Schrödinger, Inc. announced a research collaboration and license agreement with Novartis to advance multiple development candidates into Novartis's portfolio for further development. The companies also announced an expanded three-year software agreement that substantially increases Novartis's access to Schrodinger's computational predictive modeling technology and enterpriseformatics platform. This expanded access enables Novartis to deploy Schrodinger's full suite of drug discovery technologies at scale across its research sites.

Schrodinger will provide comprehensive support to ensure full integration and optimization of the platform, enabling Novartis to rapidly integrate computation at scale into its drug discovery programs. Research Collaboration Terms: As part of the multi-year, multi-target research collaboration and license agreement, Schrodinger and Novartis will combine their existing research efforts to identify and advance therapeutics for undisclosed targets in Novartis's core therapeutic areas. The agreement is intended to advance multiple development candidates for development and commercialization by Novartis. Schrodinger and Novemberartis will share responsibility for the discovery of development candidates under the collaboration.

Novartis will be responsible for clinical development, manufacturing and global commercialization. Under the terms of the agreement, Novartis will pay Schrodinger $150 million upfront, and Schrodinger will also be eligible to receive up to $892 million in research, development and regulatory milestone payments. Additionally, Schrodinger is eligible for up to $1.38 billion in commercial milestones and tiered mid single-digit to low double-digit royalties on net sales of each product commercialized by Novartis.

The agreement is subject to customary closing conditions including regulatory clearance.