In this article I would like to discuss a somewhat underfollowed company with the potential to serve basically every material industry on the planet.
Schrodinger (NASDAQ:SDGR) at it's core, is a software and computing company. The company formally competes in a market called molecular modelling and if you are confused as to what exactly that means, you are not alone.
Schrodinger essentially takes billions of known molecules and uses a physics based computational system along with AI to predict which molecules in combination should achieve a specific desired result. This can be applied to numerous different materials. However, the company has chosen to focus on drug development for its opening act as a public company.
This approach, that they have pioneered is head and shoulders ahead of what was and still is basically a hope and pray approach to drug development. To use an analogy, drug and material development prior to Schrodinger's approach was like trying to find your car keys in the dark. Schrodinger's platform is akin to wearing night vision goggles.
The company can further use its physics-based approach to determine potential side effects of specific medicines and potential interactions with other drugs, theoretically limiting adverse events during the clinical phase.
Not only does the company's approach simply make sense, it currently is able to save roughly 50% of a drug company's most precious resource, time!
Source: Schrödinger
And this technology is truly just in its infancy. Schrodinger's technology improves incrementally with each compound it simulates even without greater computational advancements due to the fact that with each molecule modelled, the better the end data becomes.
The pot of gold at the end of this rainbow is simply the data. Once Schrodinger is able to predict and model each of the countless billions of molecules available with precise accuracy, it
