Exscientia Q2 and H1 2024 Business Update

Exscientia plc, a company listed on Nasdaq under the ticker EXAI, has unveiled significant advancements in its pipeline, collaborations, and financial performance for the second quarter and first half of 2024. These developments highlight the company's strategic moves and operational improvements.

Exscientia recently announced a definitive agreement to merge with Recursion Pharmaceuticals, a step that interim CEO and Chief Scientific Officer David Hallett, Ph.D., believes will enhance their capability to develop better drugs more efficiently. The merger aims to integrate Recursion’s comprehensive biology and translational science expertise with Exscientia’s precision chemistry and automated synthesis, thus creating a leading end-to-end drug discovery platform.

In the first half of 2024, Exscientia focused on advancing its artificial intelligence (AI)-driven pipeline and moving towards autonomous drug design. A major strategic decision was to acquire full rights to their CDK7 inhibitor, GTAEXS617 (‘617), which is currently in Phase 1/2 trials for advanced solid tumors. This acquisition from partner GT Apeiron, who retains a stake in Exscientia, underscores the potential Halllett sees in ‘617. The company expects to share key pharmacokinetic, pharmacodynamic, and safety data later this year and plans to commence the dose expansion phase soon.

Exscientia is also progressing with EXS74539 (‘539), a brain-penetrant LSD1 inhibitor poised to enter clinical trials after an Investigational New Drug (IND) application later this year, and EXS73565 (‘565), a MALT1 inhibitor for B-cell malignancies like chronic lymphocytic leukemia (CLL), expected to begin trials in early 2025.

The company’s collaborations are also making headway. The partnership with Sanofi focuses on immunology and inflammation, while work with Merck KGaA in Germany progresses through early discovery stages. Exscientia has also teamed up with READDI, a non-profit funded by the National Institute of Allergy and Infectious Diseases (NIAID), to enhance AI-designed antiviral compounds for pandemic preparedness. This collaboration leverages Exscientia’s generative AI to combat coronaviruses, with READDI contributing antiviral expertise and funding.

In terms of technological development, Exscientia is expanding its use of Amazon Web Services (AWS) to power its drug discovery and automation platform. Their advanced platform, built on AWS, integrates AI-driven drug design and robotic lab automation, aiming to reduce drug development costs and time. The company's Design-Make-Test-Learn facility, now fully operational, has started producing compounds designed with Exscientia’s proprietary GenAI and manufactured using their automated systems.

Leadership changes include the appointment of Marie-Louise Fjallskog, M.D., Ph.D., as interim Chief Medical Officer, and Nicola Richmond, Ph.D., as Chief Scientist, AI. These appointments bring significant expertise in oncology drug development and AI-driven drug discovery, respectively.

Financially, Exscientia reported revenues of $5.6 million and $12.3 million for the three and six months ended June 30, 2024, showing an increase from the previous year. Research and development expenses decreased to $31.7 million and $61.5 million due to cost-reduction measures and operational efficiencies. General and administrative expenses for the same periods were $21.2 million and $25.6 million, reflecting costs related to severance and other efficiency measures. The company saw cash inflows of $1.4 million from collaborations during the second quarter. Net operating cash outflows were $45.8 million and $84.8 million for the three and six months ended June 30, 2024, with a cash balance of $370.1 million as of June 30, 2024.

Overall, Exscientia is making strategic advancements in its drug discovery pipeline, fostering crucial collaborations, investing in technology, and navigating financial challenges to strengthen its position in the pharmaceutical industry.