Recursion Pharmaceuticals Conference Summary Company Overview - **Company**: Recursion Pharmaceuticals (NasdaqGS: RXRX) - **Event**: Jefferies London Healthcare Conference - **Date**: November 18, 2025 Key Points Leadership Transition - Najat Khan has taken over as CEO, with Chris Gibson remaining as Chair of the Board, indicating a smooth leadership transition and continuity in strategic direction [5][8] Strategic Focus Areas 1. **AI-Driven Therapeutics**: The company aims to leverage its integrated AI technology stack to develop differentiated therapeutics, emphasizing the importance of proprietary data generation [6][12] 2. **Operational Discipline**: Recursion has reduced operating costs by 35% while maintaining external catalysts, showcasing a commitment to financial discipline [7] 3. **Talent Acquisition**: The company highlights the importance of having a bilingual team that understands both AI and biology to drive innovation [7][20] Unique Platform and Data Strategy - Recursion differentiates itself by building proprietary datasets, with 65 petabytes of data, 40 petabytes of which are proprietary, allowing for unique AI model development [14][12] - The company has generated over $500 million from partnerships, indicating strong revenue generation for a pre-commercial biotech firm [13] Regulatory Engagement - Recursion is actively engaged with regulatory bodies in the U.S. and EU, particularly in the rare disease and oncology spaces, to navigate evolving guidelines and frameworks [22][23] - The company is focusing on reducing reliance on animal testing through predictive models and organoid approaches [24] Pipeline Highlights 1. **Familial Adenomatous Polyposis (FAP)**: - The company is developing a treatment for FAP, a rare disease affecting approximately 50,000 patients in the U.S. and EU, with promising early data showing a 30-80% reduction in polyps [27][28] - The treatment aims to provide an alternative to colectomy, significantly impacting patient quality of life [27] - Upcoming data expected next month will provide further insights into efficacy and safety [30] 2. **CDK7 and RBM39 Programs**: - The CDK7 program is in monotherapy dose escalation, with early activity observed and a focus on combination therapies in ovarian cancer [41][43] - The RBM39 program is a first-in-class degrader targeting DDR modulation, with early safety and pharmacokinetic data expected in the first half of next year [46] Market Considerations - The company is aware of safety signals related to LVEF depression and rash, common with MEK1/2 inhibitors, and is managing these through established protocols [34] - The potential pivotal program for FAP will likely involve composite endpoints, including polyp burden reduction and progression to surgery [38] Future Outlook - Recursion anticipates a busy 2026 with multiple catalysts and milestones across its pipeline and partnerships, indicating a strong growth trajectory [50] Additional Insights - The company emphasizes the importance of data provenance and model interpretability in regulatory discussions, which is critical for building trust with regulators [20][24] - Recursion's commitment to innovative approaches in drug discovery and development positions it well within the rapidly evolving biotech landscape [19][12]

Core Insights - Iambic Therapeutics has successfully completed an oversubscribed financing round exceeding $100 million, aimed at accelerating clinical development of multiple AI-driven therapeutic pipelines and seeking further commercial collaborations [3][5]. Financing Highlights - The financing attracted a prestigious lineup of investors, including Abingworth, Illumina Ventures, Regeneron Ventures, Sequoia, and Qatar Investment Authority, indicating strong confidence in Iambic's unique technology platform and R&D strategy [5]. Technical Developments - Iambic recently established a significant collaboration with Jazz Therapeutics to jointly research IAM1363, a small molecule HER2 tyrosine kinase inhibitor, in combination with Jazz's HER2-targeted bispecific antibody Ziihera, targeting difficult-to-treat HER2-positive breast cancer [8]. - The collaboration was spurred by promising early clinical data for IAM1363, which demonstrated anti-tumor activity across various cancers, particularly in patients resistant to existing HER2-targeted therapies [8]. AI Empowerment in Drug Development - Iambic's core competitive advantage lies in its AI drug discovery platform, which streamlines the traditionally lengthy and costly drug development process, exemplified by IAM1363, which was designed to overcome limitations of current HER2-targeted therapies [10]. Future Outlook - Iambic's growth trajectory reflects the broader AI pharmaceutical landscape, having raised $53 million in Series A funding in 2021 and $100 million in Series B funding in 2023, alongside collaborations with companies like Revolution Medicines, indicating its AI platform's potential for commercial value [12]. - With new funding and deepening collaborations, Iambic is transitioning from a technology validation-focused AI platform to a biopharmaceutical company with multiple clinical pipelines and strong commercialization potential [12]. Rapid Prediction and Intelligent Design - Utilizing its advanced protein structure prediction model NeuralPLexer, Iambic can quickly and accurately predict drug molecule interactions with target proteins, significantly shortening preclinical research timelines [14]. - Based on these predictions, the company can design superior and safer drug candidates, enhancing the efficiency of the drug development process [14].

Core Insights - SciSparc Ltd. has initiated a new program to advance 3D protein modeling using quantum computing technology, aiming to enhance drug discovery accuracy and potentially lead to breakthroughs in structural biology and personalized medicine [1][3] Company Overview - SciSparc Ltd. is a clinical-stage pharmaceutical company focused on developing therapies for central nervous system disorders, with a portfolio that includes cannabinoid pharmaceuticals [4] Initiative Details - The new Initiative will leverage quantum computing to improve the accuracy of predicting protein structures and their interactions with ligands, addressing the limitations of traditional computing methods [3][6] - A dedicated research team will be formed to integrate quantum computing algorithms into 3D protein modeling, with initial efforts focusing on refining these algorithms for drug discovery applications in neurological and rare diseases [3][6] Collaboration and Development - The company plans to collaborate with leading experts in quantum computing and structural biology to build its capabilities in this area [3] - A new wholly owned Israeli subsidiary will be established to operate the Initiative, further enhancing the company's research and development efforts [3]

Core Insights - SciSparc Ltd. has announced the launch of an innovative initiative to advance 3D protein modeling using quantum computing technology, aiming to transform drug discovery with unprecedented accuracy in predicting protein structures and interactions [1][3] Company Overview - SciSparc Ltd. is a specialty clinical-stage pharmaceutical company focused on developing therapies for central nervous system disorders, with a portfolio that includes cannabinoid pharmaceuticals [4] Initiative Details - The new initiative will leverage quantum computing to simulate protein dynamics and interactions with ligands, which is expected to enhance the accuracy of drug discovery processes [3][6] - A dedicated research team will be formed to integrate quantum computing algorithms into 3D protein modeling, with initial efforts focusing on refining these algorithms for applications in neurological and rare diseases [3][6] - The company plans to establish a wholly owned Israeli subsidiary to operate this initiative [3] Importance of Protein Structure - Understanding a protein's 3D structure is critical for drug design and treatment of diseases, as proteins are dynamic and their functions depend on their unique shapes [2]

Core Insights - The article highlights the investment strategies and achievements of Paul Franke, a seasoned investor with 39 years of trading experience, emphasizing his contrarian stock selection style and algorithmic analysis for identifying investment opportunities [1] Group 1: Investment Strategies - Paul Franke developed a system called "Victory Formation," which focuses on supply/demand imbalances indicated by specific stock price and volume movements [1] - The "Bottom Fishing Club" articles target deep value stocks or those showing significant upward technical momentum reversals [1] - "Volume Breakout Report" articles analyze positive trend changes supported by strong price and volume trading actions [1] Group 2: Performance and Recognition - Franke was consistently ranked among the top investment advisors nationally during the 1990s and achieved the 1 position in the Motley Fool® CAPS stock picking contest in 2008 and 2009, out of over 60,000 portfolios [1] - As of September 2025, he was ranked in the Top 4% of bloggers by TipRanks® for 12-month stock picking performance over the last decade [1] Group 3: Risk Management - Franke advises investors to implement stop-loss levels of 10% or 20% on individual stock choices and to maintain a diversified portfolio of at least 50 well-positioned stocks to enhance regular stock market outperformance [1]

Company Overview - Absci Corporation (NASDAQ:ABSI) was founded in 2018 and is headquartered in Seattle, focusing on integrating deep learning with high-throughput lab automation for biologics design and optimization at scale [2] - The company utilizes its Integrated Drug Creation (IDC) platform, which combines proprietary algorithms with protein engineering to rapidly develop antibody and enzyme candidates for pharmaceutical partners and its own pipeline [2] Recent Developments - Absci recently expanded its partnership with Almirall, launching a second program targeting chronic skin diseases, which builds on the successful delivery of an AI-designed antibody [3] - The company appointed experts Dr. Rodney Sinclair and Dr. David Goldberg to advise on ABS-201, an AI-designed therapy for hair loss disorders, expected to enter clinical evaluation in early 2026 [3] Technological Advancements - Absci announced collaborations with Oracle Cloud Infrastructure and AMD to enhance its AI-driven drug discovery capabilities [4] - The partnership with AMD includes a strategic investment, providing access to advanced chip technology and cloud resources for scaling model training and data processing [4] Financial Position - Absci secured $64 million in equity financing during July and August 2025, extending its operational runway through mid-2028 [5] - The funding will support the advancement of key pipeline programs, including ABS-101 and ABS-201, while accelerating partnered projects and strengthening the corporation's AI infrastructure for next-generation drug discovery [5]

Financial Data and Key Metrics Changes - For the fiscal year 2025 third quarter, the company reported record revenue of $96.1 million, an increase of 18% year over year [9][20] - Gross margin for the quarter was 53.4%, up from 43.3% in the previous year, reflecting improved operational efficiency and cost management [10][24] - Adjusted EBITDA loss was approximately $8 million, an improvement of about $14 million compared to the previous year [26] Business Line Data and Key Metrics Changes - Revenue from the synthetic biology (SynBio) segment was $35.2 million, reflecting a 7% year-over-year growth [10][20] - Next-generation sequencing (NGS) revenue increased to $55.3 million, a 27% year-over-year growth, driven by commercial assays for diagnostic tests [11][20] - Biopharma services revenue was $5.6 million, a 10% increase year over year [12][20] Market Data and Key Metrics Changes - Healthcare revenue rose to $56.4 million, a 32% increase compared to the same period last year [21] - Industrial chemical revenue was approximately flat at $23.1 million, while academic revenue grew by 7% to $15.9 million [22] - Geographically, revenue in the Americas increased by 16% to $59.4 million, while EMEA revenue rose by 30% to $30.7 million [23] Company Strategy and Development Direction - The company is focused on expanding its product portfolio and increasing market reach, particularly in the academic sector [9][10] - There is an emphasis on leveraging AI for drug discovery and enhancing customer engagement to drive growth [34] - The company aims to achieve adjusted EBITDA breakeven as a key operational milestone, with plans for continued top-line growth [18][35] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in the SynBio and NGS segments, citing strong customer relationships and demand [11][34] - The company is adapting to market shifts and challenges, viewing them as opportunities for innovation and growth [31][34] - Management highlighted the importance of maintaining gross margins above 50% while focusing on revenue growth [35] Other Important Information - The company ended the quarter with approximately $250.8 million in cash, cash equivalents, and short-term investments [27] - Guidance for total revenue for fiscal year 2025 is narrowed to $374 million to $376 million, indicating a year-over-year growth of approximately 19.7% at the midpoint [28] Q&A Session Summary Question: Insights on SynBio growth and customer trends - Management noted that existing products resonate well with customers, and there is a strong pipeline of new product introductions [39][40] Question: NGS product launch timelines and expectations - Management confirmed that product launches are on track, with expectations for significant growth in 2026 [46][49] Question: Impact of customer transition on revenue - Management indicated a $5 million revenue impact in Q4 due to a customer transition, with expectations for recovery in Q1 [60][61] Question: Academic market growth attribution - Management attributed growth in the U.S. academic market to the company's technology advantage and value proposition [64][66] Question: International growth and market adaptation - Management emphasized the company's low variable costs and ability to navigate tariff uncertainties, positioning it well for international growth [82]

Financial Data and Key Metrics Changes - The company reported record revenue of $96.1 million for the third quarter of fiscal 2025, an increase of 18% year over year [7][18] - Gross margin improved to 53.4%, up from 43.3% in the same quarter of fiscal 2024, reflecting better volume leverage and continuous improvement efforts [8][22] - Adjusted EBITDA loss was approximately $8 million, an improvement of about $14 million compared to fiscal 2024 [23] Business Line Data and Key Metrics Changes - Revenue from the synthetic biology (SynBio) segment was $35.2 million, reflecting a 7% year-over-year growth, with underlying revenue growth exceeding 20% when excluding a significant prior year order [9][18] - Next-generation sequencing (NGS) revenue reached $55.3 million, a 27% increase year over year, driven by commercial assays for diagnostic tests [9][19] - Biopharma services revenue was $5.6 million, growing 10% year over year, with a strong order funnel [10][19] Market Data and Key Metrics Changes - Healthcare revenue rose to $56.4 million, a 32% increase year over year, driven by large pharma and biotech customers [19] - Industrial chemical revenue was approximately flat at $23.1 million, while academic revenue grew 7% to $15.9 million [20] - Geographically, revenue in the Americas increased 16% to $59.4 million, EMEA revenue rose 30% to $30.7 million, and APAC revenue was $5.9 million [21] Company Strategy and Development Direction - The company is focused on expanding its product portfolio and increasing market reach, particularly in the academic sector [7][9] - Plans for new product launches in synthetic biology are expected to unlock new market opportunities [15][29] - The company aims to achieve adjusted EBITDA breakeven as a key operational milestone while continuing to drive top-line growth [16][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in synthetic biology and NGS, highlighting strong customer relationships and demand [9][31] - The company is adapting to market shifts and leveraging AI as a catalyst for increased demand across its product offerings [31][32] - Management acknowledged potential short-term fluctuations in certain product groups but emphasized the resilience of their diversified customer base [31][32] Other Important Information - The company ended the quarter with approximately $250.8 million in cash, cash equivalents, and short-term investments [24] - Guidance for total revenue in fiscal 2025 is narrowed to $374 million to $376 million, indicating a year-over-year growth of approximately 19.7% at the midpoint [24][25] Q&A Session Summary Question: Insights on SynBio growth and customer trends - Management noted that existing products resonate well with customers, and there is a significant opportunity to convert smaller accounts into future growth drivers [36][38] Question: NGS product launch timelines and expectations - Management confirmed that product launches have been on time, with expectations for significant growth in MRD revenue in 2026 [42][46] Question: Impact of customer transition on revenue - Management indicated a $5 million revenue impact in Q4 due to a customer transition, with expectations for some recovery in Q1 [50][60] Question: U.S. academic market growth drivers - Management attributed growth in the U.S. academic market to their technology advantage and the ability to provide more value for the same budget [62] Question: International growth and market adaptation - Management highlighted their low variable costs and ability to navigate tariff uncertainties, positioning them well for continued growth [78][80]