Schrodinger stock plunges after discontinuing key leukemia drug

Published 14/08/2025, 14:16
© Reuters.

Investing.com -- Schrodinger Inc (NASDAQ:SDGR) stock plunged 13.7% after the company announced it is discontinuing the clinical development program for its CDC7 inhibitor SGR-2921, which was being evaluated in a Phase 1 study for leukemia patients.

The decision to halt development came after two treatment-related deaths occurred in the Phase 1 dose-escalation study involving patients with relapsed/refractory acute myeloid leukemia (AML) or high-risk myelodysplastic syndromes. Despite observing early evidence of monotherapy activity, the company determined that pursuing development as a combination therapy would be difficult given the safety profile.

"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, M.D., chief medical officer at Schrödinger.

The company had been hopeful about advancing the drug for AML treatment, as the disease has high relapse rates, progresses rapidly, and has limited available therapies. The Phase 1 study was supported by preclinical data that had shown CDC7 inhibition resulted in anti-leukemic responses in patient-derived AML models.

Schrödinger expressed disappointment with the outcome, particularly given the early clinical activity observed in the trial, but maintained that discontinuing the program was the appropriate decision for patient safety.

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