Schrodinger(US:SDGR)2022-02-23 16:00Financial Performance - In 2021, the company generated revenue of $137.9 million, representing a year-over-year growth of 28% compared to $108.1 million in 2020[26]. - The software revenue reached $113.2 million in 2021, an increase of 22% from 2020, driven by broad adoption in the biopharmaceutical industry[28]. - In 2021, the top 20 pharmaceutical companies accounted for $42.0 million, or 37%, of the company's software revenue[48]. - The company had 1,647 active customers as of December 31, 2021, with the top 10 customers representing approximately 33% of software revenue[49]. - The number of customers with an annual contract value (ACV) over $100,000 increased to 190 in 2021 from 131 in 2019, indicating growing adoption of the platform[50]. - The customer retention rate for those with an ACV over $100,000 was 98% for the year ended December 31, 2021[52]. Collaborations and Agreements - The company entered into a collaboration agreement with Bristol-Myers Squibb, receiving a $55.0 million upfront payment and being eligible for up to $2.7 billion in total milestones[25]. - The company has entered into collaborations across various therapeutic areas, including oncology and autoimmune diseases, with significant potential for milestone payments and royalties[70]. - The collaboration with Takeda allows the company to control the drug discovery process and retain intellectual property rights until Takeda exercises its option to acquire the program[76]. - The company is entitled to receive approximately $338 million in milestone payments from Zai Lab Limited for any product candidate developed under their collaboration[80]. - The company has a joint steering committee overseeing the collaboration with BMS, ensuring mutual agreement on research plans and targets[156]. Drug Discovery and Development - The company collaborated on over 20 drug discovery programs with more than ten biopharmaceutical companies in 2021, generating drug discovery revenue[21]. - The company plans to submit an IND application for its MALT1 program in the first half of 2022 and initiate a Phase 1 clinical trial in the second half of 2022[22]. - The MALT1 inhibitor program aims to treat patients with non-Hodgkin's lymphoma and chronic lymphocytic leukemia, with preclinical studies showing strong anti-tumor activity[83][92]. - The CDC7 inhibitor program is focused on advanced solid and liquid tumors, with preclinical molecules demonstrating inhibition of CDC7 and tumor growth inhibition in models[93][103]. - The company is pursuing undisclosed programs in oncology, immunology, and neurology, currently in the discovery stage[119]. Technology and Innovation - The computational platform can evaluate billions of molecules per day, significantly increasing the probability of finding novel molecules with desired properties[42]. - The company’s platform has demonstrated an eight-fold increase in the number of molecules with desired affinity compared to traditional methods[42]. - The computational platform enables the identification and advancement of multiple novel series from hit finding to lead optimization, enhancing drug discovery efficiency[86]. - The integration of machine learning with physics-based methods allows for the rapid evaluation of billions of molecules, enhancing the likelihood of identifying viable drug candidates[129]. - The computational methods employed by the company, such as FEP+, have led to the identification of novel nanomolar or picomolar inhibitors within the first few months of project chemistry[141]. Intellectual Property and Competitive Position - The company aims to protect its proprietary technology through patents, trade secrets, and continuous innovation[192]. - As of February 4, 2022, the company owned or held exclusive license rights to approximately 55 patents and patent applications, including at least 8 issued or allowed U.S. cases and 11 issued or allowed non-U.S. cases[196]. - The company has approximately 49 copyright registrations covering its proprietary software code as of February 4, 2022[201]. - The company relies on unpatented trade secrets and confidential know-how to maintain its competitive position, although these are difficult to protect[201]. - The company faces competition from major pharmaceutical and biotechnology companies, as well as smaller firms and academic institutions in the drug discovery space[150]. Sales and Operations - The company has established sales operations in the United States, Europe, Japan, India, and South Korea, supported by a global team of approximately 150 personnel[204]. - The company does not own or operate manufacturing facilities and relies on third-party contract manufacturers for drug development[206]. - The company expects to utilize various collaboration and distribution arrangements to commercialize its development candidates[205].