#6 - Schrodinger (NASDAQ:SDGR)
One of the obstacles for bio pharmaceutical stocks is the time it takes to bring drugs to market. That's because the process of matching molecular behavior with potential outcomes is tedious and expensive. And that cost is hard to bear when considering that many drugs never make it out of clinical trials.
However, it’s also a process that is being made easier through the use of AI. Schrodinger Inc. (NASDAQ: SDGR) is a small-cap company that is using AI to assist some of the biggest industry names with drug discovery. That’s helping to bring revenue in the door today. The company also has a proprietary pipeline of drugs that are years away from approval.
The risk-reward proposition for SDGR stock is clear. As noted above, the company is generating revenue, but it’s not profitable yet, and that won’t be coming in the next 12 months or longer. But at around $20 per share as of August 27, 2024, opening a small position today may pay off in the future.
About Schrödinger
Schrödinger, Inc, together with its subsidiaries, develops physics-based computational platform that enables discovery of novel molecules for drug development and materials applications. The company operates in two segments, Software and Drug Discovery. The Software segment is focused on licensing its software to transform molecular discovery for life sciences and materials science industries.
Read More - Current Price
- $21.46
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 8 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $32.90 (53.3% Upside)
