Schrödinger discontinues leukemia drug after patient deaths

Published 14/08/2025, 12:06
Schrödinger discontinues leukemia drug after patient deaths

NEW YORK - Schrödinger, Inc. (NASDAQ:SDGR), a $1.46 billion market cap biotech company with a strong balance sheet showing more cash than debt, announced Thursday it has discontinued the clinical development program for SGR-2921, its CDC7 inhibitor being evaluated for treatment of relapsed/refractory acute myeloid leukemia and high-risk myelodysplastic syndromes. According to InvestingPro data, the company maintains healthy liquidity with a current ratio of 3.3.

The company terminated the Phase 1 dose-escalation study after determining the drug contributed to two deaths in patients with acute myeloid leukemia (AML), according to a press release statement. This development comes as analysts maintain a bullish stance on the company, with price targets ranging from $26 to $35 per share, as reported by InvestingPro.

"Patient safety is our first priority, and in light of two treatment-related deaths in the Phase 1 dose-escalation study, we have made the decision to discontinue further development of SGR-2921," said Margaret Dugan, Chief Medical Officer at Schrödinger.

The decision comes despite early evidence of monotherapy activity observed in the clinical trial. The company indicated that based on the drug’s profile, pursuing development as a combination therapy would be difficult.

The Phase 1 study had been supported by preclinical data showing CDC7 inhibition resulted in anti-leukemic responses in patient-derived AML models, suggesting potential use alongside standard treatments.

Schrödinger, founded in 1990, develops computational platforms for molecular discovery in drug development and materials design. The company employs approximately 800 people across 15 global locations and has demonstrated strong revenue growth of 18.59% over the last twelve months. For deeper insights into Schrödinger’s financial health and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, available for over 1,400 US stocks.

In other recent news, Schrodinger Inc. reported its second-quarter earnings for 2025, which exceeded analysts’ expectations. The company posted a net loss of $0.65 per share, better than the anticipated $0.80 loss, resulting in an 18.75% positive surprise. Additionally, Schrodinger’s revenue reached $54.8 million, surpassing the forecasted $52.02 million by 5.34%. Despite these strong financial results, the company’s stock experienced a slight decline in after-hours trading. In another development, Barclays initiated coverage on Schrodinger with an Overweight rating and set a price target of $25.00. The research firm highlighted two potential catalysts expected in the fourth quarter of 2025 that could drive share appreciation. These recent developments are crucial for investors to consider when evaluating Schrodinger’s future prospects.

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