Recursion Updates Business and Reports Q3 2024 Financials

Recursion, a prominent TechBio company headquartered in Salt Lake City, is making significant strides in the field of drug discovery. In its third-quarter business update for the period ending September 30, 2024, the company highlighted several important milestones and financial results, demonstrating its progress and potential in the biotech industry.

One of the key achievements reported was the successful advancement of multiple clinical trials. Notably, Recursion shared promising topline data from its Phase 2 SYCAMORE clinical trial for Cerebral Cavernous Malformation (CCM). This randomized, double-blind, placebo-controlled study demonstrated safety and showed encouraging trends in MRI-based exploratory efficacy measures at the highest dose. These results included reductions in lesion volume and hemosiderin ring size, suggesting potential therapeutic benefits for patients with symptomatic CCM. Recursion plans to present these findings at an upcoming medical conference and publish them in a scientific journal while moving forward with discussions with the FDA about subsequent studies.

In October, Recursion dosed the first patient in its Phase 2 ALDER clinical trial for recurrent Clostridioides difficile infection (C. difficile). This trial aims to evaluate the non-antibiotic small molecule REC-3964, targeting this challenging infection. The study is designed to compare two doses of REC-3964 against an observational cohort, with preliminary results expected by the end of 2025.

Another significant development was the FDA's clearance of an Investigational New Drug (IND) application for REC-1245, a novel degrader targeting RBM39 in biomarker-enriched solid tumors and lymphoma. This Phase 1/2 trial is slated to begin dosing in the fourth quarter of 2024, with early data anticipated by the end of 2025.

In terms of partnerships, Recursion has continued to build on its strategic collaborations. The company's first neuroscience phenomap was optioned by Roche-Genentech for $30 million, with potential total fees exceeding $500 million contingent on further milestones. This collaboration underscores the value of Recursion's innovative platform in advancing drug discovery.

Recursion also expanded its partnership with Google Cloud to leverage advanced technologies, including generative AI and the Gemini models, enhancing the capabilities of the RecursionOS platform. This collaboration aims to improve search and data access, scale computational resources, and explore making certain AI models available on Google Cloud.

On the corporate front, Recursion is moving forward with a proposed business combination with Exscientia. Shareholders will vote on this merger during a special meeting scheduled for November 12, 2024, with the scheme of arrangement expected to be completed by November 20, 2024. This combination is anticipated to create a robust portfolio of tech-enabled clinical programs and value-creation opportunities through partnerships with biopharma and technology companies, along with the industry's first full-stack technology-enabled small molecule discovery platform.

Financially, Recursion reported a cash position of $427.6 million as of September 30, 2024. Total revenue for the third quarter was $26.1 million, a significant increase from $10.5 million in the same period the previous year, driven by partnerships and milestone fees. Research and development expenses also rose to $74.6 million, reflecting ongoing investments in platform enhancements and personnel. Despite these costs, the company's financial position remains strong, supported by the revenue from strategic collaborations.

In conclusion, Recursion's recent achievements in clinical trials, strategic partnerships, and financial performance highlight its potential to revolutionize drug discovery. With a focus on leveraging advanced technologies and expanding its clinical pipeline, Recursion is well-positioned to make significant contributions to the future of medicine.