target research and licensing partnership. Novartis will pay Schrödinger $150 million up front as part of the deal, with milestone payments of up to $892 million possible based on advancements in research, development, and regulations.
Additionally, royalties on net sales of Novartis-developed medicines and commercial milestones could total up to $1.38 billion for SDGR. The partnership also includes an expanded software licensing agreement, providing Novartis with enhanced access to the company’s advanced computational modeling and informatics platform.
Exciting Developments in Drug Discovery
SDGR continues to make strides in the pharmaceutical sector through its co-founded companies. In November, Nimbus Therapeutics announced updated data for NDI-101150, a promising HPK1 inhibitor for solid tumors. Furthermore, in October, Ajax Therapeutics initiated its Phase 1 study of AJ1-11095, a novel JAK2 inhibitor for myelofibrosis. These developments underscore SDGR’s ongoing commitment to innovative therapeutic solutions.
Key Acquisition and Future Prospects
In another significant event, Eli Lilly completed its $3.2 billion acquisition of Morphic, a company co-founded by Schrödinger. SDGR continues to hold a stake in Morphic and is entitled to royalties from its clinical development programs, further enhancing its financial outlook.