Schrödinger, Inc. announced a strategic partnership with Eli Lilly and Company to embed Lilly’s TuneLab AI drug‑discovery platform into its LiveDesign enterprise informatics suite. The integration will allow Schrödinger’s customers to run TuneLab workflows directly within LiveDesign, creating a unified interface for AI‑driven molecule design and simulation.
The deal expands Schrödinger’s software moat by adding a leading AI platform from a top‑tier pharmaceutical partner. TuneLab, launched in September 2025, is built on Lilly’s extensive research data and uses federated learning to protect proprietary data while continuously improving its models. By offering TuneLab inside LiveDesign, Schrödinger can deepen its relationships with existing customers and open new upsell opportunities in its high‑margin software segment.
Schrödinger’s software business has been the primary driver of revenue growth. In Q3 2025, total revenue rose 54% year‑over‑year to $54.3 million, with software revenue up 28% to $40.9 million. The partnership is expected to accelerate that trend by attracting more enterprise contracts that leverage AI and physics‑based calculations, thereby reinforcing the company’s focus on recurring software revenue.
Management highlighted the strategic fit in a statement. Pat Lorton, CTO and COO of Software, said the collaboration “demonstrates the demand for a unified enterprise informatics solution that democratizes access to AI models, physics‑based calculations, and experimental data.” Karen Akinsanya, President of R&D, Therapeutics, and Chief Strategy Officer, added that the partnership “expands the use of digital drug‑design methods and ultimately drives greater impact for patients.”
The announcement was well received by the market. In pre‑market trading on January 9, Schrödinger’s shares rose 1.99% to $18.98, reflecting investor confidence in the expanded software offering. Analysts noted that the partnership aligns with the company’s pivot toward a partnership and licensing model for its therapeutics portfolio, a shift announced in late 2025 that aimed to de‑risk the pipeline and focus on high‑return verticals.
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