- Earnings call transcript Q3 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Everyone, thank you for standing by. Welcome to Schrödinger Conference Call to review Third Quarter 2022 Financial Results. My name is Chris, and I’ll be your operator for today’s call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. advised request. call be at being Please Company’s the Instructions] that is this recorded [Operator

would to of I Jaren Corporate Now, like Please Madden, conference, for Affairs. Senior Ms. today’s Vice ahead. President go Investor and introduce Relations your host

Jaren Madden

progress afternoon, on a financial Thank update results. today’s our call, provide Company Earlier the XXXX press financial and our review across today, Welcome during you, everyone. and is to issued we release which which summarizing available results at and website will quarter we good the an Company, our third on www.schrodinger.com.

me call R&D, and on Karen Here Ramy with Officer; Geoff of President our Therapeutics. Farid, Officer; Chief Executive Akinsanya, Financial are Chief Porges, today

elsewhere discovery our the advance pursuant December collaborative growth you XXXX and Act that of and XX-Q and without accelerate XXXX, and based drug in current due our Risk forward-looking today’s the expectations, on statements a the XXXX, as will submissions ending software assumptions prepared including, to business of our the Safe business of proprietary Actual of made. which statements to initiation have us well currently reflect strategic on the related may expectations are and differ to expenses. programs, Litigation make September in for may period today, prospects, management views ended Securities with clinical SEC remarks, our full our update potential timing XX, our caution Factors considerations important XXXX. provisions we in favorable the plans described that the today programs, only drug IND the including we about during available intentions, future, forward-looking resources related number outlook for related future our open Reform our to views from make project including fourth our Form information, our to as we the compounds, information our as our represent discovery These events of of the quarter and them call of the otherwise. section like materially are we operating properties our for our to the These results plans, for our you the result what use trials proprietary clinical of as not that, the potential of the a to made and for and factors, cash I’d future strategies turn of we’ll statements statements whether are remind Harbor forward-looking Q&A. filings and the that we the limitation, Private XX, Ramy. call to call, to new and Following to the year I’d like With or over

Ramy Farid

Thanks, for Jaren, today. thank you and joining everyone us

We have are and way discovered. developed a materials computational platform therapeutics that is transforming the

and academic platform to Our create a the profile. well materials as business our institutions biopharma reward to providing of around distinct and companies component government licensed We risk each business balanced our model with has software a as enabled world. us

of a licensing continuing revenue growing provide to continued source Software innovation. and enables is investment that

million, primarily the driven a The discovery prior revenue XX% XX we strong revenue. total Today, was our revenue. potential. by increase in an third year. best-in-class Additionally, discovery to discovery And growth over collaborative quarter or contributing proprietary projects first-in-class we portfolio drug are with for drug on approximately inflecting million expanding work $XX have programs of that reported we the $XX drug of

quarter our revenue was Third $XX.X with which million, expectations. was software in line

review In and our revenue are financial original quarter remain our our range and in financial environment. year provide challenging XXXX the financial on we guidance year, third out XXXX detail moment, fourth tightened As quarter total a to and even will full Geoff more within economic we of look to the guidance. results pleased remainder have the a

hear you’ll our shortly programs. MALTX our are collaborative also we Phase to announced X Today, Karen, SGR-XXXX, of we study and for As that across enrollment. continuing inhibitor, is from projects proprietary make open our pipeline progress of patient

We also preclinical December, present in reported CDCX our we data new inhibitor Meeting. the ASH will SGR-XXXX at that for Annual

and we upfront compounds drug receive on also up expand and are partnership to our for are payment small Under molecule discovery, eligible discovery well million an and payments as to with agreement, Lilly commercial a milestone We royalties undisclosed continuing as development of received portfolio discovery an net sales. recently the for target. to $XXX in announced the

have are We business quarter macroeconomic particularly we have our we having in environment. are with ended $XXX cash and third Fundamentals strong this year, far so challenging solid of pleased made million. the with the a position, progress a approximately

discovery the turn of and will We guidance. aspects third I of materials all design. advance to are financial value focus continuing we now to business financial to call Geoff executing review our our our vision across on quarter to drug and as transforming over results generate

Geoff Porges

an here And call first Thank with Schrodinger’s CFO. as everyone. team today be results hello, It’s honor financial you, to my the Ramy. for

of reflects XXXX. and increasing large the in XXXX. pre-purchases growth reported recognized the through Total for hope in those million I the a the development third trends QX years. strong are investments discovery growth the a third XX% consistent year. underlying quarter we quarter, proprietary last returns platform year, up four technology reflects growth in in revenue contribution better-than-expected our software the prior compared The in have programs. made Adjusting licensing, is with the was revenue. quarter, business been over contract software effect significant computational multi-year of QX the and heard we this The the have strong, for Platform would QX delivered that QX revenue $XX positive business driven revenue As we to that reported discovery and creating you have at drug of collaborations in the deep from Day, from drug broad seeing are by We value and the

third Software with of quarter quarter revenue $X.X expectations to XXXX, our in discovery third was year. Drug was our for of from included recognized third compared million, Drug of discovery for collaboration million the million related to with the reported last similar the Bristol-Myers $XX.X collaborative to milestones $XX.X the $XX.X ongoing revenue line proprietary for and revenue quarter in XXXX. in revenue as million as quarter $X.X revenue and from the Squibb other programs. well million

during period. Gross the the in rights $XX.X was program $XX.X increased third our one this compared to BMS recognition profit quarter, a collaboration million to our XXXX, resulted revenue the the to us, development. third million completion of in programs not XX% of the to And of During with accelerated the due further selected year-over-year. reverted after to proceed quarter obligations increase representing quarter, related for to

same which the Software million Operating of gross third reflect quarter our of platform our growth third headcount, in and The year quarter similar to were XXXX, for margin loss year. expenses We expectations. to for the in was collaborative a million our of last investment consistent continued $XX.X and in quarter net is the $XX.X third XX% proprietary with cash, the programs. million compared XXXX. year, the June balances guidance. $XXX to recorded $XX.X quarter XXXX. million loss expenses increased last and turn of the compared restricted of quarter to for the full remaining million million, financial cash on With financial approximately now are updating period marketable guidance to net $XXX prior $XX We ended XX, cash the and our in I’ll of same equivalents, one year. approximately quarter our XXXX for in we with year a securities compared the progress

and effect our $XXX million, months million, for We is timing of guidance. our factors end range new lower to previously. companies We based to the by million as million. reflects growth of midpoint to compared to million, QX biotech XXXX to These to and The the in the to revenue the software $XXX in new modest range lower the for currency, QX. the capital of occur compared from impacted corresponds $XXX our midpoint last million narrowed our million We customers’ to still typically over have total are XX% XXXX. revenue our and than $XXX several range $XX foreign on from about prior $XX of technology total a from excluded include million significant QX, Those guidance for in largest range $XXX by have implied completed prior purchase anticipated potential $XXX range $XXX The that environment of impact guidance smaller markets is expect revenue now to a million the three having range in scale QX up in increases which be range. decisions. reduced is to which range of guidance uncertainty customers. revenue continuing remaining XX% same for The year-end adoption factors $XXX million now our to emerged million A year. $XXX expect to increases the the our among and adoption range in contracts be reflects about of uncertainty our

partner XXXX milestones programs. $XX recognition in million increasing by and drug $XX million, expected our year expectation to remaining outstanding BMS’s uncertainty revenue million range discovery our of anticipated are The discovery not year revenue of program revenue to projects. $XX for decision and Greater for other other drug is for to to for million. relates strategic the compared advance certain drug to of the the one collaborations and completion to meeting the We our prior collaboration than $XX timing driven discovery collaboration by

reflects operating be for year compared Finally, our lower expenses approximately we just and our other drivers. expense in the expectation to growth under The latest timing that hiring of growth. now XX% expectations prior of XX%, expect expense the will for growth

expect to gross We our continue be the mid-XXs. to software in margins

in environment, that challenging strongly. macroeconomic encouraged revenue a very are grow We to continues our

growth licensing our to in We and to revenue, building in are collaborations value delivering proprietary software committed and programs. increasing continued

and update drug more deliver partnered innovative to turn the technology the increasing becoming of licenses confident value companies the the differentiated. we industry, Our call now an coming strong, some are is validated I’ll our in over With the programs programs collaborations industry, and programs. across that balance development, advancing XX and and discovery very quarters. in place in for platform technology will with and through and growth our is on most Karen largest continued sheet more proprietary we and biopharmaceutical

Karen Akinsanya

And Thank good you, everyone. Jeff. afternoon,

are make discovery continuing there our Within the to XX projects important are the in are our collaborative through progress phases. across portfolio. pipeline, X programs advancing currently We and clinic,

Additionally, of programs, XX includes some therapeutics some continued to number working of last five and the are over is which proprietary proprietary we of the programs group partnered portfolio our our wholly on. increase years, have which Today, owned. are

cumulative Day, Platform believe success rates ongoing we a across the growing averages. at our to very promising highlights trend the platform. of relative discussed we and of technical completed computational and improvements is programs number As that achieving published We are collaborators meaningful signals this power our industry

and As new discovery are programs able to move the programs. complete clinic, initiate into we

recently a preclinical and As in with discovery earlier into we BMS Notably, commercialization new of as program molecules with Lilly of than advance you for for entered as of the the occurs to model to an collaborations will the development, handoff target. responsible heard products. our relationship be small completion from and Takeda. Lilly clinical well Ramy, Lilly disease studies, undisclosed

sales payments, to and to is which royalties we XXth eligible $XXX in discovery, payment, are we all royalties for to eligible on receive up new sales. future milestone and In development upfront million commercial geographies. are on This receive to program the addition commercial in an

one a deprioritize to BMS Geoff As our mentioned, of decision programs. made partnered strategic

this validated on in to elected we have Given the made program progress genetically continue the invest have target, to we internally.

We be and information to about programs able more in expect share other proprietary this XXXX. to

with also BMS. of an exploring target are alternative interest mutual We

will Turning mantle clinical advanced review initial our resistant has I cell by potential already in most and to described treatment CLL our malignancies, with signs ABC-DLBCL including of programs. B-cell MALTX a wholly-owned emerged three lymphoma, and pipeline. for SLL. as the therapeutic target others Today, or relapsed

for with recommended study of the signals pharmacokinetics, SGR-XXXX of and there malignancies, evaluate evaluate and as tumors such disease. solid proprietary to that B-cell dose cohort is could the potential as on enrollment. antitumor X to inhibitors. early is open safety, emerging combination clinical in our and BCL-X pipeline, and MALTX literature our determined of is suggesting expansion planned milestone also in company. Phase This Once study escalation have is emerging activity marks is important monotherapy. from focus our therapies, SGR-XXXX the and patient the will trial we announced is This current our inhibitor, While inhibition MALTX SGR-XXXX an other dose pharmacodynamics first that Today, autoimmune BTK

evidence Data help program, uterine cancer avoid programs WeeX our underscored including concept activity the cancers. other effects need, programs proof have identifying drug-drug can ovarian and properties has from of WeeX and WeeX other high companies’ highly of importance been to that of off-target molecules that provided WeeX clinical clinical have with observed unmet from with in data selective also of with forms several Moving optimized inhibitors. interactions in

multiple already have We potent, lead pharmacodynamic activity demonstrate with selective compounds identified ADME properties. pharmacokinetic that antitumor from series desirable and are and

afford inhibitor expect potential additional We in in us a half an the combinations. the of time select using to IND are believe characterize candidate benchmark in XXXX. the continuing first the XXXX WeeX first to and now for and will advance class to development preclinical studies best our and We taking opportunity of molecules half submit

will xenograft in report repair for inhibitor we the Annual new strong next of Today, present that in and a and inhibition full SGR-XXXX AML. patients inhibitors, on care presenting our Now, vitro in models in pathway. a suggesting or forward model. lines abstracts cell damage CDCX strategy In demonstrated for to also therapeutic look venetoclax a the month. program, published XXth. DNA cell today I the antitumor at activity other poster CDCX is we CDCX December agents, of in we AML target that or refractory treating Meeting preclinical ASH our AML in American the AML announced with standard turn strong Society to We resistant shows Hematology antitumor will SGR-XXXX FLTX to relapsed the potential activity data vivo SGR-XXXX

to XXXX. progress the IND continue IND we towards summary, the programs to this of in in half also and wholly-owned advancing. regulatory of immunology study programs oncology in clearance, X program are expect second XXXX. expand Phase Subject development first to for diverse half the FDA to and is our expect a to of submit Activities initiate and portfolio In our making submission We discovery to progressing. an are our

with are generated our Ramy. creation over the are about have on forward now already opportunities pleased coming from updating the look ahead. portfolio the progress We and months. R&D value We excited value to our turn to I we will over back you it

Ramy Farid

Karen. Thanks,

are year. quarter the are progress results pleased with really third We our and we this making

a focused we’d balanced for value on strong a have We Operator? on continued success. objectives that software key happy validated questions. platform, business we remain time, this and model will we the based to take highly believe generate your be us and At position

Operator

Thank will Sandler. you. Piper Kim first question come [Operator of Do Instructions] from Our

Your line is open.

Do Kim

taking Hi. my the progress. congrats Thanks and on question for

impact that I if you FX how components small from of Geoff, it? wondering to the First influence groups larger the was other? about, those on the guidance And of than Did small, each those the and impact guidance. could biotech from one more was FX, quantify talked software you said customers small the the customers. you was

Geoff Porges

Do. Sure. Thanks the for question,

the right. I three Those you each but a give are buckets to, those. let more on of that you alluded color bit me So, little are

U.S. business conducted First, largely on our FX, dollars. is in

Our contracts U.S. in are priced dollars.

direct So, of fluctuations. relatively insulated we’re exchange against impact rate

small. Now, a but cash relatively held our in impact there currencies, in that’s are terms is that modest our receivables of and balances other

up anticipated. us point we less than at end their earlier our had U.S. which a in contracts to However, are local in tend dollars top in probably fixed fully our there relatively that some the that’s U.S. yielding budgets customers they who for against isn’t currencies, fact cases in because revenue are and running of anticipated, for is budgets is -- in the in priced year dollars have

local opportunities because also U.S. anticipated. having higher a revenue we the of we the outside Now, XX% there are in higher value the to finding of revenue step of their software are currencies, their that That’s comes less to our effect on an up particularly obviously that that level

uncertainty the capital second in The markets. is the effect biopharma

on are consolidated cash, two of or software further priority of in one biopharma their are conserve back programs who and companies their discovery. scaling or rather seeing clinical purchases not We investing small as are to handful they focusing their a are customers

think, little seeing seeing as we effect created by hidden contributors year, of bigger companies. So, the and of future, I is markets capital been the the in the hospitable new emerging companies new effect our again, are growth capital to a near-term aren’t just that to bit that. that we haven’t But the software this for become in markets because

companies in the So showed this new there’s that ‘XX up haven’t in numbers. ‘XX up and same year shown

more adoption We year, the our large see the for also those the there uncertainty the them. end the customers. opportunities year. in end the by of uncertainty there those occur, is that mentioned I we guidance towards both, guidance. customers. magnitude to are change believe Typically towards And our also the the about overall But reflected step-ups of and will is largest about step-ups in when still made we Lastly, steps of of range but

direct three in of In I terms to guidance. hope the in magnitude and the the terms of you, the question, impact probably roughly the for contribution Do. to answer that your the question equal of the effects, answers change

Do Kim

the Geoff. for all Yes. a Thanks And Karen. question for details,

and trial, Can up patients. open plan the you start have you to many U.S. if geographic the you clinical locations, you enrolling sites how sites to On you about to talk ready MALTX clinical other that you’re said activate, for? plan

Karen Akinsanya

working initiating hard been this on very we Yes, study. have

year. the is goal an us with important for As know, And this this progress. you we’re pleased

U.S. broadly reaching are to in sites the out We

you space As right very active is lymphoma now. a know,

obviously, evaluate to the but And a have across opportunity that sites to we’re continue of very handful We globally. U.S., sites, consider the with broadly working actively. also we

off point. that at taken the table haven’t this We

to this and forward. so, to something as continues monitor And trial discuss move continue that’s we

Operator

come Lebowitz will from question next of David Our Citi.

David Lebowitz

on prior for for the provided might previously come moving number this of XXXX? guess business, discovery the have from million the got I increase might more elaborate where on not slightly guidance, above the And Thank could which to $XXX affect that drug guidance how year? just you might moved or this you.

Ramy Farid

just comment the I’ll or million. -- question quickly on really about you comment $XXX Ramy, the the this is made

we’ll objective remember in revenue. formal the We part But, at guidance that you first of that goal you going ‘XX. was -- strategic $XXX drug that that provided respond the if Geoff I think believe Karen beginning February discovery in to were provide million question. still the So, we Geoff, we that on can or achieve actually number. to of And of

Geoff Porges

David. Hi, Sure.

to point we’re of but successfully it continuing So, the also to, We’ve the some internally, in for reasonable raised we year came you’re us that collaborations came of recognition the Part guidance we’ve that the of we that revenue of been where think the programs revenue of raise from invest held the alluded from account. drug returned a advanced deferred number to the right. to have the from one in revenue that and that program to programs, recognize for it’s was BMS where discovery. other the previously

the that’s flowed of as above recognized end of through in the after expect has. we or some three so, quarters are And that year. revenue we guidance Clearly to or cases lower

in given be what reasonable range now, think inevitably And to range to so, and that we’re we we above see. it’s of the we’ll the end be top expect going the

Operator

from Yee Michael will question Jefferies. come next of Our

Unidentified Analyst

the just Yi a deeper in first, is on [ph] This discovery. our on digging from Mike. little drug questions Hi. end, Chen Two

guidance. So, raised you’ve

into Just remainder a revenue part drug from wondering raised plays guidance the of that year. forward XXXX if this any discovery pulled for the there’s

color just Thank question that discontinue could If in collaboration? they why some second discontinuation, to on BMS more to that you be as you that on some color just the you. chose provide more And would could, if great.

Ramy Farid

over Geoff, hand do answer want then part, first the And and to you Karen? to we can

Geoff Porges

Sure.

a multiple So, alluded that composite the as the is across to collaborations. we revenue I in previous programs recognize revenue answer, and of

but of I as programs revenue a host programs, includes and the advanced for year in different collaboration, target on the we’ve recognition opportunities. the the one BMS alluded So, of next to,

revenue see still actually we it to, don’t revenue that wouldn’t achievable. pulled I as alluded that being until we that say Ramy as achievable. it because was forward, see highly on count was we So, as

we to So, necessarily doesn’t assuming fact it next that this going that entirety period was recognized that occur in during has and the were we its it year. occurred mean

slices. Our forecasts are basket actually different probability weighted of

So, until at XXX% is it. assumed probability recognize we nothing

Ramy Farid

BMS’s on decision? Karen then, And

Karen Akinsanya

Yes, all, effort collaboration of we BMS say And ‘XX. just you really certainly. of the the discovery phase joint progress let’s committee degrader steering Well, The this program. the is looked as first well. that at know, going the jointly on added in

I remain program. and that in looking at the forward exceptional initial BMS neuroscience also invest to discovery, clinical the those strategic this we we’ve while and identified the excited longer program We is expect during clinic emphasize advancing made this this though molecule phase. to we’ve validated, target about really agree signs others. want work the decision made in we compounds on for in that both by And no translation progress genetically that development they of

to And on in course, the so, we the rest continues mentioned continue [indiscernible] the say, look program. to we forward sharing want along in the look of we And to that and portfolio. that. also jointly more do the opportunities plan XXXX, for of I with it about to horizon. target on our update earlier, investing as We

for so, program BMS. the we continuing with a potential are discuss new And to

Operator

next will from of BMO Nachman Markets. Capital Gary Our question come

Your line open. is

Gary Nachman

Hi. Geoff, the just Good afternoon. revenue. to following effects the software on three up

that the low don’t something of well about the issue year? near-term end how understand more much is a how next exactly of be guidance are this could into you So, that point. I at versus protracted And thinking

you your comments into economic or about environment. maybe that and is situation So, customers? impacting the weaved Ramy, dynamics, being software the challenges Just how those that’s broader more How that’s on business? academic much the talk for conservatism how And seeing? larger the just there are in

Geoff Porges

address the Ramy, question. do you first I’ll part want And Gary’s in? me jump to of

Ramy Farid

Yes. Thank Please, you. Geoff.

Geoff Porges

Okay.

to Gary. What’s what that been likely half of versus pose your going year, think a currency effect the for transient? sort all rates to of year disruptions. think is it’s second done lot So this I that exchange that same and I I is to this have caused know next question, what that about alluded headwind the persist don’t we us -- the how particularly certainly

So, I contracts. that those think we will re-base

customers better be -- on much a to foundation deliver be year. will positioned international those with solid growth to next think I

In of terms we of the sense managers those want that, have just the end to have to from I -- the getting to the it’s opportunities if, our I what’s when, do But customers, question timing, close get large of those not we is. -- year. finalize it’s and talking then are to to account a not recognize is of that the transactions. don’t committed magnitude

that’s are markets, the that we to, capital then, capital in encompassed what’s of happen I biotech And going if factor in guidance predict environment situations. third remaining probably is the biotech. what’s the range then to the of alluded Gary, the in markets in us So, there. which can wrong either

the people money most think the current will next well in persist problem that year. -- think I into raising that biotech in difficulties

of expect a discovery biotech at months. goals biotech the formed host new with don’t -- of So, be capital, few next and for that customers ambitious to drug I small least are there customers lots

next some year. parallel So anticipate that’s there hope something well of gives color. you that be sort some into I that will we

Ramy Farid

were you with what the you academic? clarify can to you regard just referring then, Is I’m that academic to? And said environment, said, what sorry, you

Gary Nachman

is about you heard economic had misheard business, I say thought in that’s terms software you more prepared just do like in comments like but just academic a you everything environment. how just Maybe thought level, in But the feels of remarks environment the customer. academic challenges, the that in of and I that. mean, terms general. Geoff in your academic overall I the it’s like customers in in corporate I impacting Yes. the I describing have

budgets have well as they and assuming I’m that’s So, leading...

Ramy Farid

good That’s to we still but mention Yes. not It’s question. academic it’s a Well, right. anything fine. happen environment, about

it. address happy So, to

at fraction in it’s We academic for as and our you but very know market, As all feeding really this sense, business, a our future important. commercial value it’s And of far the to that as seeing it’s we’ve generation, we relative and date, in the actually impact and play more of continues years. -- seen that, on And universities grow a we’re we it, more very the scientists, continue It there the computation significant And is, not by and to to way. not focusing over the right. right, of role similar rates at the part course, component, to more more see funding. these looking smaller training. obviously, analysis, it’s are of revenue only training from the and a

have We to curriculum courses, in provide interested and are who online courses, provided increasingly now computation. professors teaching to

then going and at really learn and increased those has are platform Our off to the people for computation. And becoming customers success then the the -- of students company. platform has increased demand for free

well. So, that’s really all going

Gary Nachman

then… Okay. That’s helpful. And

Ramy Farid

good. That was

Gary Nachman

address, it. know thank Yes, been that. important. I question, which think I you other not heard you for then do And day. is a don’t one I but I It’s anyway, long know. But did

your over reevaluate business there. some know time? drug their companies you Reduction especially impact development, will strategies, do the discovery How biopharma will the with how Inflation molecule Act of So, we potential think challenges small

you do thinking So, this it? think will about you guys or you hurt How are help you?

Ramy Farid

Yes.

a Here’s on It’s of it. an minds. lot course, important it’s question, of how we’re people’s about and thinking

And years that So, -- a while, number it’s continuing. of been started certainly likely is the pharma there for seeing biologics in is trend Inflation molecule that shift from small contributing a we’ve Reduction Act to the that ago, a really that. to

on we’ve -- the said, molecule completely this predicting And small is like Now, to physics has this actually physics. act. the large address remember, a And again, is a therapeutics. predicting the actually as have exact physics the we a a same the platform I platform is protein. of potency started modality, protein to is to that potency of agnostic to trend physics-based And before and a protein molecule our exciting advancing biologics been thing been that focused

we’ve can be And in already this an actually very platform So, efficaciously projects, that design number is important including been on. of a AstraZeneca with collaboration used our working in of biologics. actually area we’ve our demonstrated the

in -- a the or broader your range invest it collaboration, on more in yes, a we’re question continuing computational Remember the more two our number engaging challenges own the is, platform half platform was continuing ago, our advance customers to ago. advancing and a we’re to years their biologics. So, And to obviously, even we years so. started what we’re partnerships, of in building using the of answer design so, and around to either AstraZeneca potential address of programs, conversations

Karen Akinsanya

emphasis maybe add And obviously, obviously companies candidate programs. speed with molecule to And that can’t a small think addressed just the will greater as biologic. to they can for an develop and be impact that development important of molecules, a be in approach we get to important on has platform we that, speed targets Yes. a

hope we help way. So, to some in

Ramy Farid

important point. Thanks, Karen. Yes. a That’s really

Operator

next will come of Morgan question Our from Purohit Vikram Stanley.

Vikram Purohit

So quick from just our one one side.

types communicate? you you and you enroll? some be if you’re of you to share do enrollment and time looking patient data to And wanted to open enrollment, possible reasonable to at the program, the to what tumor MALTX quick initial you to be initially point it’s be expect looking to think then types And enroll here. line what forward see just will think now some what the I color expect that have of sites could On for profiles about pace to

Karen Akinsanya

Yes.

and enrolling focus the to lymphoma escalation all is this really this So, is comers to that trial, design data safety, of pharmacokinetics resistant it tolerability, on relapsed trial enroll in pharmacodynamics. a we’re and gather dose does profile. trial, The with that in this determine terms of the a patients

We signs of there to be information will initial if which determine scan patients will are though from allow collecting any us activity.

while open obviously tolerability, remain our And activity so, any the on focus signs is safety, we assessing of the trial proceeds. as to

position we In obviously good we’ll when point, quickly to enrollment this updating when our We necessarily, timing, progress, just we’re share we and in you obviously do with don’t can. are able And make to be of as be we as and Obviously, we begun disclose timelines, sharing terms data. have on as moving at we can so. have as you a information that we’ll here. specific

As can studying patient to proceeds, might you as healthy as the trial volunteers, you’re that dose know. opposed escalation take months some while populations, obviously,

Vikram Purohit

Understood. then. a development And question quick follow-up on business a then maybe all catch then,

And Looking you? your forms partnerships? of could appetite be to partnerships for to is what interesting if appetite, what’s there XXXX,

Karen Akinsanya

Well, I can start.

As space forms. you over focused to really essentially the of on two business sort has we last know, we’ve XX been development years. in That X the different improving have opportunities taken the

collaborations. The first the is de novo

we ago. with Last of now forward where deal will We’ve As novo right. then have us established where Lab a develop. lot molecules companies, decade equity that discover year opt you that co-commercialization into know, and like were collaborations moved Zai saw you are a co-development, around we collaborating have BMS de they we do these relationships Lilly the in to

And assets. patients, line looking in a collaborations be But we business that our around the retain new of to And obviously more access sight types access sense partner so, though, be no lot those us, be for also all on to, right But in it cases, and programs. of conversations be accelerate of development rights will will time some a as of wholly-owned to will products makes to partnering on, we licensing before, continue. relationships a where that the again, We, over combination like agents, focusing may other out now. to we’ve the as where to those well cases, set obviously said for time. moves

sharing about into excited over is assets there and the the really share be the move as data are or to obviously years next We for gathering so. more we’ll our more but clinic

Vikram Purohit

Okay, understood. you. Thank

Operator

our question Capital Markets. Instructions] Gaurav will Berenberg Thank come of Goparaju [Operator next And from you.

Your line is open.

Gaurav Goparaju

everyone. afternoon, Good Hey.

two for ones me. quick Just

just existing software On so side, bolster in what customers development expect any your the introducing scale? the software clinical business development segment. internal difficulty] one over or then, on the secondly, we to thinking portfolio reinvesting [Technical Thanks. growth costs as about first of solutions? in annual near-term you of of for just products your ways Just should committed working on different to maybe burn cash are the scope And to expand the this more new

Ramy Farid

said. you you I I in sure. you first or whole say on platform? words of So general, the say the energy the one wasn’t question, missed just did did

Gaurav Goparaju

general, just in working said I on…

Ramy Farid

In general.

Gaurav Goparaju

that. Yes, new just on the it be development could cycle, solutions, software discovery elsewhere more in

Ramy Farid

That’s question. perfect. yes, really important a Yes, thanks. Yes,

really company. So, innovation history of and long as see science and ourselves you a ours know, we a been as That’s it continues.

We the time, are into me of to points. let but breakthroughs really give I amount to make committed a number huge categories. Obviously, spend won’t high continuing And you in the science. fall of a they

and target structures The really areas there on we of experimental promise for we the targets. in computational targets we One can to enable in future the foreseeable about small physics-based that are promising fraction of the big nearly that is now will think a that impact methods be of in incredibly really are -- have have these have the we methods in amenable all growth be really to is enablement. genome. exciting. very transformational. But human future, to future, the That’s therefore the are which obviously number think we’re and excited And

The focused are advancing is, that those we other on programs. course, of area

add, side, projects. And science has at on experimental area we about. of calculate with this is an as very, a we’re times, sufficient every effort an impact a putting a much is projects, many number experimental a property level on that is a it properties but that. the said excited accuracy are we can’t And of there of of accuracy. And There we properties very lot to yet more number profound with compute be can lot with of impact have that material the essentially we into So, more done. to that we’re

in about that the of a One is areas lot battery talked research. we’ve

moment, by impact essentially So, see And trial batteries and at the of designed that. are error. the we

are long frustratingly batteries that have they We get passivated. -- to long take charge,

all physics them believe as at of the And design of of that those molecular Some core challenges know. we methods. based are and all flammable, is we

that occurring of that’s can complex the think really few chemistry examples. that in a progress into impact a the area underlies for it technology impact on science effort we with and have are putting the Those And electrode-electrolyte just advancing interface. can pretty the sort the profound this significant we’re So, that a demand inside have. batteries the at

Geoff Porges

burn? should Ramy touch I something cash on

Ramy Farid

Oh, please. Yes.

Geoff Porges

Yes.

reported your quarter, cash burn question compared of million Sorry. second Gaurav, million quarter. you that approximately to $XX this and last $XX we saw

If about range sheet. you on year, QX, over been the we in per the I of end At had of look balance million quarter. think million end $XX that the it’s of $XXX the the roughly

four cash. we of have approximately, So years

we that the the we over revenue software that grow. point leverage. but few can some sheet a And we equity But grow, to heavily we of will still continue see expect the right and our that burn business I think what invested to last from that the so really see moderate. think the we -- but it like cash operating seems is continue should pretty now investments where to, at alluded in we’re we’ve expenses years, overall to in should Karen start And opportunities that have lot included the aren’t now. programs some even balance of

moderation cash So, cash to also come a opportunities burn. I see for our lot a of and of additional in,

to you profitability. Gaurav, As haven’t know, we committed

been starting our lots And that. to described, from for investments can see think to as lots invest really have return the see and tremendous making you our we’re see, we value portfolio. runway core continuing timeline Ramy a in And set we create from of in nice platform. a just I haven’t We discovery to

to so long So, it’s question. answer the --

great We balance sheet. have a

going I business sides invest. think to continue terrific but And both equally plan of the the on opportunities opportunities see you’ll to prosecute to operating we to those forward, fullest. leverage

Operator

conclude further time. This One moment. questions I at today’s call. no this am will showing

pleasant may all now disconnect and You have a day.

Schrödinger (SDGR) 4 Nov 222022 Q3 Earnings call transcript