rewrite this title Schrödinger Stock – A Dead Cat Bounce? – Nanalyze

The drug development process is broken. On average, it takes 10-15 years and $2 billion to bring a drug to market, and nearly 90% of candidates fail along the way. Enter AI, a technology that’s mastered the most sophisticated games we have. It can even predict how proteins fold, and that’s before it became mainstream. It makes sense that we should use AI to bring drugs to market quicker and at a lower cost. So why is it that AI drug discovery companies have largely failed to capture all these grand aspirations?

We’ve been closely following a number of AI drug discovery companies, one being Schrödinger $SDGR. Today we’re going to revisit past concerns to see if things are finally looking up for a company that should be making hay while the sun shines.

A Dead Cat Bounce?

We invest in companies, not stocks, but it’s hard not to notice just how dreadfully Schrödinger’s stock has performed over the past five years, having lost 88% of its value. The result is that they’re now in the “death zone” with a market cap just under $1 billion. While the stock price reacted positively to their recent earnings report and promises of stronger-than-expected growth, that may just be a dead (Schrödinger’s) cat bounce. Their business, while growing, is on a trajectory that seems problematic, and the stock price reflects that.