Schrödinger sells computational software to biopharmaceutical and materials science companies to accelerate the discovery of new molecules. Its core platform uses physics-based simulation to predict molecular properties — such as binding affinity, solubility, and bioavailability — before molecules are physically synthesized, allowing drug discovery teams to identify and optimize candidates faster and cheaper than traditional lab methods. The platform's flagship product is FEP+, which predicts how strongly a molecule binds to a target protein with lab-level accuracy but in hours rather than weeks. Other key products include Glide, LiveDesign, WaterMap, and AutoDesigner. Schrödinger sells annual software licenses to customers including all top 20 global pharma companies and over 1,750 academic institutions. Software gross margins are in the mid-to-high 70s, and growth comes primarily from deepening adoption within existing large pharma accounts rather than adding new customers. In addition to software, Schrödinger runs a drug discovery business where it applies its own platform to discover novel drug candidates, either through internal programs or collaborations with biopharma partners. These deals typically include upfront payments, development milestones, and royalties on commercial sales. Schrödinger has shifted its drug discovery strategy toward early-stage partnering to reduce cash burn while preserving milestone and royalty economics. A newer growth vector is predictive toxicology, with a commercial launch expected in 2026, and Schrödinger is also expanding its platform into materials science applications including batteries, semiconductors, and polymers.