Citron Updates Schrodinger ($SDGR)

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2020 Target Price – $80

Last week, Citron Research issued an opinion on $SDGR calling it the most important IPO of the last 5 years.  We purposely did not use the words “Corona Virus” in the report in order to eschew from the report being considered opportunist or promotional.  But the obvious has to be addressed…

No one has spent their life and fortune more dedicated to the eradication of disease and possible pandemics than Bill Gates.  Mr. Gates has repeatedly stated that the need to find fast cures is essential.

https://www.cnbc.com/2020/01/27/bill-gates-in-2018-world-needs-to-prepare-for-pandemics-just-like-war.html

Mr. Gates is a key investor in $SDGR and has publicly stated:

“Schrödinger has demonstrated that precise molecular design can significantly accelerate drug discovery and lead to unexpected solutions that stand to benefit patients. We’re pleased to support this exciting stage in Schrödinger’s growth,” said Bill Gates, who has led three previous investments in Schrödinger since 2010.

https://www.businesswire.com/news/home/20190104005471/en/Schr%C3%B6dinger-Closes-85-Million-Financing-Advance-Computational

 

Citron does not know who is going to deliver the vaccine to market, but whoever it is there is a good chance they use the $SDGR platform as ALL the top 20 pharma companies in the world already do.

It must be noted that the $SDGR story goes beyond borders as one of their key investors and collaborators is Chinese pharma giant WuXi AppTec who is the largest Chinese CRO that many US biotech firms rely on for drug-discovery services.

https://cen.acs.org/pharmaceuticals/Biotech-firms-consider-contingency-as-the-coronavirus-outbreak-hits-CROs/98/i7

As investors, we are amazed that the media is giving attention to stay at home exercise bikes when the real story here is how this innovative computational platform with artificial intelligence will be instrumental in the quick delivery of drugs not just for our current crisis but also for any future pandemics.

Cautious Investing to All

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