Financial Data and Key Metrics Changes - The company ended the quarter with a strong cash balance of $533 million, reflecting effective expense management and cash inflows from partnerships and tax credits [43][44]. - The expected cash burn for 2026 is projected to be 35% less than previous estimates, demonstrating a commitment to operational efficiency [44]. Business Line Data and Key Metrics Changes - The company is advancing a pipeline of internal programs in oncology and rare diseases, alongside collaborations with partners like Roche, Sanofi, Bayer, and Merck KGA [8][12]. - The ClinTech platform is being deployed across all programs, enhancing patient stratification and trial execution, with potential for 50% faster enrollment at high-quality sites [6][7]. Market Data and Key Metrics Changes - The company is leveraging proprietary datasets and AI to enhance drug discovery and clinical trial design, which is expected to improve the quality and speed of bringing medicines to market [9][12]. - The partnership with Sanofi has achieved multiple milestones, indicating strong collaboration in challenging therapeutic areas [40][68]. Company Strategy and Development Direction - The company is focused on building a comprehensive drug discovery platform, integrating various data layers to enhance the probability of success in drug development [47][81]. - The Recursion OS 2.0 platform aims to bring unique biological insights and new targets to the clinic, emphasizing high-quality programs that address unmet medical needs [47][48]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting a catalyst-packed calendar with multiple readouts expected in the coming quarters [48]. - The company is committed to maintaining high standards of quality while advancing its innovative platforms and partnerships [46][47]. Other Important Information - The company has made significant advancements in AI-driven drug design and patient connectivity, which are expected to enhance the efficiency of clinical trials [17][19]. - The integration of the ClinTech platform is anticipated to streamline operations and improve patient outcomes in clinical trials [6][7]. Q&A Session Summary Question: Is Bolts 2 the initiative with a major partner on foundational protein structure modeling? - Yes, Bolts 2 is the partnership mentioned earlier, aimed at enhancing protein structure modeling [49]. Question: Why open source versus keeping it internal? - The company believes in commoditizing certain technologies to foster collaboration while retaining proprietary tools that provide a competitive advantage [50]. Question: What standard of care is allowed in the CDK7 combo expansion cohort in ovarian cancer? - The standard of care will include single-agent chemotherapy plus Bevacizumab, with median progression-free survival (PFS) around 6.7 months [53]. Question: Will multiomic profiling dictate patient enrollment in future studies for RBM 39? - Yes, the multiomic approach will help identify relevant patient populations for enrollment based on biological insights [56][58]. Question: What is the differentiation of RBM 39 compared to other CDK targeting assets? - RBM 39 is not a kinase and offers selectivity advantages over similar targets like CDK 12 and CDK 13, which have challenges in selectivity [62][63]. Question: What is the threshold for success in the upcoming FAP data readout? - The company is looking for meaningful improvement in polyp burden reduction compared to existing off-label therapies [65]. Question: Can you provide details on the $7 million milestone achieved under the Sanofi collaboration? - The milestone was achieved for a challenging target in the immunology space, reflecting progress in the partnership [68].

Financial Data and Key Metrics Changes - The company ended the quarter with a strong cash balance of $533 million, reflecting effective expense management and cash inflows from partnerships and tax credits [42][43] - Expected cash burn in 2026 is projected to be 35% less than the previous year, demonstrating a commitment to operational efficiency [43] Business Line Data and Key Metrics Changes - The company is advancing a pipeline of internal programs in oncology and rare diseases, alongside collaborations with partners like Roche, Sanofi, Bayer, and Merck KGA [7][39] - The ClinTech platform is being deployed across all programs, enhancing patient stratification and trial execution, with projections for 50% faster enrollment at high-quality sites [6][7] Market Data and Key Metrics Changes - The company is leveraging proprietary datasets and AI to enhance drug discovery and development, with significant advancements in partnerships and internal programs [11][39] - The partnership with Sanofi achieved its fourth milestone, indicating progress in challenging targets within immunology and oncology [39] Company Strategy and Development Direction - The focus is on building a comprehensive drug discovery platform, Recursion OS 2.0, integrating various data sources and technologies to improve the efficiency and success rate of drug development [46][47] - The company aims to bring unique biological insights and new targets to the clinic faster and at lower costs, emphasizing the importance of high-quality programs [8][47] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting a catalyst-packed calendar with multiple readouts expected in the coming quarters [48] - The company is committed to maintaining a high bar for quality while exploring innovative approaches to drug discovery and development [46][47] Other Important Information - The company is actively working on a virtual cell model to predict cellular responses to various interventions, which could significantly enhance drug discovery efforts [78][80] - The integration of AI and multiomic data is central to the company's strategy, allowing for more precise patient targeting and drug design [16][57] Q&A Session Summary Question: Is Bolts two the initiative with a major partner on foundational protein structure modeling? - Yes, Bolts two is the partnership mentioned earlier, aimed at enhancing protein structure modeling [49] Question: Why open source versus keeping it internal? - The company believes in commoditizing certain technologies while retaining proprietary tools that provide a competitive advantage [50] Question: For the CDK7 combo expansion cohort in ovarian cancer, what standard of care are you allowing in the trial? - The standard of care will include single-agent chemotherapy plus Bevacizumab, with a median PFS of about 6.7 months [52][53] Question: Do you expect the data from multiomic profiling for RBM 39 to dictate future patient enrollment? - Yes, the data will help select patients for future studies, focusing on those with specific biomarkers [55][57] Question: What is the differentiation of RBM 39 compared to other CDK targeting assets? - RBM 39 is not a kinase and offers selectivity advantages over similar targets like CDK 12 and CDK 13 [61] Question: What visibility do you have on the potential $100 million in milestones by 2026? - The guidance is based on existing partnerships and programs, with probability-weighted estimates for milestone achievements [70][71] Question: How does the company plan to achieve its cash runway guidance through Q4 2027? - The company is focused on cash flows, managing expenses efficiently, and executing existing partnerships to ensure a sustainable cash runway [72][75] Question: What ambitious initiatives are being planned to reflect the next level of thinking? - The company is investing in large-scale compute initiatives and developing a virtual cell model to enhance drug discovery capabilities [78][80]

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]