PresentationNajat KhanChief R&D Officer, Chief Commercial Officer and Director Hi, everyone, and welcome. I'm Najat Khan, Recursion's Chief R&D and Chief Commercial Officer and incoming CEO and President. Let's jump right in. Today is an important moment for Recursion, for our teams and most importantly, for the FAP patient community. We are here to share updated safety and efficacy results from our ongoing Phase I/II TUPELO study evaluating REC-4881 in FAP. Before we begin, please note that today's presen ...

Recursion Pharmaceuticals (NasdaqGS:RXRX) Update Summary Company Overview - **Company**: Recursion Pharmaceuticals - **Focus**: Development of REC-4881 for Familial Adenomatous Polyposis (FAP) - **Key Personnel**: Najat Khan (Chief R&D and Commercial Officer, incoming CEO), Dr. Beth Bruckheimer (FAP clinical lead), Dr. David Mauro (Chief Medical Officer) Industry Context - **Disease**: Familial Adenomatous Polyposis (FAP) - **Patient Population**: Over 50,000 patients in the U.S. and EU5 affected by FAP - **Current Treatment Landscape**: No approved pharmacotherapies for FAP; patients undergo frequent surgeries and interventions Core Findings and Insights 1. **Unmet Need**: FAP is a progressive disease with no approved treatments, leading to severe interventions and surgeries, including the Whipple procedure [2][15][18] 2. **Mechanism of Action**: REC-4881 is a selective MEK1/2 inhibitor that targets the underlying biology of FAP by addressing the loss of APC gene function [3][20] 3. **Clinical Study Results**: - Phase 1b/2 TUPELO study shows that 75% of patients experienced a reduction in polyp burden by week 13, with a median reduction of 43% [25][31] - Durable effects observed, with 82% of patients maintaining a response at week 25, showing a median reduction of 53% [27][29][32] 4. **Safety Profile**: Consistent with MEK inhibitor class expectations; primarily grade 1-2 adverse events, with no grade 4-5 events reported [4][25][31] Additional Insights 1. **Real-World Evidence**: The ClinTECH platform analyzed over 1,000 FAP patients, revealing the relentless progression of polyp growth and the need for effective therapies [10][11][17] 2. **Regulatory Engagement**: Plans to engage with the FDA in the first half of 2026 to discuss a potential registrational pathway for REC-4881 [5][33] 3. **Partnerships and Financials**: Over $500 million generated from collaborations, indicating strong partnership momentum [7][8] Future Directions - **Expansion of Patient Population**: Broadening eligibility from patients over 55 to those over 18 years old [5][33] - **Dosing Optimization**: Exploring alternative dosing regimens to enhance the benefit-risk profile of REC-4881 [33] - **Long-term Goals**: Aim to provide a much-needed therapeutic option that can significantly improve the quality of life for FAP patients [15][33] Conclusion - REC-4881 represents a significant advancement in the treatment of FAP, with promising efficacy and safety data, addressing a critical unmet need in a patient population that currently lacks effective pharmacotherapy options [31][33]

Ongoing Phase 1b/2 Trial of the Allosteric MEK1/2 Inhibitor REC-4881 as Monotherapy in Familial Adenomatous Polyposis (FAP): Updated Safety and Efficacy December 8, 2025 Forward Looking Statements This presentation discusses an investigational product whose safety and efficacy have not been established. This document contains information that includes or is based upon "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995, including, without limitation, those regardi ...

Core Insights - Recursion Pharma announced that its experimental oral drug has shown effectiveness in reducing abnormal growths in the colon for patients with a rare genetic condition [1] Company Summary - Recursion Pharma utilizes artificial intelligence in the drug discovery process, focusing on identifying new drug candidates [1] - The company is actively engaged in developing treatments for rare diseases, highlighting its commitment to addressing unmet medical needs [1] Industry Summary - The use of artificial intelligence in pharmaceuticals is gaining traction, with companies like Recursion Pharma leading the way in innovative drug discovery methods [1] - The focus on rare genetic conditions reflects a broader trend in the industry towards personalized medicine and targeted therapies [1]

Core Insights - Recursion announced positive Phase 1b/2 data from the TUPELO trial for REC-4881, an investigational allosteric MEK1/2 inhibitor targeting familial adenomatous polyposis (FAP) [1][3] Efficacy and Results - REC-4881 demonstrated a 43% median reduction in polyp burden after 12 weeks of treatment, with 75% of evaluable patients showing reductions [4][16] - At Week 25, 82% of evaluable patients maintained reductions in polyp burden, with a 53% median decrease from baseline [4][17] - The treatment showed a significant improvement in Spigelman stage, with 40% of patients achieving a ≥1-point improvement [4][16] Safety Profile - The safety profile of REC-4881 was consistent with MEK1/2 inhibitors, with 94.7% of patients reporting at least one treatment-related adverse event, primarily Grade 1 or 2 [19][24] - Grade 3 treatment-related adverse events occurred in 15.8% of patients, with no Grade ≥4 events reported [19][24] Mechanism and Discovery - REC-4881 was identified through an AI-driven phenotypic screening approach, highlighting MEK1/2 inhibition as a therapeutic strategy for FAP [2][8] - The drug represents a precision-medicine approach targeting the causal biology of FAP, a disease with no approved medical therapies [5][6] Future Plans - The company plans to engage with the FDA in the first half of 2026 to define a potential registration pathway and expand the patient population eligibility from ≥55 to ≥18 years old [4][29]

Group 1 - Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) is a biotech company focused on using automation, data science, and AI to accelerate drug discovery for genetic, infectious, and cancer-related diseases [2] - The stock has experienced significant volatility, described as "horrendous" by market commentators, and is currently categorized as speculative [1][2] - The company has undergone an equity offering which negatively impacted its stock price, leading to its current status as a "meme stock" with unpredictable trading patterns [2] Group 2 - Despite the potential of RXRX, there are other AI stocks in the market that are perceived to offer greater upside potential and lower downside risk [2] - The stock has garnered attention from retail investors, leading to increased buying activity, particularly noted in the mornings [2]

Core Viewpoint - Recursion Pharmaceuticals reported a narrower loss in Q3 2025 compared to expectations, but revenues significantly declined year-over-year, raising concerns about future performance and estimates [3][4][9]. Financial Performance - The company reported a loss of 36 cents per share in Q3 2025, which was better than the Zacks Consensus Estimate of a loss of 38 cents, but worse than the loss of 34 cents per share in the same quarter last year [3]. - Total revenues for the quarter were $5.2 million, a significant decrease from the previous year, primarily due to the absence of a $30 million milestone payment recognized in the prior year [4]. - Research and development (R&D) expenses increased by 62% to $121.1 million, attributed to the acquisition of full rights to REC-102 and the business combination with Exscientia [6]. - General and administrative (G&A) expenses rose by 10% to $41.6 million, influenced by the inclusion of expenses from the Exscientia business combination [7]. - Cash, cash equivalents, and restricted cash totaled $667.1 million as of September 30, 2025, an increase from $533.8 million as of June 30, 2025, expected to sustain operations through the end of 2027 [8]. Market Reaction and Estimates - Following the earnings release, there has been a downward trend in estimates, with the consensus estimate shifting down by 17.54% [9]. - The stock currently holds a Zacks Rank 3 (Hold), indicating an expectation of an in-line return in the coming months [11][12]. Industry Comparison - Recursion Pharmaceuticals operates within the Zacks Medical - Biomedical and Genetics industry, where competitor Krystal Biotech, Inc. has seen an 11% gain over the past month, reporting revenues of $97.8 million and an EPS of $2.66, reflecting a year-over-year increase of 16.7% [13][14].

Core Viewpoint - Recursion Pharmaceuticals has faced significant challenges, including disappointing earnings results and a leadership transition, leading to mixed market reactions and technical indicators [2][3]. Financial Performance - For Q3, Recursion Pharmaceuticals reported a loss of $0.36 per share, worse than the expected loss of $0.31 per share [2]. - The company's quarterly sales were $5.175 million, falling short of the analyst consensus estimate of $16.983 million [2]. Leadership Changes - A CEO transition plan has been announced, with Najat Khan set to succeed co-founder Chris Gibson as CEO and President [3]. Stock Performance - Following the news, Recursion Pharmaceuticals shares increased by 5.6%, closing at $4.92 [3]. - The stock is currently trading 12.2% above its 20-day simple moving average (SMA), indicating short-term strength, but remains below its 50-day, 100-day, and 200-day SMAs, suggesting a bearish long-term trend [4]. Technical Indicators - The Relative Strength Index (RSI) is at 54.50, indicating neutral territory with no immediate overbought or oversold conditions [5]. - The Moving Average Convergence Divergence (MACD) is above its signal line, suggesting bullish momentum, but confirmation through price action is needed [6]. - There are currently no clear support or resistance levels, complicating price movement predictions [7]. Historical Context - The stock experienced a death cross in April, with the 50-day SMA falling below the 200-day SMA, indicating a bearish trend [8]. - Over the past 12 months, the stock has declined by 25.87%, reflecting ongoing challenges [8].

Core Viewpoint - Recursion Pharmaceuticals has faced significant challenges, including disappointing earnings results and a leadership transition, leading to mixed market reactions and technical indicators. Financial Performance - Recursion Pharmaceuticals reported a quarterly loss of 36 cents per share for Q3, which was worse than the market estimate of a loss of 31 cents per share [2] - The company’s quarterly sales were $5.175 million, significantly missing the analyst consensus estimate of $16.983 million [2] Leadership Changes - The company announced a CEO transition plan, with Najat Khan set to succeed co-founder Chris Gibson as CEO and President [3] Stock Performance - Recursion Pharmaceuticals shares increased by 5.6% to settle at $4.92 following the announcement of the CEO transition [3] - The stock is currently trading 12.2% above its 20-day SMA, indicating short-term strength, but is struggling below its 50-day, 100-day, and 200-day SMAs, suggesting a bearish long-term trend [4] Technical Indicators - The RSI is at 54.50, indicating neutral territory with no immediate overbought or oversold pressure [5] - The MACD is above its signal line, suggesting bullish momentum, but confirmation through price action is needed [6] - There are currently no clear support or resistance levels, complicating price movement predictions [7] Historical Trends - The stock experienced a death cross in April, with the 50-day SMA falling below the 200-day SMA, indicating a bearish trend [8] - Over the past 12 months, the stock has declined by 25.87%, reflecting ongoing challenges [8]

Core Insights - Recursion, a clinical stage TechBio company, will present new clinical data from the ongoing TUPELO Phase 1b/2 trial of REC-4881 for Familial Adenomatous Polyposis (FAP) during a webinar on December 8, 2025 [1][2] - The company utilizes a platform called Recursion OS, which integrates various technologies to create one of the largest proprietary biological and chemical datasets, enabling advanced drug discovery [3] Company Overview - Recursion is headquartered in Salt Lake City and is a founding member of BioHive, a collective for the Utah life sciences industry, with additional offices in Montréal, New York, London, and Oxford [4] - The company focuses on decoding biology to improve lives, leveraging machine-learning algorithms to analyze vast datasets and conduct millions of wet lab experiments weekly [3] Leadership and Presenters - The webinar will feature key personnel including Najat Khan, Ph.D. (Chief R&D and Chief Commercial Officer), David Mauro, M.D., Ph.D. (Chief Medical Officer), and other notable experts [6]