Slide 1: Pioneering Computational Molecular Design
Pioneering Computational Molecular Design May 2024
Slide 2: Cautionary Note and Disclaimer
Cautionary Note and Disclaimer This presentation contains certain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements, other than statements of historical fact, made by Schröding
Slide 3: Pioneering Digital Chemistry
30+ years of innovation Pioneering Over 850 employees worldwide; >40% Ph.D. Digital >50% of employees dedicated to R&D Chemistry ~1,785 customers, including top 20 biopharma1 Pipeline of 24+ collaborative and proprietary programs 1 As measured by revenue. 3
Slide 4: Our Target-to-Clinic Digital Laboratory
Our Target-to-Clinic Digital Laboratory Target Hit Lead Preclinical Validation Identification Optimization Development Protein structure Large-scale virtual Compound Polymorph prediction determination screening enumeration Drug formulation Druggability Fragment screening In silico assays for: assess
Slide 5: Multi-Pronged Business Enabled by Highly Differentiated Computational Platform
Multi-Pronged Business Enabled by Highly Differentiated Computational Platform SOFTWARE LICENSING • Life Sciences COLLABORATIONS • Materials Design • Drug Design PROPRIETARY PIPELINE ~1,785 customers worldwide1 • Materials Design 17 drug discovery collaborators2 • Drug Discovery & Development 8+ act
Slide 6: Computational Platform
Computational Platform @ Schrédinger
Slide 7: Designing Drugs Is a Challenging Multi-Parameter Optimization Problem
Designing Drugs Is a Challenging Multi-Parameter Optimization Problem Need to identify a molecule that balances many … anti-correlated properties: Potency ✓ ✕ ✓ ✕ ✓ ✓ 33% success Selectivity ✕ ✓ ✓ ✓ ✕ ✓ IND Solubility ✕ ✕ ✕ ✓ ✓ ✕ delivery Bioavailability ✕ ✕ ✕ ✕ ✕ ✕ 66% Clearance / Half-life ✕ ✕ ✕ ✕
Slide 8: Schrödinger's Vision for the Future of Drug Discovery
Schrödinger’s Vision for the Future of Drug Discovery If all properties can be calculated with perfect accuracy, designing drugs would have a much higher success rate, be much faster and cheaper, and would produce much higher-quality molecules. Select THE best molecule “All” synthesizable molecules
Slide 9: Physics & Machine Learning Are Complementary
Physics & Machine Learning Are Complementary Physics + AI Physics-based Training Set for AI/ML Artificial Intelligence / Methods Generated Using Physics Machine Learning ✓ No training set required ✓ Fast ✓ Effective at interpolation ✓ Can extrapolate into novel ✓ Accurate ✓ Fast chemical space ✓ Can
Slide 10: Physics-Enabled AI/ML Workflow
Physics-Enabled AI/ML Workflow PHYSICS + AI PHYSICS + AI PHYSICS MACHINE MAKE & ADVANCE PHYSICS generates generates determines LEARNING TEST BEST computes protein/ligand 1,000,000,000s properties of subset scores the 10s of MOLECULE properties of top structures of molecules of molecules 1,000,000,00
Slide 11: Platform Validated by Advancing Collaboration Programs
Platform Validated by Advancing Collaboration Programs(1)(2) 8 programs in the clinic (+ 5 in IND-enabling studies)3 Phase 1 Phase 2 Phase 3 Immuno-oncology Metabolic Diseases6 Psoriasis6 Pulmonary Arterial Hypertension Inflammatory Bowel Disease Oncology4 FDA-Approved Oncology5 TIBSOVO7 IDHIFA7 Und
Slide 12: Proprietary Pipeline
Proprietary Pipeline @ Schrédinger
Slide 13: Advancing Multiple Clinical and Preclinical Programs
Advancing Multiple Clinical and Preclinical Programs DISCOVERY PRECLINICAL PHASE 1 SGR-1505 (MALT1) R/R B-cell Malignancies* SGR-2921 (CDC7) R/R AML/MDS* SGR-3515 (Wee1/Myt1) Solid Tumors SOS1 Solid Tumors PRMT5-MTA Solid Tumors EGFRC797S Solid Tumors NLRP3 Immunology LRRK2 Neurology Undisclosed Pro
Slide 14: MALT1 Protease Inhibition Clinically Validated in 3rd Party Study
MALT1 Protease Inhibition Clinically Validated in 3rd Party Study Allosteric Inhibition of MALT1 Non-Hodgkin's Lymphoma (NHL) • Clinically validated by 3rd party MALT1 28% ORR* monotherapy1,3,4 inhibitor showed monotherapy and Chronic Lymphocytic Leukemia (CLL/SLL) combination activity in human B-ce
Slide 15: SGR-1505 Status and Next Steps
SGR-1505 Status and Next Steps • SGR-1505 was generally well tolerated with no dose-limiting Phase 1 healthy subject toxicities and no serious adverse events study completed • Favorable PK and evidence of target engagement Phase 1 study in • Primary objectives: Evaluate safety, PK, PD, RP2D* advance
Slide 16: CDC7 Is an S-phase Kinase That Regulates DNA Replication
CDC7 Is an S-phase Kinase That Regulates DNA Replication and the Replication Stress Response CDC7 • Maintains DNA replication fork progression, activates fork protection and restart mechanisms1,2 • Activates BRCA1-A and Cohesin complexes1 • Required for protection and restart of stalled replication
Slide 17: SGR-2921 Status and Next Steps
SGR-2921 Status and Next Steps • High replication stress in AML Strong preclinical • Potent and selective CDC7 inhibition shows strong rationale anti-proliferative activity in AML samples, including those resistant to standard-of-care therapies • Primary objectives: Evaluate safety, tolerability and
Slide 18: Wee1 Inhibition Clinically Validated in 3rd Party Studies
Wee1 Inhibition Clinically Validated in 3rd Party Studies Head and Neck Cancer Breast Cancer 50% ORR (chemo combination)7 SGR-3515 Combines 26% ORR (cisplatin combination)1 Schrödinger Wee1/Myt1 Wee1 Inhibitor SchrödingerActivity Wee1 Inhibitor Lung Cancer Program •Program Objectives Objectives Oppo
Slide 19: SGR-3515 Status and Next Steps
SGR-3515 Status and Next Steps Strong mechanistic • Clinically validated target rationale • Potential benefit in wide range of tumor types • Potentially superior Wee1/Myt1 potency, improved selectivity and lower drug-drug interaction liability in preclinical models Differentiated profile • Profile e
Slide 20: Advancing Multiple Discovery Programs
Advancing Multiple Discovery Programs EGFRC797S PRMT5-MTA NLRP3 • Optimizing a wild-type-sparing, • Leads display MTAPKO selective • Advancing leads in two series CNS-penetrant molecule* anti-proliferative effects, and with excellent in vivo potency favorable solubility and ADME and ADME profiles •
Slide 21: Materials Science
Materials Science @ Schrédinger
Slide 22: Leveraging Platform Synergies: Materials Science
Leveraging Platform Synergies: Materials Science • Materials Science business launched in 2012 • Leverages 30+ years of innovation in atomic-scale simulation solutions Initial Collaborations: Next-Gen Batteries • Developing atomistic simulations to improve battery performance • Agreement renewed for
Slide 23: Platform Has Broad Application Across Industrial Materials Design and Development
Platform Has Broad Application Across Industrial Materials Design and Development Consumer Catalysis & Energy Alloys, Organic Polymeric Semi- Complex Packaged Reactive Capture & Metals & Electronics Materials conductors Formulations Goods Systems Storage Ceramics Tailored solutions designed to reduc
Slide 24: Financial Overview
Financial Overview @ Schrédinger
Slide 25: 2023 Key Performance Indicators
2023 Key Performance Indicators Total Annual Contract Value $51M (ACV) of top 10 customers1 54 # of customers Difference in ACV between largest >20X and smallest customer among the top 15 pharma companies2 27 $6.7M 4 $3.5M ≥ $500K ≥$1M ≥$5M $1.8M $1.4M ACV segment3 1-5 6-10 11-15 16-20 98% retention
Slide 26: 1Q24 Financial Highlights vs. 1Q23
1Q24 Financial Highlights vs. 1Q23 Three Months Ended March 31 2023 2024 % Change Total revenue $64.8 $36.6 (44%) Software revenue $32.2 $33.4 3.7% Drug discovery revenue $32.6* $3.2 (90%) Gross profit $45.7 $18.9 (59%) Software gross margin 78% 76% Operating expenses $76.2 $86.3 13% Other income $1
Slide 27: Full Year 2023 Key Performance Indicators (KPIs)
Full Year 2023 Key Performance Indicators (KPIs) 2022 2023 Software KPI Total annual contract value (ACV) $140.6M $154.2M ACV of Top 10 Customers $46.5M $51.0M Number of customers with ACV ≥$5M 4 4 Number of customers with ACV ≥$1M 18 27 Number of customers with ACV ≥$500K 52 54 Number of customers
Slide 28: Four-Quarter Trailing Average Software Quarterly Revenue Trend
Four-Quarter Trailing Average Software Quarterly Revenue Trend 50 39.8 40.1 40 33.9 33.7 33.5 34.6 30.0 31.5 31.6 30 28.3 $ Millions 23.8 24.6 24.9 23.1 21.3 19.6 20 18.0 10 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 202
Slide 29: Software and Drug Discovery Revenues: 2019-2023
Software and Drug Discovery Revenues: 2019-2023 250 200 Drug discovery $58 2019-23 CAGR 32.3% Revenue ($millions) $45 150 $25 100 $16 $159 $19 $136 $113 Software $50 $93 $67 2019-23 CAGR 24.3% $0 2019 2020 2021 2022 2023 Drug discovery Software products and services Cash is supplemented Equity inves
Slide 30: Reiterating 2024 Financial Guidance
Reiterating 2024 Financial Guidance (As of May 1, 2024) 2023 Actual Guidance Total revenue $216.7 Software revenue $159.1 6% – 13% Drug discovery revenue $57.5 $30 – $35 Software gross margin 81% Similar to 2023 Operating expense growth 28.4% 8% – 12% Cash used in operating activities $136.7 Above 2
Slide 31: Capital Allocation Strategy Built on Proprietary Insights and Competitive Advantages
Capital Allocation Strategy Built on Proprietary Insights and Competitive Advantages in Computational Chemistry Aiming to Generate Positive Returns from Deployment of Technology, Expertise and Capital Opportunities that leverage: Commercially Validated Target or Useful Development Goal Innovation •
Slide 32: Strategic Priorities and Anticipated Milestones
Strategic Priorities • Maintain commercial momentum for software in drug discovery • Expand scope of application of computational technology platform • Advance lead proprietary programs to clinical proof of concept • Progress second wave of proprietary development candidates towards IND Anticipated
Slide 33: Pioneering Computational Molecular Design
Pioneering Computational Molecular Design May 2024
Slide 34: Appendix
Appendix Annual Contract Value (ACV). With respect to contracts that have a duration of one year or less, or contracts of more than one year in duration that are billed annually, ACV is defined as the contract value billed during the applicable period. For contracts with a duration of more than one