Key Takeaways RXRX acquired Rallybio's full stake in the joint HPP program, including REV102 and a backup molecule. The deal allows RXRX to accelerate the development of REV102 using its Recursion OS AI platform for HPP. REV102 is a selective ENPP1 inhibitor with strong preclinical safety data; phase I studies begin in late 2026.Shares of Recursion Pharmaceuticals (RXRX) gained 8.7% on Tuesday and continue to gain today. The uptrend was triggered after it announced acquiring Rallybio’s (RLYB) full interes ...

CANADA - 2025/06/08: In this photo illustration, the Recursion Pharmaceuticals logo is seen ... More displayed on a smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesRecursion Pharmaceuticals (NASDAQ:RXRX) has experienced notable share price fluctuations in 2025, falling 27% year-to-date and trading over 55% beneath its 52-week high of $12. In spite of this underperformance, the clinical-stage TechBio firm continues to at ...

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]

1Q25 (L)earnings MAY 2025 This presentation of Recursion Pharmaceuticals, Inc. ("Recursion," "we," "us," or "our") and any accompanying discussion contain statements that are not historical facts may be considered forward-looking statements under federal securities laws and may be identified by words such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "potential," "predicts," "projects," "seeks," "should," "will," or words of similar meaning and include, but are not limited to, st ...

Core Insights - Recursion Pharmaceuticals (RXRX) and Schrodinger (SDGR) are leading the integration of artificial intelligence in drug discovery, aiming to transform the biotech sector by improving efficiency and reducing costs [1][2][3] Company Overview Recursion Pharmaceuticals (RXRX) - RXRX utilizes its AI-driven platform, Recursion OS, in collaboration with NVIDIA to enhance drug discovery processes [5] - The company has faced setbacks, including the discontinuation of its lead candidate REC-994 and REC-2282 due to unfavorable efficacy results [6][8] - RXRX is focusing on developing candidates like REC-4881 for familial adenomatous polyposis, which has shown a preliminary median 43% reduction in polyp burden [8] - The company ended Q1 2025 with a cash balance of $509 million, expected to sustain operations into mid-2027 [9] - RXRX has collaboration agreements with major pharmaceutical companies, generating $15 million in collaboration revenues in Q1 2025, a slight increase from the previous year [10] Schrodinger (SDGR) - SDGR employs a physics-based computational platform for drug discovery, with its lead candidate SGR-1505 currently in a phase I study for B-cell malignancies [11][13] - The candidate has received FDA's Orphan Drug designation for mantle cell lymphoma [14] - SDGR's second candidate, SGR-2921, is being evaluated for acute myeloid leukemia, with initial results expected in the second half of 2025 [15] - The company generated $59.6 million in total revenues in Q1 2025, a 63% year-over-year increase [17] Financial Performance - RXRX's stock has declined 39.6% year-to-date, while SDGR's stock has increased by 10.9% [25] - RXRX trades at 1.78 times its book value, significantly lower than SDGR's 4.2 times, making RXRX more attractive from a valuation perspective [26][27] - The Zacks Consensus Estimate for RXRX's 2025 revenues implies a 22% year-over-year improvement, while SDGR's estimate suggests a 21% improvement but a widening loss per share [18][21] Market Position and Competitive Landscape - Both companies face competition from other biotech firms and tech-driven drug discovery companies, which may challenge their market differentiation [31] - Despite the competitive landscape, both RXRX and SDGR have the potential to revolutionize drug discovery by delivering cost-effective therapies [32] - RXRX is viewed as a better investment opportunity due to its innovative pipeline, collaboration agreements, and favorable valuation compared to SDGR [34]

Core Viewpoint - Recursion Pharmaceuticals (RXRX) has experienced a significant stock decline of 21.6% in May due to weaker-than-expected Q1 2025 results and the discontinuation of key drug candidates [1][2][15] Financial Performance - RXRX reported first-quarter 2025 results where both earnings and revenues missed estimates, leading to a year-to-date stock decline of 36.2%, compared to the industry’s 3.8% decline [1][4] - The stock is currently trading below its 50-day and 200-day moving averages, indicating underperformance in the sector and the S&P 500 [4] Pipeline Developments - The company has discontinued the development of its lead candidates, REC-994 and REC-2282, due to unfavorable efficacy results, and also halted the mid-stage study on REC-3964 [2][3][15] - RXRX is focusing on other candidates, such as REC-4881, which has shown a preliminary median 43% reduction in polyp burden in a phase Ib/II study, with additional data expected in H2 2025 [11] - Other candidates in early-stage development include REC-1245 for solid tumors and REC-617 for advanced solid tumors, with cash reserves of $509 million expected to sustain operations into mid-2027 [12] Strategic Collaborations - RXRX has ongoing collaborations with major pharmaceutical companies like Roche, Bayer, and Sanofi, which could enhance its pipeline and revenue potential [13] - The company recently received $7 million in collaboration revenues from Sanofi following a significant discovery milestone [13] Competitive Landscape - RXRX faces intense competition from other biotech firms and tech-driven drug discovery companies, which may challenge its ability to maintain a competitive edge [14] - The company’s investigational candidates are still in early stages, raising concerns about the timeline for commercialization [15] Valuation Metrics - RXRX is trading at a premium price/book value ratio of 1.88 compared to the industry average of 1.20, although it is below its five-year mean of 3.65 [16] - Loss estimates for 2025 remain constant at $1.34 per share, while 2026 estimates have narrowed from $1.20 to $1.17 [19] Future Outlook - The company is positioned as a leader in AI-driven drug discovery, with a strong focus on Precision Oncology and Rare Diseases, which could enhance shareholder value if pipeline candidates are successfully developed [22] - Recent setbacks in the pipeline are viewed as temporary, and the decline in stock price may present an attractive entry point for new investors [23]

Recursion Pharmaceuticals (RXRX) Q1 2025 Earnings Call May 05, 2025 08:00 AM ET Company Participants Chris Gibson - Co-Founder & CEONajat Khan - Chief R&D Officer, Chief Commercial Officer and DirectorBen Taylor - CFO & President Recursion UK Chris Gibson Hi, everybody. My name is Chris Gibson, cofounder and CEO of Recursion, and I'm delighted to welcome you to our learnings call this morning. We're gonna go ahead and get started. Perfect. So, of course, important to note that we're gonna be providing forwa ...

Pipeline: Delivered on our commitment to a more focused R&D strategy by advancing a streamlined portfolio of 5+ clinical and preclinical programs in oncology and rare disease, while deprioritizing 3 clinical programs and 1 preclinical program following a strategic, data-driven reviewPartnerships: Achieved fourth milestone in Sanofi collaboration, generating $7 million for an orally active small-molecule lead with best-in-class potential in autoimmune diseasesPlatform and Operations: Implemented meaningful s ...

REC-3565 is a potential best-in-class MALT1 inhibitor for multiple hematology indications, designed to reduce the risk of hyperbilirubinemia, a common side effect of other MALT1 inhibitorsSalt Lake City, UT, April 08, 2025 (GLOBE NEWSWIRE) -- Recursion (Nasdaq: RXRX), a leading clinical stage TechBio company decoding biology to radically improve lives, today announced that the first patient has been dosed in the Phase 1 EXCELERIZE clinical study evaluating REC-3565 for the treatment of relapsed or refractor ...

Recursion (NASDAQ: RXRX) is a clinical stage TechBio company leading the space by decoding biology to radically improve lives. Enabling its mission is the Recursion OS, a platform built across diverse technologies that continuously generate one of the world's largest proprietary biological and chemical datasets. Recursion leverages sophisticated machine-learning algorithms to distill from its dataset a collection of trillions of searchable relationships across biology and chemistry unconstrained by human bi ...