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- **Leadership Transition**: Najat Khan will become CEO in January 2026, inheriting a $785M cash balance and a focus on AI-driven drug discovery.
- **Financial Discipline**: 35% expense reduction and $0.5B+ partnership inflows position Recursion for 2027 without dilutive financing.
- **AI & Clinical Momentum**: Upcoming data reads for CDK7 (Phase 1b/2) and REC-4881 (FAP) highlight platform efficiency and clinical execution.
- **Strategic Shift**: Transition to a more capital-efficient model with a focus on high-value partnerships and internal programs.

**【Management Transition & Leadership Update】**
- Christopher Gibson announced Najat Khan will succeed him as CEO on January 1, 2026, emphasizing her ability to blend technology and science to drive innovation in drug discovery.
- Najat Khan highlighted the company's bold ambition to build an end-to-end tech stack for drug discovery, leveraging proprietary data and AI.

**【CEO Remarks】**
- Recursion achieved a $785 million cash balance as of October 2025, providing runway through 2027 without additional financing.
- Key milestones include a $30 million milestone payment from Roche for a microglial cell map, part of over $0.5 billion in cumulative partnership inflows.
- The company is prioritizing efficient capital allocation and reducing expenses by 35% year-over-year.

**【CFO Financial Update】**
- Recursion reduced operating expenses by $200 million in 2025, with a focus on high-value partnerships and platform utilization.
- The company expects to maintain a sub-$450 million expense base in 2025 and sub-$390 million in 2026, excluding partnership inflows.

**【Q&A Highlights】**
- Management emphasized the importance of AI in drug discovery, citing partnerships with NVIDIA and Lilly as competitive advantages.
- Najat Khan outlined near-term priorities: translating platform insights into clinical proof, disciplined capital stewardship, and efficient go/no-go decision-making.
- The company is focused on advancing wholly owned programs (e.g., CDK7, REC-4881) and leveraging partnerships with Roche, Sanofi, and others to generate $40 million+ in 2025 partnership inflows.

Recursion Pharmaceuticals, Inc. (RXRX) Q3 2025 Earnings Call Transcript

- **OS 2.0 Breakthrough**: Recursion OS 2.0 integrates Exscientia AI with Recursion phenomics, enabling 1,000x faster protein-ligand binding predictions via Boltz-2 (200,000 downloads).
- **Pipeline Momentum**: CDK7 combination trial for ovarian cancer and RBM39 monotherapy for genomically unstable cancers on track for 2026 data. 4 Sanofi milestones achieved, including $7M payment.
- **Financial Strength**: $533M cash, 2026 burn at $390M, $100M+ partner inflows by 2026, and runway to Q4 2027.
- **Clinical Efficiency**: ClinTech reduces trial timelines by 2 months and improves dose optimization for 30% more patients.

**【CEO Opening Remarks】**
- Introduced Recursion OS 2.0, integrating Exscientia's AI with Recursion's phenomics platform to create an end-to-end drug discovery system.
- Highlighted Boltz-2, an open-source protein folding model with 200,000 downloads, enabling 1,000x faster ligand binding predictions than traditional methods.
- Presented ClinTech platform improvements: 30% better dose optimization in clinical trials and 50% faster patient recruitment, reducing trial timelines by 2 months.

**【Najat Khan: Pipeline Updates】**
- **CDK7 Program**: Monotherapy dose escalation underway in ovarian cancer; combination trial with platinum-resistant ovarian cancer expected to start soon. Designed for high permeability and rapid absorption, with 136 compounds synthesized in 12 months.
- **RBM39 Program**: First-in-class degrader targeting splicing defects in genomically unstable cancers. Monotherapy trial enrolling in endometrial and ovarian cancers, with data expected in H1 2026.
- **Partnerships**: 4 milestones achieved in Sanofi collaboration, including a $7M payment for a first-in-class immunology target. 5 phenomaps completed with Roche, focusing on neuroscience and GI-oncology.

**【Ben Taylor: Financial Update】**
- $533M cash balance at end of Q2, with 2026 cash burn projected at $390M (35% lower than 2024 levels).
- Received $29M UK R&D tax credit and $7M Sanofi milestone payment. Projected $100M+ partner inflows by end-2026.
- Cash runway extended to Q4 2027, excluding potential new partnerships or financings.

**【Q&A Highlights】**
- **CDK7 Trial Design**: Combination arm with bevacizumab and chemotherapy aims for PFS improvement over 6.7-month median. Monotherapy safety data expected late 2025.
- **RBM39 Differentiation**: Targets splicing defects rather than kinases, avoiding CDK12/13 selectivity challenges. Multi-omics analysis identifies biomarker-enriched populations.
- **FAP Program**: No approved therapies exist; interim data shows polyp burden reduction. Phase II data expected late 2025 to guide regulatory path.
- **Compute Investment**: Recursion ranks among top biopharma in AI compute scale, advancing virtual cell modeling and agent-based automation initiatives.

Recursion Pharmaceuticals, Inc. (RXRX) Q2 2025 Earnings Call Transcript

- **Pipeline Focus**: 5+ high-priority programs (CDK7, RBM39, FAP) with first/best-in-class potential. 
- **Financial Strength**: $509M cash runway into 2027, 2025 budget target < $450M. 
- **Clinical Momentum**: FAP Phase 2 shows 43% polyp burden reduction; PI3K preclinical data supports best-in-class profile. 
- **Partnership Growth**: $450M+ earned revenue, 4 Sanofi programs optioned, Roche phenomaps accelerate discovery. 
- **AI Integration**: Recursion 2.0 platform cuts discovery time by 75%, enabling rapid clinical translation.

**【CEO Opening Remarks】**
- Recursion 2.0 platform integrates phenomics, transcriptomics, and generative AI, enabling faster, more efficient drug discovery. 
- Pipeline refocused on 5+ high-priority programs with first/best-in-class potential, including CDK7, RBM39, and FAP. 
- Discontinued NF2, CCM, and C. diff programs due to limited clinical activity or external market dynamics. 
- 4 collaborations with partners like Sanofi and Roche, generating $450M+ in earned revenue.

**【CFO Financial Update】**
- Q1 2025 cash balance: $509M, with a runway into mid-2027. 
- Q1 2025 cash burn: $118M (excluding partnership inflows). 
- 2025 budget target: < $450M in operating expenses. 
- Strategic cost reductions achieved through automation, contract renegotiations, and capacity optimization.

**【R&D Pipeline Updates】**
- **CDK7 (REC-617):** Phase 1 monotherapy shows 43% median polyp burden reduction in FAP patients. Combination studies to start H1 2025. 
- **RBM39 (REC-1245):** IND-enabling studies completed in <18 months; Phase 1 monotherapy dosing ongoing. 
- **PI3K H1047R (REC-7735):** 100x selectivity over wild-type, with tumor regressions in preclinical models. DC nomination expected H2 2025. 
- **FAP (REC-4881):** 43% median polyp burden reduction in Phase 2; safety profile consistent with MEK inhibitors. 
- **ENPP1 (REV-102):** Preclinical data shows survival extension in early-onset HPP models; Phase 1 expected H2 2026.

**【Key Catalysts】**
- H1 2025: CDK7 combination study initiation, FAP Phase 2 expansion. 
- H2 2025: PI3K DC nomination, RBM39 early safety data. 
- H1 2026: RBM39 Phase 1 safety update, ENPP1 Phase 1 initiation.

**【Partnership Progress】**
- Sanofi: 4 programs optioned, with potential DC milestones in next 12-18 months. 
- Roche: >5 disease-specific phenomaps generated; lab-in-the-loop approach accelerates target validation. 
- Rallybio: ENPP1 collaboration targets adult-onset HPP with oral therapy alternative to ERT.

Recursion Pharmaceuticals (RXRX)-5 May 25-2025 Q1 Earnings call transcript

- **Clinical Breakthroughs**: REC-617 shows durable tumor responses in monotherapy; REC-994 Phase II hints at functional improvement in CCM. 
- **Pipeline Velocity**: 12 new trials launched in 2024, with 15+ preclinical programs advancing. Virtual cell models reduce R&D time by 60%. 
- **Financial Strength**: $600M+ cash runway, $45M+ milestone payments, and $100M+ merger synergies. 2025 focused on cost optimization and pipeline execution. 
- **Strategic Differentiation**: Exclusively owned supercomputer, multi-modal data integration, and Causal AI models drive 40%+ efficiency gains. 


**【CEO Opening Remarks】**
- **Clinical Milestones**: REC-617 (CDK7 inhibitor) showed early efficacy signals in monotherapy, with one patient achieving tumor reduction >6 months. REC-994 (CCM treatment) demonstrated chronic safety and encouraging lesion reduction in Phase II. 
- **Pipeline Expansion**: Launched 12 new clinical trials in 2024, including REC-1245 (RBM39 degradation), FAP, and C. difficile programs. Advanced 15+ preclinical programs, including LSD1 (SCLC) and MALT-1 (B-cell malignancies). 
- **Platform Progress**: Generated 1.4M ligand-binding maps, 6.2M weekly Phenomics images, and 1M transcriptomes. Deployed Causal AI models on Tempus/Helix patient data for small cell lung cancer stratification. 
- **Partnerships**: Received $30M milestone from Roche/Genentech for oncology/neuroscience Phenomaps, $15M from Sanofi for two advancing programs. Bayer/Merck KGaA collaborations also active. 

**【CFO Financial Update】**
- **2024 Results**: Pro forma revenue $83M, ending cash $600M+ (runway to 2027). Achieved $100M+ synergies post-Exscientia merger, with 40%+ cost reduction in R&D. 
- **Cash Flow**: $45M milestone payments from Roche/Sanofi, $3.5M NIH grants. 2025 pipeline catalysts include REC-617 combo trials, REC-7735 (PI3K inhibitor) IND, and virtual cell model validation. 
- **Cost Management**: $184M legacy Exscientia cash burn reduced to $55M/quarter. 2025 focus on optimizing Vienna spin-off and legacy sites. 

**【Q&A Highlights】**
- **Compute & Scale**: NVIDIA BioHive-2 supercomputer utilization >90%, enabling 2.5x efficiency in bioactive compound detection. Scale remains critical for multi-modal biological modeling. 
- **CCM Program**: REC-994 Phase II showed MRI lesion reduction (p=0.08) and functional improvement trends. FDA discussions planned for 2025 on powering Phase III for modified Rankin score. 
- **Virtual Cells**: Targeting 2025-2026 for virtual cell validation via reduced Phenomics/Transcriptomics data generation. Early benchmarks: 60% human time reduction in hit-to-lead, 40% cytotoxicity reduction. 
- **Partnership Strategy**: >$300M milestone potential per program, with Exscientia-style upfront + royalty model. Exploring direct commercialization for high-value assets like REC-7735. 
- **NIH Impact**: Salt Lake City incubator launched to support startups affected by NIH funding cuts. Long-term concern over US talent pipeline sustainability. 


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