Recursion Reports First Quarter 2025 Financial Results and Provides Business Update

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]