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Schrödinger to list on Nasdaq
Posted on Monday, 13 January 2020 12:39
Schrödinger, a life sciences company that develops software for computational chemistry, intends to hold an initial public offering (IPO) on Nasdaq to increase its capitalisation and financial flexibility.
The New York City-headquartered group has hired Morgan Stanley, BofA Securities, Jefferies and BMO Capital Markets as underwriters for the first-time share sale, which currently has a USD 100.00 million placeholder.
It noted one of the main reasons behind going public is to gain access to the capital market for future fundraisers.
However, proceeds from the listing would certainly support the advancement of its physics-based computational platform.
Money raised will also be funnelled into its internal drug discovery programmes and bankroll general corporate activities, including working capital, operating expenses and expenditures.
Schrödinger develops chemical simulation software for pharmaceutical and industrial companies, academic institutions, and government laboratories around the world.
The group noted the widespread adoption of its software has driven a steady increase in revenue and considering biopharmaceutical players are increasingly adopting its products at a larger scale, it anticipates this scaling-up will drive future top-line growth.
Schrödinger generated revenue of USD 55.69 million and USD 66.64 million in the 12 months ended 31st December 2017 and 2018, respectively, and USD 59.71 million for the nine months ended 30th September 2019.
The group incurred a net loss of USD 28.43 million in FY 2018 and of USD 17.80 million in Q1-3 2019.
Schrödinger’s prospectus comes just two days after the company and Bayer announced a five-year technology alliance to develop a comprehensive de novo design product with the objective of accelerating the discovery of innovative high-quality drugs.
Zephyr, the M&A database published by Bureau van Dijk, shows 166 IPOs targeting companies based in the US were announced between the beginning of 2019 and the present day.
Uber, Lyft, Crowdstrike and Dynatrace are among those that have completed a listing.
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