Cadence launches AI-enabled drug discovery tool ROCS X

BOSTON - Cadence Molecular Sciences (OpenEye), a business unit of Cadence (NASDAQ:CDNS), a $97.27 billion market cap technology company with an "GREAT" InvestingPro financial health rating, announced the launch of ROCS X, an AI-enabled virtual screening solution that allows scientists to conduct 3D searches of trillions of drug-like molecules.

The technology was developed and validated through collaboration with Treeline Biosciences, which has physically sourced over 150 novel compounds for evaluation as potential drug candidates. Cadence’s impressive 85.57% gross profit margin and 22.29% revenue growth over the last twelve months demonstrate its strong position in the technology sector.

ROCS X builds on the Cadence Orion Molecular Design Platform, combining OpenEye OMEGA conformer generation and ROCS virtual screening software with AI-enabled 3D search capabilities. According to the company, this delivers reliable and efficient shape and electrostatic overlays from trillions of molecules.

"Using Cadence ROCS X, scientists at Treeline can now search trillions of drug-like molecules—an achievement that was unimaginable just a few years ago," said Eric Manas, senior vice president of Medicine Design at Treeline Biosciences.

In validation testing, ROCS X was compared to traditional FastROCS enumerated search and found 97% identical molecules from a set of 1,000, while enabling searches of much larger molecular databases.

Geoff Skillman, vice president of Research & Development at Cadence Molecular Sciences, stated that searching larger chemical spaces yields more diverse compounds and unique scaffolds, potentially accelerating drug discovery.

Early access to ROCS X is available now, with general availability expected in the first quarter of 2026, according to the press release statement. With 14 analysts recently revising their earnings estimates upward and the stock trading near its 52-week high, market sentiment appears strong. For deeper insights into Cadence’s financial outlook and comprehensive analysis, access the full Pro Research Report available on InvestingPro, which covers this and 1,400+ other top US stocks.

In other recent news, Cadence Design Systems has announced its acquisition of the Arm Artisan foundation IP business, enhancing its design IP portfolio to include standard cell libraries, memory compilers, and general-purpose I/Os. This move is expected to strengthen its presence in system-on-chip designs. In another significant development, Cadence has entered into a definitive agreement to acquire Hexagon AB’s Design & Engineering business for approximately €2.7 billion. The transaction, which involves a mix of cash and Cadence common stock, is anticipated to close in the first quarter of 2026, pending regulatory approvals.

Cadence has also unveiled a new Dynamic Power Analysis App for its Palladium Z3 Enterprise Emulation Platform, created in collaboration with NVIDIA. This tool aims to provide hardware-accelerated dynamic power analysis for AI designs. Furthermore, Cadence has expanded its partnership with TSMC to support advanced process nodes such as N3, N2, and A16 technologies, offering AI design flows for chip and 3D-IC.

Additionally, Stifel has maintained its Buy rating on Cadence Design Systems, reaffirming a price target of $395.00. This follows a discussion with a company executive emphasizing Cadence’s role in AI-first silicon and system design. These recent developments highlight Cadence’s strategic moves in acquisitions, partnerships, and technological advancements.

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