Schrödinger: Company Creation Is Now The Real Drug Business

Schrödinger, Inc. has undergone significant changes, including pipeline cuts and a strategic pivot away from solo clinical development. Despite software growth deceleration and pipeline setbacks, SDGR's financials improved with the Ajax sale and a stronger balance sheet. SDGR's net income turned positive in Q2 2026, aided by a $48.9M gain from Ajax and increased cash reserves to $418.8M. I expect SDGR's cash runway to extend to 2029–2030, with management targeting positive adjusted EBITDA (ex-SBC) by the end of 2028.

A surprising amount has changed over at Schrödinger, Inc. (SDGR) since my June 2025 write-up ("Buy"). Developments have been mixed, and management has shaken up the business. Last year, my Buy thesis hung on