Recursion(US:RXRX)2025-11-05 14:00Financial Data and Key Metrics Changes - The company reported a pro forma cash balance of almost $800 million as of a few weeks ago, providing runway through the end of 2027 without additional financing [9][41] - The company achieved nearly $40 million in partnership inflows over the course of the year, contributing to over $500 million in total partnership inflows since inception [40][44] - The company reaffirmed its guidance for 2025 on an expense base of less than $450 million and for 2026, less than $390 million [41][42] Business Line Data and Key Metrics Changes - The collaboration with Roche and Genentech has resulted in the delivery of four whole genome phenomaps in GI oncology, generating over 100 billion GI oncology relevant cells [11] - The company earned a $30 million milestone payment from Roche and Genentech for the delivery of a whole genome neuromap, marking the second such milestone [10] Market Data and Key Metrics Changes - The company has identified numerous novel potential targets in both microglial and neuronal phenomaps, which are expected to lead to meaningful medicines in neuroscience [12][14] - The company is leveraging AI and machine learning techniques to enhance drug discovery and development processes, indicating a strong focus on technological advancement in the biotech sector [18][19] Company Strategy and Development Direction - The company aims to translate platform insights into repeatable clinical proof, focusing on both wholly owned programs and partnerships [7] - The strategic plan laid out in May allowed the company to hit multiple high-value milestones while reducing its expense base by 35% from 2024 [40][41] - The company is committed to maintaining deep, collaborative partnerships while being selective about new partnerships to ensure mutual value [60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong position and the potential for significant advancements in the next 18 months [9] - The new CEO emphasized the importance of translating data and insights into tangible proof points that matter for patients and shareholders [64][66] - Management acknowledged the challenges of drug discovery but remains focused on disciplined execution and capital stewardship [66] Other Important Information - The company is in a robust financial position, having completed all restructuring associated with recent transactions and focusing on high-value projects [42][44] - The company is actively working on multiple programs, including CDK7 and REC-4881, with significant updates expected in the near future [46][49] Q&A Session Summary Question: Can you review expectations for cash burn through 2026 and how this works with runway expectations through 2027 without additional financing? - Management confirmed that the company has fully utilized the ATM and does not plan to open a new one, allowing for a cash balance that supports operations through the end of 2027 without additional financing [51][52] Question: How do you see platform utilization feeding into the quality or uniqueness of newer assets? - The new CEO highlighted that even older programs leverage the current platform significantly, and improvements in compounds continue throughout the development process [56][57] Question: Is Recursion looking to maintain current biopharma partnerships or expand to new partnerships in the near to midterm? - The company is focused on deepening existing partnerships while remaining open to new collaborations that can drive significant value [60]