Financial Data and Key Metrics Changes - The company ended the quarter with $509 million in cash [67] - Cash burn for Q1 2025 was approximately $118 million, excluding partnership inflows and non-cash effects [68] - The company expects a cash runway extending into mid-2027 [69] 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] - The pipeline reflects a strategic application of Recursion OS and AI, emphasizing differentiated medicines [12] Market Data and Key Metrics Changes - The company has generated over $450 million from partnerships, including four collaborations with Sanofi [7][69] - The company is actively pursuing new business development opportunities to match operational capacity with partnerships [71] Company Strategy and Development Direction - The company aims to build a learning system, the Recursion operating system, to improve drug discovery and development [2][6] - The focus is on disciplined capital allocation and prioritizing programs that meet high standards of differentiation [30] - The company is committed to leveraging AI throughout the drug development process [76] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenging macroeconomic environment and emphasizes disciplined decision-making [6] - The company is optimistic about the potential for significant milestones from existing partnerships in the coming quarters [76] Other Important Information - The company has deprioritized three programs (NF2, CCM, and C. Diff) based on clinical data and strategic considerations [13][22][27] - The company is strategically pausing the LSD1 program to assess opportunities for a more differentiated target product profile [21] Q&A Session Summary Question: What burn rate do you anticipate exiting 2025 or entering 2026 with? - The company has not provided specific guidance but targets a budget of $450 million or less for the year, aiming to extend the runway without impacting execution [78][79] 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 [82] Question: What new levers in the OS are being used to accelerate partnership programs to commercialization? - Management highlighted three areas: enhanced biological insights, improved chemistry and design modeling, and better understanding of patient populations for differentiated target product profiles [83]

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]