Financial Performance - Total revenue for Q1 2025 was $15 million, a 7% increase from $14 million in Q1 2024, primarily due to collaborative agreements with Sanofi, Roche, and Merck KGaA[15] - Total revenue for Q1 2025 was $14,745,000, a 6.9% increase from $13,794,000 in Q1 2024[21] - Operating revenue increased to $14,818,000 in Q1 2025 from $13,491,000 in Q1 2024, reflecting a growth of 9.8%[21] - Net loss for Q1 2025 was $202.5 million, compared to a net loss of $91.4 million in Q1 2024[15] - Net loss for Q1 2025 was $202,487,000, compared to a net loss of $91,373,000 in Q1 2024, representing an increase in loss of 121.5%[21] Research and Development - Research and development expenses rose to $130 million in Q1 2025, up 91% from $68 million in Q1 2024, driven by the agreement with Tempus and the business combination with Exscientia[15] - Research and development expenses surged to $129,634,000 in Q1 2025, up 91.9% from $67,560,000 in Q1 2024[21] - Preliminary data from the REC-4881 study showed a median 43% reduction in polyp burden in familial adenomatous polyposis patients[6] - The collaboration with Roche and Genentech has generated five phenomaps from over one trillion iPSC-derived cells, enhancing the company's AI/ML models[9] Cash and Assets - Cash and cash equivalents were $509 million as of March 31, 2025, down from $603 million at the end of 2024[15] - Total current assets decreased to $584,145,000 as of March 31, 2025, down from $714,269,000 at the end of 2024[23] - The expected cash burn for 2025 is projected to be equal to or less than $450 million, down from approximately $606 million in 2024[15] - Cash burn for Q1 2025 was reported at $118,000,000, a decrease from $606,000,000 in 2024[25] - The company has a projected cash runway into mid-2027 based on its current business plan[15] Equity and Liabilities - Total liabilities decreased to $371,287,000 as of March 31, 2025, compared to $413,816,000 at the end of 2024[23] - Stockholders' equity decreased to $933,947,000 as of March 31, 2025, down from $1,034,782,000 at the end of 2024[23] - The company reported a weighted-average share count of 402,771,972 for Q1 2025, an increase from 236,019,349 in Q1 2024[21] Strategic Focus - Recursion is focusing on a streamlined portfolio of 5+ clinical and preclinical programs in oncology and rare diseases, deprioritizing 3 clinical and 1 preclinical program[5] - The company is focused on leveraging technology-driven approaches to enhance drug discovery and aims to deliver effective therapies in high-need areas[26] - The company achieved a $7 million milestone payment from its collaboration with Sanofi, with potential for over $300 million in additional milestone payments[8]

Core Insights - Recursion reported business updates and financial results for Q1 2025, emphasizing its commitment to advancing medicines in high unmet need areas through a streamlined portfolio strategy [1][3][5] Business Highlights - The company is focusing on high-potential programs to accelerate treatments, leveraging its integrated Recursion OS platform [3][5] - Recursion has deprioritized three clinical programs and one preclinical program after a strategic review, aiming to concentrate resources on programs with the strongest scientific rationale [5][9] - The pipeline includes several candidates in various stages, with REC-4881 showing promising preliminary data in familial adenomatous polyposis [6][8] Financial Results - Total revenue for Q1 2025 was $15 million, a slight increase from $14 million in Q1 2024, primarily due to collaboration agreements [16] - Research and development expenses rose to $130 million in Q1 2025 from $68 million in Q1 2024, driven by agreements with Tempus and the business combination with Exscientia [16] - The net loss for Q1 2025 was $203 million, compared to a net loss of $91.4 million in Q1 2024 [21] Cash Position - As of March 31, 2025, cash and cash equivalents were $509 million, down from $603 million at the end of 2024 [16][24] - The company expects a cash burn of up to $450 million for 2025, with a projected cash runway extending into mid-2027 [21][12] Partnerships and Collaborations - Recursion achieved a milestone in its collaboration with Sanofi, generating $7 million, with potential for over $300 million in additional milestone payments [9] - The partnership with Roche and Genentech continues to yield novel biological insights, with significant data generated from over one trillion iPSC-derived cells [10] Pipeline Updates - The company is advancing a focused set of clinical and preclinical programs in oncology and rare diseases, with several candidates expected to progress through various phases in the coming years [5][8][14] - REC-7735 is targeting PI3Kα H1047R mutant breast cancer, with candidate profiling ongoing and a development candidate expected in 2H25 [8][14]

Group 1 - The core viewpoint is that artificial intelligence (AI) is not a passing trend but is increasingly integrated into various sectors, including healthcare [2] - AI is making significant advancements in healthcare, indicating its growing importance in the industry [2] - The investing group Compounding Healthcare focuses on innovative companies in biotech and life sciences, particularly those developing breakthrough therapies and pharmaceuticals [2] Group 2 - The article emphasizes the potential of AI to transform healthcare, suggesting that it will play a crucial role in future developments [2] - The leader of the investing group has a background in the medical field, which informs their investment strategy in healthcare [2]

Core Insights - Recursion announced preliminary safety and efficacy results from its Phase 1b/2 TUPELO trial of REC-4881, an investigational MEK1/2 inhibitor for Familial Adenomatous Polyposis (FAP) [1][5] Company Overview - Recursion is a clinical-stage TechBio company focused on decoding biology to improve lives, utilizing its Recursion OS platform to analyze biological and chemical datasets [23] - The company has received Fast Track and Orphan Drug designations from the U.S. FDA for REC-4881, which is aimed at treating FAP, a rare inherited disorder [2] Clinical Trial Details - The TUPELO trial is evaluating the safety, tolerability, pharmacokinetics, and preliminary efficacy of REC-4881 in patients with FAP [6][8] - The Phase 1b portion was a randomized, double-blind, placebo-controlled safety run-in, while the ongoing Phase 2 portion is open-label [7][8] Efficacy Results - As of March 17, 2025, REC-4881 treatment led to a preliminary median 43% reduction in polyp burden at Week 13 among six efficacy-evaluable patients [3][10] - Five out of six patients (83%) experienced reductions in polyp burden ranging from 31% to 82%, while one patient showed a 595% increase from baseline [3][10] - Three of six patients (50%) achieved a ≥1-point reduction in Spigelman stage, indicating improvement in disease severity [11] Safety Profile - Among 19 safety-evaluable patients, 79% experienced at least one treatment-related adverse event (TRAE), with the majority being Grade 1 or 2 [4][16] - The most frequent TRAEs included acneiform rash, diarrhea, and decreased left ventricular ejection fraction (LVEF) [4][17] - Grade 3 TRAEs occurred in 16% of patients, with no Grade ≥4 events reported [4][18] Next Steps - Patient enrollment in the TUPELO trial is ongoing, with additional efficacy and safety analyses anticipated in the second half of 2025 [21]

Core Insights - Recursion will host a public earnings call on May 5, 2025, to provide business updates and report its Q1 2025 financial results [1][2] - The earnings call will be accessible via live stream on Recursion's social media platforms, allowing investors and the public to submit questions [2] - Recursion is a clinical stage TechBio company focused on decoding biology to improve lives, utilizing a platform that generates extensive biological and chemical datasets [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 [4] - The company operates multiple offices in major cities including Toronto, Montréal, New York, London, Oxford, and the San Francisco Bay area [4] - Recursion employs advanced machine-learning algorithms to analyze its vast datasets, conducting millions of wet lab experiments weekly and operating one of the world's most powerful supercomputers [3]

Core Insights - Recursion is set to present preliminary data from its Phase 1b/2 clinical trial, TUPELO, evaluating the safety and preliminary activity of REC-4881 for treating familial adenomatous polyposis (FAP) at the 2025 Digestive Disease Week meeting [1][2] - FAP is a rare hereditary condition affecting approximately 50,000 individuals across the US and Europe, with no FDA-approved therapies currently available [2][4] - REC-4881 is a non-ATP-competitive allosteric small molecule MEK 1/2 inhibitor identified through Recursion's AI-powered platform [3][4] Clinical Trial Details - The TUPELO trial is a multicenter, open-label study assessing REC-4881's efficacy, safety, and pharmacokinetics in patients with FAP post-colectomy/proctocolectomy [5] - As of February 7, 2025, 13 patients received 4 mg of REC-4881 daily, with 84.6% experiencing at least one treatment-related adverse event, primarily mild rashes [4] - Among 5 efficacy-evaluable patients, there was a greater than 30% median reduction in total polyp burden after 12 weeks of treatment [4] Upcoming Presentation - The presentation titled "Ongoing Phase 1b/2 Trial of the Allosteric MEK1/2 Inhibitor REC-4881 as Monotherapy in Familial Adenomatous Polyposis (FAP): Preliminary Safety and Efficacy Data" is scheduled for May 4, 2025, from 9:15 AM to 9:30 AM PDT [5] Company Overview - Recursion is a clinical stage TechBio company focused on decoding biology to improve lives, utilizing its Recursion OS platform to analyze vast biological and chemical datasets [7][8] - The company operates one of the most powerful supercomputers globally, enabling extensive experimental and computational capabilities [8] - Recursion is headquartered in Salt Lake City and has multiple offices across North America and Europe [9]

Artificial intelligence (AI) is taking over the world. Individuals and corporations are implementing the technology in their day-to-day lives and operations; governmental institutions are doing the same. The U.S. Food and Drug Administration (FDA) recently announced it would phase out animal testing in drug development in favor of other methods, including AI-based testing.That's good news for Recursion Pharmaceuticals (RXRX 3.67%), a biotech company that's already pioneering the use of AI in drug developmen ...

Core Insights - HealthVerity has partnered with Recursion to license real-world data (RWD) to enhance clinical trial design and analytics [1][2] - Recursion will integrate HealthVerity's de-identified data covering over 340 million lives in the US into its data science and machine learning platforms, aiming to improve insights into patient populations and streamline clinical operations [2][4] - The partnership emphasizes the transformative potential of RWD in optimizing clinical trials and accelerating the development of novel therapeutics [3][4] Company Overview - HealthVerity is a leader in privacy-protected RWD exchange, facilitating connections and analysis of disparate patient data for healthcare and life sciences organizations [6] - Recursion is a clinical stage TechBio company focused on decoding biology to improve lives, utilizing its Recursion OS platform to generate extensive biological and chemical datasets [7] Strategic Goals - The collaboration aims to industrialize clinical development, reduce costs, and enhance trial design through in silico simulations and a patient-centric approach [2][4] - Recursion's integration of HealthVerity's data will strengthen its ability to predict patient responses and refine study designs, ultimately improving clinical trial enrollment [3][4]

Recursion Pharmaceuticals (RXRX) shares soared 27.7% in the last trading session to close at $5.76. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 24.1% loss over the past four weeks.Earlier this month, the company announced that it has dosed the first patient in its early-stage study of investigational candidate, REC-3565, for treating relapsed or refractory (R/R) B-cell lymphomas. REC-3565 is a selective MALT1 inhibitor develo ...

Core Insights - Recursion Pharmaceuticals (RXRX) has initiated dosing for the first patient in its early-stage study of REC-3565, aimed at treating relapsed or refractory B-cell lymphomas, utilizing its AI-driven Recursion OS platform [1][2] - The unique mechanism of REC-3565 is anticipated to reduce the risk of drug-drug interactions and hyperbilirubinemia, potentially allowing for safer dose escalation and improved clinical efficacy [2] - RXRX's shares have decreased by 41.3% year-to-date, contrasting with a 14.6% decline in the industry [3] Pipeline Development - The Phase I EXCELERIZE study will evaluate the safety, tolerability, pharmacokinetics, pharmacodynamics, and preliminary efficacy of REC-3565, structured in two parts: monotherapy and combination therapy [5] - REC-3565 is positioned to address the limited treatment options available for relapsed or refractory B-cell lymphomas, with the potential to enhance patient outcomes [6] Other Pipeline Candidates - RXRX is also developing REC-994 for cerebral cavernous malformation (CCM), affecting approximately 360,000 symptomatic individuals in the US and EU, with a broader global impact potentially exceeding one million patients [7] - The company has met primary safety endpoints in mid-stage studies for REC-994 and plans to consult with the FDA for further development pathways [8] - Other mid-stage candidates include REC-2282 (neurofibromatosis type II), REC-4881 (familial adenomatous polyposis), REC-3964 (recurrent Clostridioides difficile infection), and REC-1245 (biomarker-enriched solid tumors and lymphoma) [9] Collaborations - RXRX has established collaboration agreements with major pharmaceutical companies such as Roche, Bayer, Merck, and Sanofi to develop candidates for various oncology indications [10]