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“Convergence company taking over Biotech” — What’s Jeff Brown’s “Small Cap Company Using AI To Discover Drugs?”

"A new class of biotech companies is popping up, seemingly out of nowhere.... They've found a way to 'skip ahead' in the drug development process by 20 years or more... "What's being teased in ads for Exponential Tech Investor?

By Travis Johnson, Stock Gumshoe, September 29, 2021

The first solution to this teaser pitch from Jeff Brown was originally published on May 13, but we’re getting more of these “Convergence” ads from him, and more reader questions, so as we approach the six-month birthday of this pitch I’ve updated our coverage below with some new thoughts and new numbers from the company. The ad itself doesn’t seem to have changed, it still carries an April 2021 date in the fine print at the bottom, but the ads are still, of course, full of “you don’t have much time left to buy” urgency. We’ve kept the comments from the original article attached below, in case that provides any perspective.

It’s an impressive-sounding artificial intelligence drug discovery pitch, to be sure, all about how AI can make the discovery and testing of new drugs far more effective and efficient… and, of course, there’s “one tiny company” at the heart of it all, which you’ll only learn about if you pony up $2,000 for a subscription to his Exponential Tech Investor.

Or, of course, if you keep reading and seeing what the Thinkolator can reveal for us… at a much more free-ish price. Though the real cost, of course, is that you’ll have to think for yourself a little bit. It’s OK, thinking can be fun!

This is the latest summary on their newsletter order form:

“This small-cap sits at the intersection of AI and biotechnology. It’s entered contracts with all of Big Pharma. It’s backed by connected billionaires like Bill Gates, David E. Shaw, and Ron Baron. It’s been called “even more compelling than an early-stage Tesla” by Citron Research. And now it sits on the verge of creating its very own cure — a drug that would completely transform modern medicine if discovered successfully.

“And yet it still remains a secret to the vast majority of the world…”

And here’s how the ad originally drew us in back in May…

“While Amazon is using AI to modernize the brick-and-mortar shopping experience, a small, little-known company is using AI to modernize the entire biotechnology industry.

“In fact, this convergence of AI and biotech is completely changing the way drug discovery and therapeutic development is done….

“AI can quickly and cheaply screen a database of existing drugs to determine which ones have a reasonable probability of being effective against other disease targets. That takes much of the guesswork out.

“And it saves millions of dollars and valuable years in the process.”

And then as you proceed to the “presentation” we get the “behind the scenes” references to secret locations and unknown companies…

“Behind the scenes, at a facility tucked away in the northeastern corner of the United States…

“This explosive stock market event—this “Convergence” that’s happened just a few times in human history—is happening again…

“It’s happening at a small cap biotech company, 1% the size of Johnson & Johnson.

“And it’s upending the world of modern medicine as we know it.”

Johnson & Johnson (no relation, sadly) is a $450 billion company, so 1% of that size ain’t exactly tiny… but yes, we’ll stipulate that $4.5 billion would be considered a “small cap” these days. Any other clues?

Yep, we get plenty of hints… but first, a little rundown on what this company’s technology is doing. First, the inefficiencies that create the opportunity:

“… human drug researchers don’t really know what they’re doing…

“Only 1 in 5,000 drugs that are discovered in the lab… actually make it to market….

The process involves sorting through thousands of possible molecular combinations… trying to ‘guess’ the right sequence—the sequence that will become an FDA-approved drug.

“It’s like trying to randomly guess a password….

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“Modern medicine as we know it—and the many miraculous cures we’ve found so far…

“All of it was built on that “slot machine”—on that 0.02%.

“So imagine this…

“Imagine bumping that success rate up… to just 1%.

“What would that mean?

“Well, that would mean 50 times more drugs on the market.

“50 times as many answers to pain, suffering, and disease.”

That’s the basic spiel — smarter systems lead to better drug discovery, leading to more and better drugs, which would lead, one assumes, to more profits for those drug developers.

And that system, of course, is being sold by a small company. Here’s more from the pitch:

“This small cap has found a “new way” to discover drugs.

“This ‘new way’ isn’t aiming at 1% better odds… or 2% or even 3%… it’s aimed much, much higher…..

“This small cap is using artificial intelligence to discover drugs—without human input….

“I found this buried down on page 3, line 24 of a protected government document.

“Per this document, this company’s technology can, quote, ‘evaluate billions of molecules per week’ ….

“… if this AI can evaluate just 2 billion molecules per week, that means it’s no less than 10.3 billion percent faster than human beings.

“10.3 billion percent faster than the people who have discovered every cure to date.”

Other clues? Well, that “corner of the Northeastern US is, you may have heard of it, New York City….

“It’s in operation right now, in a lab in New York, at a tiny biotech company.

“Yet you haven’t heard a word about it.

“You haven’t read about it in the mainstream press… The Wall Street Journal hasn’t put it on its front page.”

And there are some big-name investors involved, as always…

“Bill Gates heard about it, of course. He’s purchased over sixteen million shares in this small cap. His fellow billionaires heard about it. David E. Shaw bought over 9 million shares… Ron Baron owns this stock too. So the information was there… somewhere.

“But most people—people like you—have been kept in the dark. Today that changes.”

And there are bunches of other quotes from luminaries and brand names to support Brown’s assertions of the special-ness of this stock…

“The research branch of the infamous hedge fund, Citron Research, called this AI the ‘most disruptive software platform to ever hit the pharmaceutical industry’….

“They also called this company ‘even more compelling than an early-stage Tesla’—they mentioned the word ‘Tesla’ fourteen times throughout the eight-page document….

“A business scholar from the University of Michigan published an analysis in which he wrote, quote, ‘the market is missing the disruptive potential of [this small cap]’….

“Business Wire, a company owned by the oracle of Omaha himself, Warren Buffett, says, ‘[this small cap] is transforming the way therapeutics are discovered.'”

That’s way more info than the Thinkolator needs, thankfully, so we’ve got an answer for you… if you want to join us on that voyage of self-discovery, you can find the sources of those quotes from Citron’s report (Feb. 2020), for example, but we should also call out the silly name-drop of Warren Buffett there — Business Wire is just a press release distribution platform Berkshire Hathaway happens to own, and that quote is included in pretty much every single press release this “secret” company puts out. The full quote, which has nothing to do with Warren Buffett, is…

“Schrödinger is transforming the way therapeutics and materials are discovered. Schrödinger has pioneered a physics-based software platform that enables discovery of high-quality, novel molecules for drug development and materials applications more rapidly and at lower cost compared to traditional methods.”

So yes, this is, as some have no doubt already guessed, a tease leading to a recommendation to buy Schrodinger (SDGR).

Which is an interesting company, for sure, and one that I put in my Lock Box portfolio after it dropped earlier this eyar (though it has dropped further still since then). What else does Jeff Brown say about them?

“Each of the top 20 pharmaceutical companies in the world have now entered contracts with this small cap to use its technology.”

That’s true, they’ve essentially got every major company in the industry using their platform for drug discovery, to at least some degree. It’s sold on subscription, like any other cloud platform, and they had total software revenue of $92.5 million last year, with annual contract value growing at a 16% CAGR over the past seven years — which is not nosebleed growth for a SaaS company, but it has accelerated in recent years (up 22% last year). They have 16 customers who each generate more than $1 million in annual contract value, up from 10 in 2019, and they had 99% customer retention.

That makes them a pretty interesting cloud software company, though it would be understandable if you didn’t feel like paying 40X sales for a software company that’s growing subscription software revenue at 20% a year. That is a little steep, even in the context of the crazy valuations we’ve seen in SaaS land in the past year.

There is more potential growth on the software side, and Schrodinger makes clear in their presentations and investor calls that they believe the growth potential remains high in that sector because their large users are still not really “power users” and can dramatically increase usage of the system (and therefore revenues) as they begin to accept the benefits it provides… but the big potential beyond that base level of subscriptions might be from the other ways in which they get a piece of drugs that are discovered on their platform… more from Jeff Brown on that…

“There’s a reason why everyone is going to hear about this small cap soon—there’s a reason its name could soon appear on the front page of The Wall Street Journal.

“But it’s not just because of its contracts with Big Pharma.

“It actually has to do with the ‘Second Phase’ of this small cap’s business model.”

Oooh, oooh, what is it? What’s the “second phase?”

Prepare to take a blood oath, here’s more from Brown:

“Please understand.

“What I’m about to share next is strictly private.

“I ask that you do not disclose it to anyone, for any reason.

“This stays between you and me….

“This small cap isn’t just renting out its AI to Big Pharma.

“As of today, in virtual secrecy…

“It’s using its AI for itself. To create something remarkable… to create its own ‘miracle’ cure.

“Meaning the gains on the table could be even more massive.

“Because when a small cap company can create its own drug…

“The upside could be bigger than anything we’ve discussed so far.”

OK, so no, it’s not “strictly private” — they haven’t made a huge amount of progress on their plan to develop their own drugs just yet, but they sure talk up the potential with investors every chance they get… this is from their “corporate profile”:

“Schrödinger’s industry-leading computational platform facilitates the research efforts of biopharmaceutical and industrial companies, academic institutions, and government laboratories worldwide. Schrödinger also has wholly-owned and collaborative drug discovery programs in a broad range of therapeutic areas.”

So yes, that’s the basic outline of why any investor would buy the company: The software sales create pretty steady cash flow, and the company has a bunch of collaborations with pharma companies that would lead to royalties on any future approved drugs, as well as a pipeline of it’s own (very early stage) molecules that they’ve discovered and are preparing for possible clinical trials.

The company has been teased before, back in February when Chris Wood touted it (and when the price was about $50 higher)… this is what I said after my first look at the company back then:

“If I were to buy SDGR (I’m not planning to at the moment), it would not be on a near-term bet that something big will happen, it would be on a bet that they might have a dozen good things happen over the next five years, with the growing software sales helping them to avoid burning too much cash while they wait for drug development deals to become commercially meaningful, and I’d try to mostly ignore the share price in the interim — it will probably be a long time before the business catches up with the market valuation, but you can see that it’s clearly possible if the trajectory of their software sales continues and their collaborations yield some fruit and begin to generate meaningful revenue at some point. The main risk today is that, as with so many popular growth stocks, current valuations mean you’re prepaying for quite a bit of success that might or might not happen in the future. Bill Gates waited 10 years before he started selling shares, you might have to wait a bit as well.

“There are only a couple analysts making guesses on SDGR’s future, but right now they expect the company to become profitable next year and for revenues to double between 2020 and 2022. They have continued to raise their price targets over the past few months, but they can’t keep up with the investor enthusiasm for the shares.”

And after the stock fell 40% or so to below $70 in March, I added it to my Lock Box portfolio. Here’s a little bit of what I wrote at the time:

Schrodinger (SDGR) has come up several times in teaser pitches and pundit commentary in recent weeks, and that stock also got clobbered on earnings — so it has now lost about 30% of its value in a week or so, and the share price is back to where it was in December, around $70. The shares are still up 80% since they went public about a year ago, but everything is relative. The reason the shares got clobbered, other than the general panic about richly valued stocks, is that they issued guidance for 2021 revenues that was wildly lower than analysts had been forecasting — I expect that’s partly because of a misunderstanding about how much revenue would be recognized from their big Bristol-Myers Squib deal announced last year, partly conservatism in the face of what is likely to be lumpy revenue, and partly just that we don’t know this company very well yet — they’ve been public for less than a year.

The valuation is still nutty by any historical standard, at 30X next year’s revenue, and that’s probably too much to pay for a cloud software platform that’s still in a fairly niche area of drug discovery… but the reason to consider it is the pharmaceutical partnerships beyond that and the actual drug discovery work, which, if they bear fruit (that’s a big “if”) will lead to milestone payments and royalties. It will be a bumpy ride, and it might fail completely, but it will need time to play out as they develop their drug targets for Bristol-Myers Squib (BMY) and begin to bring their self-developed targets into the clinic, and if the early indications of success turn into something much more compelling it could really snowball with milestone payments and royalties over the next decade….

The primary risk that analysts and investors seem to be worried about is whether or not they’ve “used up” their target market, since they already work with most of the large pharmaceutical companies, but that doesn’t particularly worry me — the platform can be used lightly or heavily, with variable costs, and their customers mostly use it lightly so far… so there’s potential growth as they become familiar with it and begin to use it more, assuming that it continues to work well for them (retention is very strong), and there’s also the just-barely-tapped market outside of pharmaceuticals as they sell their software platform to materials companies who are looking for the best molecular interactions for things like new battery materials.

And how’s the progress? Brown implies that he’s got some special info:

“This small cap is using its AI to create a drug that would, if discovered successfully, completely eradicate one of the deadliest conditions in existence: cancer

“Pancreatic cancer, to be exact.

“This type of cancer has eluded human scientists for decades—and, if nothing is done… it’s set to be the second most common cause of death within the next ten years….

“This cure isn’t just an “idea.”

“This small cap’s AI is already discovering it—as we speak.

“What’s more…

“This possible cure is mere steps away from making it into human patients….

“I know this because it came straight from the CEO’s mouth.

“I’m not adding any interpretation to this.

“He stated, in his own words:

“‘We expect to initiate [the first step of the “golden path”] later this year'”

And, of course, he implies that this info was shared in some secret confab for only the uber-elite…

“This small cap’s CEO didn’t say this to a big crowd… he didn’t say it in an interview on TV…

“He said it somewhere only people like me are looking—a location I frankly can’t disclose at this time.

“What I can say is…

“I believe when this hits the wire, all bets will be off.”

OK, so we can pull back the curtain there… this is just a quote from the CEO’s opening remarks in their March quarterly conference call, the actual words were “we also made excellent progress on our discovery pipeline and expect to initiate IND-enabling studies later this year for multiple programs,” according to the Motley Fool’s transcript.

“IND-enabling” is still a pretty early stage, to be clear — that means you’re doing the lab research that would provide enough data for you to apply for IND status (that stands for Investigational New Drug) with the FDA, and if they approve that then you can put that drug into a human being for the first time as you launch Phase 1 clinical trials. Drug discovery is speeded up by the ability to use AI and their massive processing power to select molecules for their precise interactions with other molecules, but that doesn’t mean the process of actually getting regulatory approval and testing the drugs in humans is going to be any faster than usual, so prepare to wait.

Who knows, though, sometimes stocks move significantly on news that a drug is entering the clinic… or on the first news releases about early results from those clinical trials. Neither of those things will be coming from Schrodinger this year, it appears, this is what their Head of Discovery R&D said in May in their first quarter update:

“I will highlight three of our most advanced programs, MALT1, CDC7 and Wee1. Based on the strong data we have generated to-date, we plan to move forward with IND enabling studies for these programs. Subject to completion of the preclinical data packages, we expect to submit up to three IND applications in 2022, with our first submission expected in the first half of next year. “

That Wee1 inhibitor drug they’re developing, which they call SDGR2, could be used to target pancreatic cancer, so that might be the specific drug Brown is hinting at (though they haven’t narrowed it down that specifically yet), and I’m definitely not an expert on the science involved here… so I’ll just issue my typical reminder that it’s going to take a while, and failure in these early stages is common. Maybe it will be less common with a molecule that is vetted for its physical properties and interactions as well as those discovered using Schrodinger’s technology, perhaps there’s lower probability of surprising side effects or higher probability of efficacy, but that’s really still just conjecture at this point. And yes, that forecast for when they’ll get into the clinic with those three drugs remains the same as of the August quarterly update.

And that also means the news flow might be a little less immediate than Jeff Brown implies (which is common, newsletters need to generate a sense of urgency to make sales), since Schrodinger won’t even be asking for permission to test their first drug on humans for probably a year or so… clinical trials are still quite a ways off. You’ve got time to think it over before their self-developed drugs get onto that “golden path” (which seems to mean just, “beginning clinical trials”).

If you want some further confirmation, that quote about “billions of molecules per week” appears several times in Schrodinger’s SEC filings, (or, if you want to make them seem more mysterious, “protected government documents”), like this in their IPO registration filing (S-1):

“Speed. Our platform is able to evaluate molecules in hours rather than the weeks that it typically takes to synthesize and assay molecules in the laboratory.

“Scale. Our platform can explicitly evaluate billions of molecules per week, whereas traditionally operated discovery projects only synthesize approximately one thousand molecules per year, thereby increasing the probability that we find a novel molecule with the desired property profile.

“Quality. In a peer-reviewed study, our platform was tested against traditional methods for selecting tight-binding molecules and resulted in an eight-fold increase in the number of molecules with the desired affinity.”

We should be clear about what’s being claimed versus what Jeff Brown is touting, however — Schrodinger believes, with evidence, that their platform can help cut the time for drug development in half and make it more efficient and effective. That’s a really big deal, but when teaser pitches start throwing around phrases like “10.3 billion percent faster,” well, we might get an unfortunate tendency to overreact. There are lots of different AI-powered drug-discovery and molecule testing strategies in use now and being developed in labs, Schrodinger’s is not the only one… though it is one platform that has been adopted for at least some use by almost all the major pharma companies, and the company sees a huge potential to ramp up usage as those companies see the results of their initial work and begin to use Schrodinger’s platform more aggressively.

And Schrodinger’s biggest partner is also name-dropped in Brown’s ad, in case you’re curious about the “free” stock he gave away in his presentation:

“I told you earlier I’d give you the ticker of a company on the ground floor of this major moment in biotech and AI — this ‘Convergence’ — for free….

“As a thank you for sticking with me right up to the end, here it is: Bristol-Myers Squibb. Stock ticker “B-M-Y.”

“This company is sitting right at the epicenter of this small cap’s “Convergence”.

“Bristol-Myers Squibb is actually partnering with this small cap.

“They’re looking to take a cut of the profits if one of this small cap’s drugs goes to market, so they’ve agreed to handle the “dirty work,” like marketing and distribution, in return for a piece of this small cap’s sales.

“It’s an incredible deal for Bristol-Myers Squibb.

“But, of course, as great as this deal is… Bristol-Myers Squibb is, as you know, a large cap company. A market cap of $140 billion.

“As I’ve shown you, it might see a modest bump from this news, maybe it won’t—that’s the nature of large cap companies like it.”

That collaboration between Schrodinger and Bristol Myers was announced back in November, and it is a big deal — with the potential for billions of dollars in milestone payments and some good royalties if drugs are successfully developed and commercialized… though investors reacted lustily to the news and drove the shares up dramatically after that, and then sold them off when it became a little clearer that this collaboration was not going to instantly double revenues.

SDGR did not change their forward guidance for 2021 this last quarter (which perhaps is another reason for recent weakness in the shares), so they’re still anticipating something in the range of $133 million in revenue this year — and have made it clear that milestone payments will not be as consistent or imminent as was originally anticipated by some analysts back in November, so they’re not likely to be profitable this year or next.

That’s really the shock to the system that caused the share price to falter earlier this year — analysts overstated the immediate impact of the BMY deal and sent the 2021 revenue estimates to $175 million or so, with expected profitability right away (47 cents/share in earnings forecast), and SDGR threw cold water on that in March and has continued sprinkling water to keep the flames down in the most recent quarter (announced August 12). Now with revenue estimates down quite a bit from that earlier enthusiasm, and with Schrodinger’s update that they expect their software gross margins to fall and their expenses in general to rise faster than revenue this year, profitability is pushed out to 2023, most likely. The business is very hard to predict and analysts have probably over-corrected on the pessimistic side, but the valuation is still steep so the shares are likely to remain volatile. SDGR is valued at a little under 30X 2021 sales and about 19X forecasted 2022 sales.

I continue to think Schrodinger is an appealing speculation for the long term, because of both the possibility of meaningful growth in subscription revenue and the many partnerships and development programs that could bear profitable fruit in the future.

Unless they have huge new collaboration deals to announce at some point, which is inherently unknowable, the next two updates of import will probably be their software revenue growth at the end of the year, since the customer upgrades seem to be concentrated in the fourth quarter, and their launch of clinical trials for their own drugs in development. Which means, I wouldn’t count on anything super-exciting happening in the next few months, the third quarter report is unlikely to bring any big changes in November unless they substantially increase their revenue guidance at that point, and the important Q4 update won’t come until probably the first week of March… and that first IND filing for their own programs could happen anytime, but guidance for “first half of the year” doesn’t often mean they rip out of the gate with that accomplishment in January. You’ve probably got time to think it over.

That software revenue guidance for the balance of the year looks to me like it’s being sandbagged a bit, given that most of their customers renew their annual contracts and increase their usage in the fourth quarter but they’re not projecting much growth in that quarter, so either there’s more risk of some customers being cautious or even losing a customer (which is rare, their retention is in the 96-99% range), or SDGR management is just trying not to over-promise. Hopefully it’s the latter, but I don’t really know.

There are 25 or so collaborative programs moving forward as well, though only five of those are actually in clinical trials at this point, and they’re all early (Phase 1 primarily, though I think one is in Phase 2 now), so there could be a steady roll of milestone payments over the next few years as drugs progress, and they will likely announce new collaborations as well (like the one they announced with Zai Labs over the summer), but the hoped-for royalty portfolio from these collaborations is many years away.

I expect the best hope for a steady rise from here is for the company to consistently surprise with upselling their customers to higher usage of the software platform, or to make more large collaborative agreements like the Bristol-Myers deal last year, and I even think that’s relatively likely to happen over time… but huge milestone payments (for things like drug approvals) or clinical triumphs could easily be years off, and royalties further off still, so there will probably be lots of quarters of overreaction for the stock, both up and down. They’ve got plenty of cash on hand, and I’m willing to be patient (my position is locked up for five years), but I sure don’t know what the stock will do this year. As of now, it is down about 20% since I added it to my Lock Box portfolio. You can check out the company’s September update to their investor overview presentation to get more detail on their progress and plans.

That’s just me, though, and I’m neither a physicist nor a biologist, so maybe I’m missing something terrible or misreading the potential of Schrodinger’s technology — as a non-expert, I’m following the money and putting a lot of weight on the fact that essentially all the big pharma companies are using the platform, and that on average they’re using it more each year. Have a different perspective? Other AI-driven drug discovery stocks you prefer? (There are a bunch of them, many still private and venture-funded.) Please do let us know with a comment below.

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SoGiAm
May 13, 2021 7:52 pm

$SDGR Took a nibble 🙂
Thank you Travis.
Best to ALL!

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TheMerlin
Member
TheMerlin
May 13, 2021 8:34 pm

A couple of years ago Bristol Myers was collaborating with GERN and drove the stock to 7+ and then pulled out driving GERN down to where it has remained since. So, the stock can get a bump from BMY but can also take a hit if something changes with their relationship.

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Richard VEDDER
Richard VEDDER
May 13, 2021 9:10 pm

I take his entry level letter and get the daily “free” letter “The Bleeding Edge” that tout almost daily miracles coming along. Then there is a constant barrage of invitations to the long interviews concerning a hot stock to change ones life – if you subscribe to his pricy letters. But in all honesty his “The Bleeding Edge” is always a very interesting read.

paulthode
May 13, 2021 10:58 pm
Reply to  Richard VEDDER

my view too

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PAUL BENNETT
Member
PAUL BENNETT
May 27, 2021 10:59 am
Reply to  Richard VEDDER

One of the smartest guys out there for advice and although some of his plays have yet to come off, many have already and its a very exciting ride! EDIT is an enormous one still in the making… and they have advised now that news will be published by end of this year… it’s been nearly 18 months in the making but I am sure it will be worth it.

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sunriverjoe
sunriverjoe
May 13, 2021 11:53 pm

Just for a little perspective: I’ve been retired from medicine for 28 years and I can distinctly remember the discussions during my residency (before most of you were born) of computers being able to sort through thousands of molecules looking for “the one” and how that would transform drug development. The point of course, is this is not a startling new idea that #SDGR has a lock on. It is in fact widely used. In my opinion, the most important evaluation of a new drug candidate, continues to be by a highly knowledgeable human.

Computers are very good at sorting but,

The big question is, does #SDGR have some secret sauce in their AI algorithms that make them significantly better than other AI programs doing the same thing? Considering the cost of developing a drug, that’s a billion dollar question.

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Gerard O'Dowd
Member
May 14, 2021 1:11 am

Travis: Thank you for the head ups and analysis on Schrödinger (SDGR). It is a very interesting technology and company to follow as it matures in the years ahead.

I like the market potential for SAAS subscriptions for their AI molecular design software not only by Big Pharma, but by smaller startup biotech firm, as well, if they can afford the subscription fees. Any idea of the costs for a monthly subscription for their software?

As you mentioned, I can also see material science R&D applications looking at novel combinations of basic elements to achieve incremental product improvements or as an aid to achieve specific technical objectives in other industries. Silicon semiconductor chip design with “doping” by adding atoms of particular charge or valence comes to mind as one example.

The number of small startup Biotech Pharma companies have increased in number in recent years; and the number of clinical trials at various stages of the drug development process and NDA’s submitted to the FDA have markedly accelerated.

I don’t know the name or symbols of competing companies. It would be fun to investigate this AI technology space a bit. In recent years Google announced they had developed AI software to rapidly predict the 3D shape of protein molecules based on the amino acid or genetic nucleotide sequence and possibly X-ray crystal diffraction. An amazing achievement. Do you know if a licensing relationship exists between GOOG and SDGR?

Thank you.

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losar55
losar55
May 14, 2021 7:10 am

I also receive the bleeding edge and i like it.
Also Jeff Brown s take on corona measures has been very revealing
Not sure which is the better investment now Bristol Myers or Schrodinger.
Maybe both to combine value portfolio with growth portfolio.
Thank you travis for this info

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lalgulab12
May 14, 2021 11:26 am

Polaris Quantum Biotech is worth watching

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lalgulab12
May 14, 2021 11:31 am

Get into the GNOM etf to get a slice of the biotech revolution

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SoGiAm
May 14, 2021 10:25 pm
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igatterb
Irregular
igatterb
May 16, 2021 9:04 am

I also thought he meant Schrodinger, but he gave away for free—only on camera—the name and stock ticker : Cognex!

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kmann70000
kmann70000
May 16, 2021 2:10 pm
Reply to  igatterb

I have a subscription to Brownstone Research and can verify that Schrodinger is in the Exponential Tech Investor portfolio. Cognex is in the Near Future Report portfolio. Good job Travis.

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Julie Ash
Guest
Julie Ash
September 1, 2021 11:25 am
Reply to  kmann70000

Hi, I thought the Convergence Biotech Co was a small cap $5.00 stock? SDGR is in the $60.00 price range. Can you tell us if you know the name and stock symbol of this small cap? P.S. I joined Near Future and Unchained Profits
Thanks, Julie

C Eti
Guest
C Eti
May 19, 2021 1:09 pm

Travis … U da man !! … the ultimate go to source for unraveling the outrageous and massive time consuming sales pitches from so many hucksters.

Last edited 2 years ago by C Eti
Quantum_Mechanic
Guest
Quantum_Mechanic
May 19, 2021 1:57 pm

The article focuses mainly on drug discovery, but materials science is another major wide application area of Schrödinger’s powerful, versatile technology.

SDGR is ~$62 today, about half its 52-week high of $117 in February 2021. In February 2020, Citron Research’s 2020 target price was $80 (https://citronresearch.com/wp-content/uploads/2020/02/Citron-Updates-Schrodinger-SDGR.pdf). Analysts’ average 1-year target price is currently ~$91, according to Yahoo Finance. These price targets were exceeded earlier this year, though the current price is far below them.

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Dave B
Member
Dave B
May 23, 2021 3:20 am

Looking @ the chart, I would say with 80% confidence, SDGR has made a short term bottom a week or so ago @ $57.32, the date of this article! I have it making a move to about $90.
I wish the Thinkolator could factor in a few more variables using years of data from the articles.
Timing Data to buy, since obviously teased stocks & articles are to buy.
Factors such to find X bottom price, through hindsight, based on WHEN the article was teased, WHEN it was presented on Stockgumshoe. As with most media mentions of a stock it’s much closer to a top. When I hear news on a stocks performance, it will almost always be lower a month to 6 months in the future.

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Last edited 2 years ago by swiftstroker
outsider
May 25, 2021 3:54 pm

asxc is a speculation here

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Michael Axt
Guest
Michael Axt
June 4, 2021 2:00 am

Brilliant! Thank you. I have done the same and put a small investment in a “lock box.”

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ronwill
September 29, 2021 6:31 pm

The first Motley Fool recommendation for SDGR that I see is 19 OCT 2020, ownership portfolio.

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ironmac
Irregular
ironmac
September 29, 2021 5:23 pm

I just added this a couple of days ago. Not due to Brown’s research (his COVID comments made me cancel all of his emails along with the constant spamming) but it was through Luke Lango’s service.

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Tiago Galvão
Member
Tiago Galvão
September 29, 2021 6:31 pm

Almost all codes and softwares used to design drugs, chemicals and materials have incorporated or are incorporating machine learning and hence socalled AI. In these fields, machine learning has been used for decades, since it’s mostly tabular numerical data. The critical think is to obtain features, and there are many many tools for that. Moreover, its not difficult to have most large pharmaceutical companies as clients, since people in this field usually use many different tools for this purpose. Many of them are even open-source, and can be even better for particular purposes.

Schrodinger is very innovative, but it’s not unique at all. Nevertheless, these codes can be quite sticky and be used for decades, even when better ones exist. It’s a very complex problem, much more than making people click on ads, where you try different things to see if you can find something or improve your results.

This is just something to consider. I’ve no opinion about Schrodinger as an invesment, it might make you money for sure, but as a tool it’s nothing really new.

tko1x1
tko1x1
September 29, 2021 8:53 pm

Travis, you have such a great presentation and details that we all benefit. Glad I am a member and a long time reader. Thanks

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Walter Pisary
Member
Walter Pisary
September 29, 2021 9:21 pm

Here’s one to procrastination. I missed the hype and discussion in March and was able to add a nibble to a long shot/long term portfolio at a much more attractive valuation.
As far as JB Covid comments — I think, it helps to see different points of view in order to make your own informed decisions. There are crazies on either sides of this debate, their point of view is best ignored. But he is saying reasonable things, and so do many people on the other side, and that’s how you decide what’s best for you.

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