Group 1 - The session features Recursion with Co-Founder and CEO Chris Gibson, along with Chief R&D Officer and Chief Commercial Officer Najat Khan [2]

Question-and-Answer SessionSo maybe talk about the business from the perspective of the technology platform, the clinical pipeline and maybe just the overall strategy and business model to get us started?Ben TaylorCFO & President of Recursion UK Sure. Yes, a couple of important points there. So Recursion has been around for about 13 years, and the underlying mission of the company has, throughout that period, been to look at why drugs fail and try and find a better way to create a predictive model around th ...

Core View - Nvidia's portfolio stocks experienced a significant decline, indicating potential market volatility and investor sentiment shifts [1] Group 1: Stock Performance - CoreWeave (CRWV.US) dropped over 9% [1] - Arm Holdings (ARM.US) fell more than 4% [1] - Applied Digital Corporation (APLD.US) decreased by over 4% [1] - Nebius (NBIS.US) declined more than 5% [1] - Recursion Pharmaceuticals (RXRX.US) saw a drop of over 2% [1]

Core View - Nvidia's portfolio stocks experienced a significant decline, with CoreWeave dropping over 9% and Arm Holdings falling more than 4% [1] Company Performance - CoreWeave (CRWV.US) saw a decline of over 9% [1] - Arm Holdings (ARM.US) decreased by more than 4% [1] - Applied Digital Corporation (APLD.US) fell by over 4% [1] - Nebius (NBIS.US) dropped more than 5% [1] - Recursion Pharmaceuticals (RXRX.US) experienced a decline of over 2% [1]

Core Insights - The artificial intelligence (AI) revolution is significantly impacting various industries, with healthcare being one of the sectors that is beginning to adopt AI technologies [1][2][3] Group 1: AI in Healthcare - Despite the slow adoption of AI in healthcare, there are promising opportunities for investors as companies begin to commercialize AI solutions [3] - Recursion Pharmaceuticals has developed Recursion OS, a platform that utilizes 36 petabytes of biological and chemical data to virtually test drug potentials at a fraction of the cost of traditional clinical trials [7][9] - Tempus AI offers practical AI solutions for caregivers, helping with disease diagnosis, clinical trial suggestions, and treatment efficacy predictions, which enhances patient outcomes [15][16] Group 2: Company Performance - Recursion Pharmaceuticals reported a revenue of just under $34 million in the first half of the year, with a net loss of $374 million, but analysts expect revenue to triple by 2027 while halving losses [11][12] - Tempus AI generated $693 million in revenue last year, reflecting a 30% year-over-year growth, and is projected to become profitable by fiscal 2027 as it continues to grow [14][18]

Core Points - Recursion Pharmaceuticals (RXRX) has seen its stock value decrease by more than 17% week-to-date as of Thursday night, primarily due to an analyst price target cut and insider stock sales [1][2][4] - Morgan Stanley analyst Sean Laaman reduced the price target for Recursion from $5.00 to $4.80 while maintaining an equal-weight recommendation [2] - Several executives, including CEO Christopher Gibson and Chief R&D Officer Najit Khan, sold significant amounts of stock, with Gibson selling 40,390 shares and Khan selling 40,388 shares, primarily to meet tax obligations related to restricted stock units [5][6] Summary by Categories Analyst Actions - Morgan Stanley's Sean Laaman cut the price target for Recursion Pharmaceuticals by $0.20 to $4.80, while keeping an equal-weight recommendation [2] Insider Trading - CEO Christopher Gibson and Chief R&D Officer Najit Khan sold 40,390 and 40,388 shares respectively, with the sales primarily for tax withholding purposes related to restricted stock units [5] Market Reaction - The stock's decline of over 17% reflects the volatility typical in biotech stocks, where even minor negative news can significantly impact share prices [1][6]

Group 1 - Nvidia-related stocks experienced a decline on Tuesday, with NEBIUS (NBIS.US) and CoreWeave (CRWV.US) dropping over 6% [1] - Recursion Pharmaceuticals (RXRX.US) fell more than 5%, while Applied Digital (APLD.US) decreased nearly 5% [1] - Arm Holdings (ARM.US) saw a decline of over 3% [1]

Group 1 - Nvidia-related stocks experienced a decline on Tuesday, with NEBIUS (NBIS.US) and CoreWeave (CRWV.US) dropping over 6% [1] - Recursion Pharmaceuticals (RXRX.US) fell more than 5%, while Applied Digital (APLD.US) decreased nearly 5% [1] - Arm Holdings (ARM.US) saw a decline of over 3% [1]

Second quarter: revenue rose, but net loss deepened For its second quarter, Recursion earned $19.2 million in revenue, which was up from the slightly more than $14.4 million in the same period of 2024. However, the clinical-stage biotech company's generally accepted accounting principles (GAAP) net loss deepened considerably, coming in at almost $172 million ($0.41) against the $97.5 million deficit in the year-ago period. It's common for clinical-stage biotech companies to post net losses, but the market w ...

Financial Data and Key Metrics Changes - The company ended the quarter with a strong cash balance of $533 million, reflecting effective expense management and cash inflows from partnerships and tax credits [43][44]. - The expected cash burn for 2026 is projected to be 35% less than previous estimates, demonstrating a commitment to operational efficiency [44]. Business Line Data and Key Metrics Changes - The company is advancing a pipeline of internal programs in oncology and rare diseases, alongside collaborations with partners like Roche, Sanofi, Bayer, and Merck KGA [8][12]. - The ClinTech platform is being deployed across all programs, enhancing patient stratification and trial execution, with potential for 50% faster enrollment at high-quality sites [6][7]. Market Data and Key Metrics Changes - The company is leveraging proprietary datasets and AI to enhance drug discovery and clinical trial design, which is expected to improve the quality and speed of bringing medicines to market [9][12]. - The partnership with Sanofi has achieved multiple milestones, indicating strong collaboration in challenging therapeutic areas [40][68]. Company Strategy and Development Direction - The company is focused on building a comprehensive drug discovery platform, integrating various data layers to enhance the probability of success in drug development [47][81]. - The Recursion OS 2.0 platform aims to bring unique biological insights and new targets to the clinic, emphasizing high-quality programs that address unmet medical needs [47][48]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting a catalyst-packed calendar with multiple readouts expected in the coming quarters [48]. - The company is committed to maintaining high standards of quality while advancing its innovative platforms and partnerships [46][47]. Other Important Information - The company has made significant advancements in AI-driven drug design and patient connectivity, which are expected to enhance the efficiency of clinical trials [17][19]. - The integration of the ClinTech platform is anticipated to streamline operations and improve patient outcomes in clinical trials [6][7]. Q&A Session Summary Question: Is Bolts 2 the initiative with a major partner on foundational protein structure modeling? - Yes, Bolts 2 is the partnership mentioned earlier, aimed at enhancing protein structure modeling [49]. Question: Why open source versus keeping it internal? - The company believes in commoditizing certain technologies to foster collaboration while retaining proprietary tools that provide a competitive advantage [50]. Question: What standard of care is allowed in the CDK7 combo expansion cohort in ovarian cancer? - The standard of care will include single-agent chemotherapy plus Bevacizumab, with median progression-free survival (PFS) around 6.7 months [53]. Question: Will multiomic profiling dictate patient enrollment in future studies for RBM 39? - Yes, the multiomic approach will help identify relevant patient populations for enrollment based on biological insights [56][58]. Question: What is the differentiation of RBM 39 compared to other CDK targeting assets? - RBM 39 is not a kinase and offers selectivity advantages over similar targets like CDK 12 and CDK 13, which have challenges in selectivity [62][63]. Question: What is the threshold for success in the upcoming FAP data readout? - The company is looking for meaningful improvement in polyp burden reduction compared to existing off-label therapies [65]. Question: Can you provide details on the $7 million milestone achieved under the Sanofi collaboration? - The milestone was achieved for a challenging target in the immunology space, reflecting progress in the partnership [68].