Transaction Overview - Recursion and Exscientia are combining to bring better medicines to patients more rapidly and cost efficiently[11] - Exscientia shareholders will receive 0.7729 shares of Recursion Class A common stock for each Exscientia ordinary share[27] - Recursion shareholders will own approximately 74% of the combined company, while Exscientia shareholders will own approximately 26%[27] - The transaction is expected to close by early 2025, subject to shareholder approvals and closing conditions[27] Financial Synergies and Cash Position - The combined company will have approximately $850 million in cash as of the end of Q2 2024[11, 27] - Estimated annual synergies of $100 million or more are expected[11, 27] - The pro forma combined financial plans are expected to extend the cash runway into 2027[27] Pipeline and Partnerships - The combined company anticipates approximately 10 clinical readouts over the next 18 months[11, 12, 14] - Current partnerships have the potential for over $200 million in milestone payments over the next 2 years[11, 18] - The combined company has the potential for over $20 billion in total revenue before royalties from partners[18] - CDK4/6 inhibitors generated $11 billion in sales in 2023[31]

Financial Data and Key Metrics Changes - The company reported $83 million in revenue for 2024 on a pro forma basis, with an ending cash balance exceeding $600 million, providing a runway into 2027 [26] - The company expects to achieve a majority of the anticipated $100 million in synergies from the merger within the year, with potential for exceeding this run rate over time [27][28] Business Line Data and Key Metrics Changes - The company launched multiple clinical trials in 2024, including trials for advanced solid tumors and symptomatic cerebral cavernous malformation, demonstrating early efficacy signals [3][4][5] - The company has advanced its pipeline with IND and CTA updates for several programs, including small cell lung cancer and B cell malignancies [6][7] Market Data and Key Metrics Changes - The company generated $45 million in cash payments for achieving milestones from partnerships with Sanofi and Roche, indicating strong market validation of its technology [30] - The company has received a $30 million milestone from Roche for generating multiple whole genome phenomaps in oncology and neuroscience [12] Company Strategy and Development Direction - The company aims to integrate real-world data and advanced computational models to create a virtual cell environment, enhancing drug discovery and development efficiency [36][40] - The company is focused on building a comprehensive data stack across various biological levels, which is expected to provide a competitive advantage in the tech bio space [39][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to discover and develop better medicines over time, emphasizing a learning system that improves the probability of success for new molecules [65] - The company is optimistic about the upcoming year, with numerous potential catalysts across its pipeline and partnerships [29][33] Other Important Information - The company has initiated a new entity for its Vienna operations, allowing for a more focused approach to its business strategy [28] - The company is actively working on partnerships with major pharmaceutical companies, which are crucial for its revenue model [30][62] Q&A Session Summary Question: Concerns about scale in tech bio - Management believes that scale will continue to be essential in the complex field of biology and chemistry, despite advances in model training efficiency [42] Question: Progress with NVIDIA partnership - The partnership with NVIDIA is ongoing, focusing on deploying various models across complex supercomputers, including BioHive two [44] Question: Revenue drop in Q4 2024 - The revenue drop is attributed to the nature of the company's partnerships, where upfront payments are recognized over time rather than quarterly [48] Question: Expected cash burn for the year - The company is focused on managing cash burn and expects to remain under the projected figures while continuing to grow [50][53] Question: Updates on Rec. Nine ninety four program - Management highlighted the robust safety data from the program and indicated that there are promising signals for efficacy that will be explored further [56][59] Question: Plans to diversify revenue sources - The company is exploring different revenue streams but maintains that the economics from current pharma partnerships are highly attractive [60][62] Question: Visibility into milestone payments in 2025 - Management did not provide specific guidance on milestone payments but indicated ongoing achievements in partnerships that could generate revenue [68][71] Question: Validating results from virtual trials - The company relies on extensive laboratory setups to validate insights from models, ensuring that predictions are tested in real assays [75][76]