Recursion(RXRX) - 2025 Q1 - Quarterly Report

Clinical Programs and Collaborations - Recursion Pharmaceuticals has over 5 high potential clinical and pre-clinical programs across oncology and rare disease indications, with partnerships generating $130 million in cash inflows to date[126][134] - In the Phase 2 study of REC-4881 for familial adenomatous polyposis, a preliminary median 43$7 million milestone payment, with potential for over $300 million in additional milestone payments[134] - The ongoing collaboration with Roche and Genentech has generated five phenomaps from over one trillion iPSC-derived cells, enhancing insights for potential programs[135] - REC-7735, targeting PI3Kα H1047R mutant breast cancer, is expected to have a development candidate nominated in the second half of 2025[133][138] - REC-617 and REC-1245 are in ongoing Phase 1/2 studies, with additional data expected in 2025[138] Financial Performance - The company reported a net loss of$202.5 million for the three months ended March 31, 2025, compared to a net loss of $91.4 million for the same period in 2024, representing an increase of over 100$14.745 million, a 7% increase from $13.794 million in the prior year[3] - Operating revenue increased by 10$14.818 million, driven by strategic partnerships with Sanofi and Merck[4] - Research and development expenses rose by 92% to $129.634 million, primarily due to costs associated with the acquisition of Exscientia and increased personnel costs[5] - General and administrative expenses increased by 74$54.650 million, influenced by the inclusion of Exscientia's results and higher salaries[6] - Cash used in operating activities for the three months ended March 31, 2025, was $131.957 million, up from$102.300 million in the prior year[8] - The company incurred a total cost of revenue of $21.829 million, a 96$11.166 million in the previous year[9] - The accumulated deficit as of March 31, 2025, was $1.6 billion, reflecting significant operating losses since inception[10] Cash Position and Future Financing - As of March 31, 2025, the company had cash and cash equivalents of$500.5 million, sufficient to fund operations for at least the next twelve months[1] - The company anticipates needing additional financing in the future to support operations and potential product commercialization[7] Strategic Focus - The company plans to focus on high-value programs in oncology and rare diseases while discontinuing less promising clinical programs[133] - The integration of Tempus data and HealthVerity's de-identified data aims to enhance clinical trial design and operational workflows[139] - The Recursion OS utilizes approximately 65 petabytes of proprietary data to enhance drug discovery processes[125]