This Artificial Intelligence Biotech Stock Is Crushing the Market, but Is It a Buy?
Schrödinger (NASDAQ: SDGR) stock is going bonkers, gaining 191% this year so far thanks to snappy top-line growth and the hype surrounding artificial intelligence (AI), which it uses in its software platform for discovering leads for biopharma drug development. With no end to the AI hype train in sight, nor any sign of its sales slowing, its shares could easily climb even further, despite its significant cash burn rate.
But should you buy this stock today? There's more to this company than meets the eye, so let's answer that question by looking at its activities more closely.
Schrödinger makes money via three avenues: licensing its drug discovery software to third parties, collaborating directly with biopharma businesses to help them develop medicines, and, in theory, by producing new medicines developed in-house. In Q1, it brought in $32.2 million from its software licenses, and $32.6 million from its collaboration partners like Bristol-Myers Squibb.
Source Fool.com
