Recursion Shares Q1 2024 Financial Results and Business Updates
Recursion, a prominent clinical stage TechBio company listed on Nasdaq, has recently shared its business updates and financial results for the first quarter of 2024, ending March 31. The company, known for its efforts in decoding biology to streamline drug discovery, has several significant developments and achievements to report.
Upcoming Clinical Trial Readouts
Recursion is poised to unveil results from various Phase 2 clinical trials in the near future, starting in the third quarter of 2024. These include the SYCAMORE trial for Cerebral Cavernous Malformation (CCM) with REC-994, the POPLAR trial for Neurofibromatosis Type 2 (NF2) involving REC-2282, and the TUPELO trial for Familial Adenomatous Polyposis (FAP) with REC-4881. The LILAC trial for AXIN1 or APC mutant cancers, which began in early 2024, is also expected to provide Phase 2 data by the first half of 2025. Additionally, the company plans to present Phase 1 data for REC-3964, a novel C. difficile toxin inhibitor, at the World Congress on Infectious Diseases in June 2024.
Platform and Technological Advancements
Recursion has made significant strides in enhancing its technological capabilities. The company, in collaboration with NVIDIA, has nearly completed the construction of BioHive-2, a next-generation supercomputer composed of over 500 H100 GPUs. Performance benchmarking suggests this supercomputer might rank among the top 50 globally, potentially making it the most powerful in the biopharma sector. This computational prowess, combined with Recursion’s extensive datasets, supports the creation of foundational models across biology, chemistry, and patient outcomes.
The company has also scaled up its transcriptomics technology, achieving the sequencing of over a million transcriptomes. They aim to complete a comprehensive whole-genome knockout transcriptomics map in the coming quarters. Additionally, through active learning approaches, Recursion continues to refine its phenotypic and ADME compound profiling, which aids in rapidly generating enriched biological and chemical datasets.
Expansion through Partnerships
In a strategic move, Recursion has entered into a multi-year agreement with Helix to access hundreds of thousands of de-identified records. This data will be instrumental in training causal AI models and devising biomarker and patient stratification strategies, complementing Recursion’s integration of real-world patient data.
Recursion is also advancing its collaborative efforts with key partners like Bayer and Roche-Genentech in areas such as undruggable oncology and neuroscience. These partnerships, along with potential new collaborations, are expected to yield significant advancements in therapeutic discoveries.
Corporate Developments
In April 2024, Recursion appointed Dr. Najat Khan as Chief R&D Officer and Chief Commercialization Officer, bringing her extensive experience from Johnson & Johnson. The company also plans to open a new office in London to attract top talent in computational biology, machine learning, and data science. Professor Michael Bronstein from Oxford University will join Recursion as a Scientific Advisor.
Financial Highlights
For the first quarter of 2024, Recursion reported a revenue of $13.8 million, a slight increase from $12.1 million in the same period last year. Research and development expenses rose to $67.6 million, reflecting the company’s continued investment in its platform and pipeline. General and administrative expenses also saw an increase, totaling $31.4 million. The net loss for the quarter was $91.4 million, up from $65.3 million in the first quarter of 2023, primarily due to higher operational costs associated with the company’s expansion and upgrades.
Conclusion
Recursion continues to build on its innovative platform, combining large-scale data generation with substantial computational resources to drive advancements in drug discovery. With multiple clinical trials on the horizon, significant technological enhancements, and strategic partnerships, the company is well-positioned to make substantial contributions to the biopharma industry. The upcoming results from various clinical trials and the ongoing development of their supercomputer and transcriptomics technology are eagerly anticipated milestones for Recursion.
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