Schrodinger, Inc. · NASDAQ:SDGR
Schrodinger — Investor Presentation (March 2021)
30 slides from Schrodinger's investor presentation, Mar 23, 2021
Slide 1: Transforming Discovery of Therapeutics and Materials
Exhibit 99.1 Transforming Discovery of Therapeutics and Materials March 23, 2021
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary computational the their December capabilities “estimate,” forward-looking strategies statements Securities 2021, information, and are update cautioned initiation, uncertainties. studies commercial assuch well and and 31, and Note “expect,” conducted and data future as timing, not prospect
Slide 3: Schrödinger at a glance
Schrödinger molecules Design of customers Drug forWe who Discovery drug are had development transforming anBusiness ACV ofand Collaborative the at least materials way$1,000 therapeutics applications Programs in a given andInternal materials fiscal faster year. than Pipeline aretraditional 3 discover
Slide 4: Designing drugs is extremely hard
•Designing Drug-drugdrugs interactions is extremely • Selectivity hard! Lengthy, • Clearance capital-intensive, / half-life • Synthesizability and prone to high • Solubility failure rates • Permeability Need to identify • Toxicity a molecule (1) Based thaton balances average, a large industry-wide n
Slide 5: Drug discovery success rates and anti-correlated properties
x•Designing Drug-drug x x x x x drugs delivering interactions is extremely an •IND(1) Selectivity hard! Permeability Lengthy, • Clearance capital-intensive, x x /xhalf-life x x x (1)• Based Synthesizability and prone on average, to high • Solubility industry-wide failure rates • Permeability Need su
Slide 6: Our vision for the future of drug discovery
Drug discovery molecules “All”–Select visionTHE for the synthesizable future If webest could molecule calculate molecules all the properties PotencywithSelectivity perfect accuracy, Solubility designing Clearance drugs would Permeability have a higher Drug-Drug success rate, Interactions be faster a
Slide 7: Potential solutions to the drug discovery problem
Potential molecular recognize complex solutions faces in photos, to interactions the drug autonomously discovery 7 problem drive cars, Decades can it be long used challenge to design – two drugs? major • Rigorous, approaches: first•principles Knowledge-based physics-based machine modeling learning •
Slide 8: Physics-based methods required to capture complexity
Physics-based temperature times methods entropy) required 8 to capture complexity of molecular properties â^†G = â^†G(1) + â^†G(2) + â^†G(3) + â^†G(4) + â^†G(5) bind â^†G = â^†H – Tâ^†S (free energy = enthalpy minus
Slide 9: FEP+ platform combines physics accuracy with machine learning speed
1Schrödinger molecules billion FEP+ 9 platform molecules combines 1–2 Score accuracy DAYSof 1physics billion with molecules speed using of machine FEP+ learning ML modelEnables ~8 molecules ultra-large thatscale Synthesize exploration 1-2 Top of chemical 5,000 advance space 1the 1,000 10 DAYS DAY Tr
Slide 10: Demonstrated benefits of Schrödinger drug discovery platform
Demonstrated Property with Leadissues Optimization benefits • ~5,000ofOptimal molecules Schrödinger property synthesized drugprofile discovery and • Billions tested platform over of molecules Reduces ~4 – 6 years time tested Traditional and in cost computational and Drug increases Design assays qual
Slide 11: Drug Discovery
Drug Discovery
Slide 12: Our strategy: scientific success and commercial synergies
Our strategy: scientific success and synergies commercial Expand • Maximize andopportunities advance thecollaborative value 12 and commercial and internal opportunities drug discovery generated programs by program • Apply IP our• Advance latest technologies our wholly-owned to the discovery programs
Slide 13: Broad-based pipeline of collaborative and internal programs
Broad Based Oncology Antifungal Inflammatory Enabling 2021. property Acquired pipeline rights Programs by FDA Discovery on Gilead Bowel of until Approved publicly collaborative Progressed Sciences, Takeda Diseases Autoimmune available Oncology exercises Inc. Phase by programs(1)(2) information Schrö
Slide 14: Internal drug discovery programs
Internal drug discovery programs 14
Slide 15: MALT1 program
MALT1 of constitutive that by the third-party targeting CARMA1-BCL10-MALT1 inhibitors MALT1 MALT1 contract areprotease may additive research expand activity tochemists, covalent (CBM) therapy and using MALT1 signalosome and options non-covalent publicly fusions for patients which available with BTK
Slide 16: MALT1: Anti-tumor potency as single agent in mouse model
MALT1: Anti-tumor NF-Kappa Tumor Uncleaved potency as BCL10 singlePlasma agent in IL-10 mouse 16 model Tumor growth inhibition in an OCI-LY3 CDX Xenograph model Dose responsive changes in BCL-10 cleavage and serum IL-10 confirm
Slide 17: MALT1: Similar potent results in combination
MALT1:Similar alone Potent results anti-tumor with effects venetoclax observed through in combination at least 28 days withpost-treatment ibrutinib or venetoclax SDGR molecule + ibrutinib drives significant reduction in tumor volume in animal model compared to either therapy
Slide 18: CDC7 & WEE1 target cancer cell vulnerability
CDC7 &leaves kinases heighten damage WEE1cancer target and lead cells cancer to vulnerable durable throughanti-proliferative to replication failed DNA stress damage efficacy and DNA repair 18 repair and high mechanisms levels of•replication Cancer cells stress, depend failure on checkpoint of cell d
Slide 19: CDC7 inhibitors show synergy in lung cancer cells
CDC7 inhibitors, showing by third-party inhibitors synergy our contract CDC7 show in H460 inhibitors research additive lung cancer anti-proliferative resulted chemists, cells inusing additive CDC7 publicly effects anti-proliferative biochemical with available PARPassay information inhibitors effects
Slide 20: CDC7 inhibitors show additive effects in acute myeloid leukemia
CDC7myeloid acute inhibitors leukemia show additive cells. Combination anti-proliferative of SDR-7657 effects inand AMLvenetoclax models •showing Our novel synergy CDC7ininhibitor AML cells series SDR-7657 combined(nM) withðš«-41 venetoclax, 20 a BCL2 inhibitor, resulted in additive anti-proliferati
Slide 21: WEE1 series shows selectivity
WEE1show selectivity series 0.8nM 50 inhibitors OVCAR3 versus no CYP3A4 have PLK1 CTG, optimized relative TDI ECliability 190nM toselectivity AZD1775 and 50 Studies exhibit and • Using physicochemical conducted favorable ProteinADME/DMPK using FEP+properties versions technology of properties • Exist
Slide 22: Rapidly advancing this pipeline toward IND-enabling studies
Rapidly advancing this yearprogressing IND-enabling *IND: Investigational pipeline studies • Internal to New support Drug deployment up 22to three of physics-based IND applications methods next year* has accelerated • First INDthe submission advancement expected of ourinprograms H1 2022••Building Ex
Slide 23: Key Financials
Key Financials 23
Slide 24: Strong operating momentum and cash position
Strong 26% operating commissions, y/yoperating growth activities 24•momentum and Software inoffering 2020 revenue across *expenses. Cash,the ofcash $92.5 business In equivalents, August million, Revenue 2020, 39% restricted we ($M) y/y received growth $108.1 cashnet Strong and $15.6 proceeds marketa
Slide 25: Key performance indicators show strength of software business
Key $32 customers $41 2020 whichperformance CAGR: is 2013 not with included 27% 2014 >$100,000 indicators 16 2015 in 11the 10 2016 inchart 8show ACV 92017 5 above; 3strength in 42018 2013 2020 we2019 of 2014 vs. had software 131 2020 2015 3 25 in Customers such 2019 2016 business customers •2017 Cus
Slide 26: Driving discovery in collaborations and equity positions
Driving 33.3% discovery in Based March to Nimbus acquisition on Faxian 1,value 2021 the and andnumber of from Therapeutics, clinical 3. Petra* one Onour Nimbus aof Morphic milestones fully collaborations shares diluted LLC program of andand (JV) common Relay unit potential and by 50.0% basis Gilead;
Slide 27: Key financial data
Key**After Gross 41.9 restricted 27 financial 27.0 profit cash 55adjusting $63.5 %data: and Total $49.1 marketable Full-year for operating non-controlling 29 %2020 securities Software expenses and 2019 gross 643.2 interests $124.4 Financial margin 86.3 $87.8 645 81 Results 42% %%Deferred 80 Operatin
Slide 28: 2021 financial outlook
2021 financial $22-32M digits quarter growth Discovery to rate 41-106% quarter reported outlook revenue Expenses Software in (as 2020 • of $54 • •revenue March Continue Expect million 23, •software to in Growth 2021) aggressively deferred Revenue gross expected revenue margin fund Expectation to fro
Slide 29: Summary of platform, pipeline and financial position
aSchrödinger computational pipeline of •drug We platform have discovery developed and therapeutic programs a leading internally pipeline computational 29 and through platform collaborations that is transforming to bring newdiscovery medicinesoftotherapeutics patients • We andhave materials establish
Slide 30: Transforming Discovery of Therapeutics and Materials
Transforming Discovery of Therapeutics and Materials