Schrodinger exits independent drug development, posts flat Q1 revenue amid software transition

Filed May 5, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 7, 2025 · ~1 min read

Key Changes

• high

  Company will no longer initiate clinical trials independently, seeking partnerships for SGR-1505 and SGR-3515 instead. Combined with May 2025 restructuring, expects $70M in savings when fully implemented.

  MD&A: Strategic shift verify on EDGAR →
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  On-premise software revenue fell 44% year-over-year to $14.2M as customers shift to hosted subscriptions. Management warns near-term revenue will decline as transition progresses, since hosted deals recognize revenue ratably vs. upfront.

  MD&A: Software revenue verify on EDGAR →
• high

  Lilly to acquire Ajax Therapeutics (co-founded by Schrodinger) for up to $2.3B in upfront and milestone payments. Schrodinger holds 5.8% equity stake, though exact proceeds not disclosed. Transaction subject to closing conditions.

  MD&A: Ajax acquisition verify on EDGAR →