Schrödinger in drug development agreement with Bristol Myers worth up to $2.7 billion in milestone and royalty payments

Schrödinger Inc. shares
SDGR,
+3.46%
jumped about 8% in premarket trade Monday, after the company announced a drug discovery agreement with Bristol Myers Squibb Co.
BMY,
-0.77%
that could net it up to $2.7 billion in milestone payments and royalties. Schrödinger, which offers a physics-based software platform that can speed up drug development and lower costs, will receive $55 million upfront. The companies are aiming to advance small molecule therapeutics for targets in oncology, immunology and neurological disorders with Schrödinger responsible for discovery and development and Bristol Myers for manufacturing and sales. Schrödinger has agreed to grant Bristol Myers exclusive worldwide rights to develop and sell any successful drug candidates. Schrödinger shares have gained 24% in the month to date; the company went public in February. Bristol Myers shares were up 2.2% premarket, but have fallen 4% in the year through Friday, while the S&P 500
SPX,
-0.67%
has gained 11%.