Schrödinger Announces Multi-Target Collaboration and Expanded Software Licensing Agreement with Novartis
Schrödinger (SDGR) has announced a significant collaboration with Novartis comprising two major agreements. First, a research collaboration and license agreement where Schrödinger will receive $150 million upfront and is eligible for up to $2.3 billion in milestone payments plus royalties. Second, an expanded three-year software agreement giving Novartis broader access to Schrödinger's computational predictive modeling technology.
The companies will jointly work on multiple development candidates in Novartis's core therapeutic areas. While both companies will share discovery responsibilities, Novartis will handle clinical development, manufacturing, and global commercialization. The royalty structure includes tiered mid single-digit to low double-digit percentages on net sales.
Schrödinger (SDGR) ha annunciato una collaborazione significativa con Novartis che comprende due importanti accordi. Innanzitutto, un accordo di collaborazione per la ricerca e di licenza in cui Schrödinger riceverà $150 milioni in anticipo e sarà idonea a ricevere fino a $2,3 miliardi in pagamenti di traguardo più royalties. In secondo luogo, un accordo software ampliato di tre anni che darà a Novartis un accesso più ampio alla tecnologia di modellizzazione predittiva computazionale di Schrödinger.
Le aziende lavoreranno congiuntamente su diversi candidati allo sviluppo nelle aree terapeutiche principali di Novartis. Mentre entrambe le aziende condivideranno le responsabilità di scoperta, Novartis si occuperà dello sviluppo clinico, della produzione e della commercializzazione globale. La struttura delle royalties prevede percentuali a scaglioni che vanno da singole cifre medie a doppie cifre basse sulle vendite nette.
Schrödinger (SDGR) ha anunciado una colaboración significativa con Novartis que incluye dos acuerdos importantes. Primero, un acuerdo de colaboración en investigación y licencia donde Schrödinger recibirá $150 millones por adelantado y será elegible para recibir hasta $2.3 mil millones en pagos por hitos más regalías. En segundo lugar, un acuerdo de software expandido de tres años que le dará a Novartis un acceso más amplio a la tecnología de modelado predictivo computacional de Schrödinger.
Las empresas trabajarán juntas en múltiples candidatos de desarrollo en las áreas terapéuticas centrales de Novartis. Mientras que ambas empresas compartirán responsabilidades de descubrimiento, Novartis se encargará del desarrollo clínico, la fabricación y la comercialización global. La estructura de regalías incluye porcentajes escalonados de cifras individuales medias a cifras dobles bajas sobre las ventas netas.
슈뢰딩거(SDGR)는 노바르티스와 중요한 협력을 발표했으며, 여기에는 두 가지 주요 계약이 포함됩니다. 첫째, 연구 협력 및 라이선스 계약으로 슈뢰딩거는 1억 5천만 달러의 선불을 받고, 최대 23억 달러의 이정표 지급금과 로열티를 받을 수 있습니다. 둘째, 노바르티스에게 슈뢰딩거의 계산적 예측 모델링 기술에 대한 더 폭넓은 접근을 제공하는 3년간의 소프트웨어 계약이 확대되었습니다.
양사는 노바르티스의 핵심 치료 분야에서 여러 개발 후보에 대해 공동으로 작업할 것입니다. 양사는 발견 책임을 공유하지만, 노바르티스가 임상 개발, 제조 및 글로벌 상용화를 맡습니다. 로열티 구조는 순매출에 대한 중간 단일 및 저지 면의 백분율을 계층적으로 포함합니다.
Schrödinger (SDGR) a annoncé une collaboration significative avec Novartis comprenant deux accords majeurs. Tout d'abord, un accord de collaboration en recherche et de licence dans lequel Schrödinger recevra 150 millions de dollars d'avance et sera éligible à jusqu'à 2,3 milliards de dollars de paiements d'étape plus des redevances. Deuxièmement, un accord logiciel élargi de trois ans donnant à Novartis un accès plus large à la technologie de modélisation prédictive computationnelle de Schrödinger.
Les entreprises travailleront conjointement sur plusieurs candidats au développement dans les principales zones thérapeutiques de Novartis. Bien que les deux entreprises partageront les responsabilités de découverte, Novartis s'occupera du développement clinique, de la fabrication et de la commercialisation mondiale. La structure des redevances comprend des pourcentages en cascade allant de chiffres simples moyens à des chiffres doubles bas sur les ventes nettes.
Schrödinger (SDGR) hat eine bedeutende Zusammenarbeit mit Novartis angekündigt, die zwei wichtige Vereinbarungen umfasst. Erstens, eine Forschungszusammenarbeit und Lizenzvereinbarung, bei der Schrödinger 150 Millionen Dollar im Voraus erhält und Anspruch auf bis zu 2,3 Milliarden Dollar an Meilensteinzahlungen plus Lizenzgebühren hat. Zweitens, eine erweiterte Softwarevereinbarung über drei Jahre, die Novartis einen breiteren Zugang zu Schrödingers computergestützter prädiktiver Modellierungstechnologie gibt.
Die Unternehmen werden gemeinsam an mehreren Entwicklungskandidaten in den zentralen Therapiegebieten von Novartis arbeiten. Während beide Unternehmen die Entdeckungsverantwortungen teilen, wird Novartis die klinische Entwicklung, die Herstellung und die globale Kommerzialisierung übernehmen. Die Lizenzstruktur umfasst gestaffelte prozentuale Anteile im mittleren einstelligen bis niedrigen zweistelligen Bereich auf Nettoumsätze.
- Secured $150 million upfront payment from Novartis
- Potential to earn up to $2.3 billion in milestone payments
- Additional revenue stream from tiered royalties (mid single-digit to low double-digit)
- Expanded three-year software licensing agreement with Novartis
- Risk and cost sharing structure for drug development
- Development and commercialization control transferred to Novartis
- Success dependent on meeting milestone requirements
Insights
This collaboration represents a significant strategic partnership in the biotech sector. The
The expanded software licensing agreement strengthens Schrödinger's position as a leading computational platform provider. This dual-nature deal (research collaboration + software licensing) creates multiple revenue streams and reduces risk. The partnership with Novartis, a top-tier pharma company, validates Schrödinger's technology and could accelerate their drug discovery timeline significantly.
The expanded software deployment across Novartis's global research organization marks a significant technological advancement in drug discovery. The "predict first" computational approach represents a paradigm shift in pharmaceutical research, potentially reducing both time and costs in the drug development process. The comprehensive support for platform integration suggests a deep technological partnership that goes beyond typical licensing agreements.
This enterprise-wide implementation could serve as a blueprint for future industry-wide adoption of computational drug discovery platforms, positioning Schrödinger as a key technology provider in the pharmaceutical R&D space.
Schrödinger to receive
Expanded multi-year software agreement enables technology deployment at significant scale across Novartis’s global research organization
Schrödinger to host third quarter 2024 financial results webcast today at 8:00 a.m. ET
“We are delighted to work with Novartis and leverage their strong expertise to jointly advance several of Schrödinger’s existing non-oncology discovery programs as well as collaborate on additional programs,” said Karen Akinsanya, Ph.D., president of R&D, therapeutics at Schrödinger. “This builds on more than a decade of productive collaborations with pharmaceutical partners, and companies we have co-founded, and is a testament to the track record of our world-class therapeutics team.”
“Our commitment to working at the frontier of computation and advancing our drug discovery portfolio provides important synergies, and we are pleased to see innovative pharmaceutical companies like Novartis increase their depth of engagement with us through both expanded use of our technology and focused drug discovery collaborations,” stated Ramy Farid, Ph.D., chief executive officer of Schrödinger. “We are very pleased to enable the further integration of our platform across Novartis’s research teams to realize our shared vision for modernizing drug discovery through a computational “predict first” approach.”
“We are excited to build on our long-standing relationship with Schrödinger, leveraging their discovery platform and physics-based computational methods to accelerate our drug discovery efforts,” said Fiona Marshall, President of Biomedical Research at Novartis. “These agreements underscore our commitment to innovative computational technologies that enhance our research capabilities to help us bring new and impactful medicines forward faster.”
Research Collaboration Terms
As part of the multi-year, multi-target research collaboration and license agreement, Schrödinger and Novartis will combine their existing research efforts to identify and advance therapeutics for undisclosed targets in Novartis’s core therapeutic areas. The agreement is intended to advance multiple development candidates for development and commercialization by Novartis. Schrödinger and Novartis will share responsibility for the discovery of development candidates under the collaboration. Novartis will be responsible for clinical development, manufacturing and global commercialization.
Under the terms of the agreement, Novartis will pay Schrödinger
The agreement is subject to customary closing conditions including regulatory clearance. For more information regarding the financial and other terms of the collaboration, please refer to the Current Report on Form 8-K which will be filed by Schrödinger with the
Schrödinger Webcast and Conference Call Information
Schrödinger will discuss the collaboration during its third quarter financial results conference call and webcast on Tuesday, November 12, 2024, at 8:00 a.m. ET. The live webcast can be accessed under “Events & Presentations” in the investors section of Schrödinger’s website, https://ir.schrodinger.com/events-and-presentations/default.aspx. To participate in the live call, please register for the call here. It is recommended that participants register at least 15 minutes in advance of the call. Once registered, participants will receive the dial-in information. The archived webcast will be available on Schrödinger’s website for approximately 90 days following the event.
About Schrödinger
Schrödinger is transforming molecular discovery with its computational platform, which enables the discovery of novel, highly optimized molecules for drug development and materials design. Schrödinger’s software platform is built on more than 30 years of R&D investment and is licensed by biotechnology, pharmaceutical and industrial companies, and academic institutions around the world. Schrödinger also leverages the platform to advance a portfolio of collaborative and proprietary programs and is advancing three clinical-stage oncology programs. Founded in 1990, Schrödinger has approximately 900 employees operating from 15 locations globally. To learn more, visit www.schrodinger.com, follow us on LinkedIn and Instagram, or visit our blog, Extrapolations.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 including, but not limited to those regarding our expectations about the speed and capacity of our computational platform, our ability to discover, identify and advance development candidates under the collaboration, the potential of our collaboration with Novartis to develop new therapies, our ability to realize potential milestones, royalties or other payments under the collaboration and the risk that we may not realize the expected benefits of the collaboration. Statements including words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "project," "should," "target," "will," "would" and statements in the future tense are forward-looking statements. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies, and prospects, which are based on the information currently available to us and on assumptions we have made. Actual results may differ materially from those described in these forward-looking statements and are subject to a variety of assumptions, uncertainties, risks and factors that are beyond our control, including our reliance upon third-party providers of cloud-based infrastructure to host our software solutions, our reliance on third party contract research organizations to assist in the discovery of development candidates, our reliance on Novartis to perform its obligations to develop and commercialize any development candidates discovered by us under the collaboration, the uncertainties inherent in drug development and commercialization, uncertainties associated with the regulatory review of clinical trials and applications for marketing approvals, as well as the other risks and uncertainties identified under the caption "Risk Factors" and elsewhere in our Securities and Exchange Commission filings and reports, including our most recent Quarterly Report on Form 10-Q, as well as future filings and reports by us. Any forward-looking statements contained in this press release speak only as of the date hereof. Except as required by law, we undertake no duty or obligation to update any forward-looking statements contained in this press release as a result of new information, future events, changes in expectations or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241112425300/en/
Jaren Madden (Investors)
jaren.madden@schrodinger.com
617-286-6264
Matthew Luchini (Investors)
matthew.luchini@schrodinger.com
917-719-0636
Allie Nicodemo (Media)
allie.nicodemo@schrodinger.com
617-356-2325
Source: Schrödinger
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