Schrödinger, the physics-based computational platform company, experienced a significant drop in its stock prices as shares fell by 22% to $39.37. This decline can be attributed to the company's declining revenue in the latest quarter and its revised outlook for 2023.
Despite a remarkable 111% increase in stock prices throughout the year, this recent decrease marks the largest percentage decline Schrödinger has seen since March 2021, when it fell by 27%.
During the second quarter ended on June 30, Schrödinger reported a revenue of $35.2 million, which is down from $38.5 million compared to the previous year. The primary factor contributing to this decline is a decrease in drug discovery revenue.
Looking ahead, Schrödinger has revised its drug discovery revenue range for 2023. The new forecast now ranges between $50 million and $70 million, as opposed to the previous projection of $70 million to $90 million. This adjustment reflects the company's updated expectations for collaboration milestones and the completion of new business development activities.
Despite these challenges, Chief Executive Ramy Farid remains optimistic about Schrödinger's outlook for the remainder of the year.