Recursion Pharmaceuticals FY Conference Summary Company Overview - **Company**: Recursion Pharmaceuticals (NasdaqGS:RXRX) - **Event**: 44th Annual J.P. Morgan Healthcare Conference - **Date**: January 13, 2026 Key Industry Insights - **Focus on AI in Drug Development**: Recursion emphasizes the integration of AI in drug discovery and development, aiming to decode complex biological processes to create effective medicines [3][4][5] - **Patient-Centric Approach**: The company prioritizes patient needs, focusing on developing better medicines faster and at scale [3][4] Core Company Highlights - **Clinical Programs**: Recursion has five clinical programs and 15 discovery programs, with a notable achievement of their first AI-enabled clinical proof of concept [5][6] - **Financial Position**: The company reported $755 million in cash at year-end 2025, providing a runway until the end of 2027. They expect a cash burn of less than $390 million in 2026, a 35% reduction from 2024 [5][10][24] - **Partnerships**: Recursion has secured over $500 million in upfront and milestone payments from partnerships with companies like Roche, Genentech, and Sanofi, with potential milestones averaging over $300 million per program [5][6] Clinical Development Insights - **REC-4881 Program**: This program targets familial adenomatous polyposis (FAP), a disease with over 50,000 patients in the US and EU and no approved pharmacotherapies. The program has shown a 75% patient response rate and significant polyp reduction [12][15][25] - **Regulatory Engagement**: The company plans to engage with the FDA in the first half of 2026 to define a registrational study plan for REC-4881, utilizing real-world evidence to support their case [27][29] Technological Advancements - **AI-Native Platform**: Recursion's platform integrates wet and dry lab capabilities, allowing for the generation of over 100 million AI-generated molecules, significantly speeding up the drug development process [20][21] - **Phenomics and Omics Data**: The company is layering omics data onto their phenomics approach to enhance target identification and drug development efficiency [19][20] Future Milestones - **Upcoming Data Releases**: Key upcoming milestones include early safety and pharmacokinetic data for the RBM39 program and further developments in their partnership programs with Roche and Sanofi [39][40][41] - **Focus on Novel Targets**: Recursion aims to continue identifying and developing first-in-class programs through their innovative AI-driven methodologies [40][41] Additional Considerations - **Market Positioning**: Recursion positions itself as a leader in AI-driven drug discovery, emphasizing the importance of high-quality data generation and the integration of technology in pharmaceutical development [31][32][36] - **Cultural and Operational Discipline**: The company highlights the importance of maintaining a motivated team and disciplined operations to drive success in their mission [46][47] This summary encapsulates the key points discussed during the conference, focusing on Recursion Pharmaceuticals' strategic direction, clinical advancements, and financial health.

Financial Data and Key Metrics Changes - The company ended the quarter with $509 million in cash, with a cash burn of approximately $118 million for Q1 2025, excluding partnership inflows and non-cash effects [67][68][70] - The expected cash runway extends into mid-2027, based on a budget of $450 million or less for the current year [70][72] Business Line Data and Key Metrics Changes - The company is focusing on five clinical and preclinical programs with a higher probability of success, particularly in oncology and rare diseases [12][13] - Three programs (NF2, CCM, and C. Diff) have been deprioritized due to limited clinical activity and lack of differentiation [23][24][28] Market Data and Key Metrics Changes - The company has generated over $450 million from partnerships, including four milestones achieved with Sanofi and a major milestone with Roche [7][69][61] - The unmet need for certain diseases, such as FAP and rare metabolic bone diseases, remains high, driving the focus on differentiated medicines [21][52] Company Strategy and Development Direction - The company aims to build a learning system, the Recursion Operating System, to improve drug discovery and development efficiency [2][6] - There is a commitment to sharpen the R&D portfolio and focus on programs that meet high standards of differentiation and address significant unmet needs [12][31] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenging macroeconomic environment and emphasizes disciplined decision-making to ensure long-term mission success [6][30] - The company anticipates meaningful readouts and catalysts across its internal pipeline in 2025 and 2026, with a focus on advancing clinical studies [33][34] Other Important Information - The company is leveraging AI and advanced analytics to enhance drug discovery and development processes [32][60] - The integration of the Recursion and Exensia platforms is expected to yield significant advancements in early-stage discovery programs [4][6] Q&A Session Summary Question: What burn rate do you anticipate exiting 2025 or entering 2026 with? - The company targets a budget of $450 million or less for the current year, with additional details to be provided as the year progresses [76][77] Question: When can we see an option on a molecule candidate from one of your partnerships? - The company has already optioned four programs in collaboration with Sanofi and is optimistic about future options moving into partners' pipelines [81] Question: What new levers in the OS are being used to accelerate partnership programs to commercialization? - The company is utilizing multimodal data to better understand patient populations and enhance the differentiation of target product profiles [82][84]