Recursion Pharmaceuticals : Press Release (recursion reports first quarter 2025 financial results and)
RXRX
Published on 05/05/2025 at 09:28
May 5, 2025
SALT LAKE CITY, May 05, 2025 (GLOBE NEWSWIRE) -- Recursion (Nasdaq: RXRX) a leading clinical stage TechBio company decoding biology to radically improve lives, today reported business updates and financial results for its first quarter ended March 31, 2025.
Recursion will host a (L)earnings Call on May 5, 2025 at 8:00 am ET / 6:00 am MT / 1:00 pm BST from Recursion's X (formerly Twitter), LinkedIn, and YouTube accounts giving analysts, investors, and the public the opportunity to ask questions of the company by submitting questions here: https://forms.gle/ciFX2KbLfkAvh3Q87.
"Recursion's decade-long investment in AI is driving a decisive, data-led portfolio strategy," said Chris Gibson, Co-Founder and CEO of Recursion. "We are prioritizing high-potential programs to accelerate better treatments to patients, building on our platform's unique ability to learn and lead this transformative shift in drug discovery. Our deep appreciation goes to the patients and investigators whose participation is invaluable on this journey."
"Our portfolio evolution reflects Recursion's commitment to advancing medicines in areas of high unmet need where we believe we can have the
greatest impact," said Najat Khan, Chief R&D Officer and Chief Commercial Officer at Recursion. "As part of our business combination with Exscientia, we are proactively streamlining our portfolio, platform, and operations, making deliberate tradeoffs to focus resources on programs with the strongest scientific rationale and the highest potential for near- and long-term impact. Powered by the integrated Recursion OS platform, we are advancing a focused set of differentiated internal and partnered programs. Our approach is grounded in rigorous science and evidenced by the consistent delivery of key milestones with leading pharmaceutical and technology collaborators."
upper GI disease severity.
nomination expected 2H25:
insulin levels or hyperglycemia markers in wild-type mice, unlike standard-of-care PI3K inhibitors.
Recursion and Sanofi advanced their fourth partnered program through a significant discovery milestone. This milestone involved the Recursion OS identifying differentiated, orally active small molecule leads against a high-interest immune cell target. These leads exhibit potential best-in-class
properties, addressing significant liabilities seen in other candidates. As a result of this milestone, Recursion has received a $7 million milestone payment with the potential for over $300 million in additional milestone payments for this program. In total, the partnership has generated $130 million of cash inflows (including an upfront payment) to Recursion to date.
Recursion's collaboration within Neuroscience and a GI Oncology indication for Roche and Genentech continues to bring unbiased novel biological insights to potential programs. To date, the collaboration has built five phenomaps derived from a vast dataset of over one trillion iPSC-derived cells, one hundred billion GI Oncology relevant cells, alongside around 5,000 transcriptomes representing approximately 171 TB of data. Our approach continues to integrate high-throughput screens of genetics and small molecules with detailed cell measurements, informing our AI/ML models. Looking ahead, we are actively building additional maps and are focused on leveraging the Recursion OS and collaborating with Roche and Genentech to identify new novel programs that will fuel program advancement in both a GI Oncology indication and within Neuroscience.
"Recursion is stronger as a combined company, allowing us to not only deliver on operational goals more efficiently, but also be nimble in periods of uncertainty," stated Ben Taylor, CFO of Recursion and President Recursion UK. "We have been able to significantly lower costs without cutting important platform capabilities by decreasing overall capacity. We maintain the ability to restore capacity in the future to respond to market needs. This aligns closely with our fundamental goal of using AI and automation to make drug discovery more flexible, efficient and effective."
one-time transaction related costs in the first quarter of 2025.
*Cash burn is a non-GAAP financial measure. See "Non-GAAP Financial Measures" below for additional information regarding cash burn and for a reconciliation of cash burn to net cash used in operating activities for historical periods, the most directly comparable GAAP financial measure. With respect to the expected cash burn for 2025, certain items that affect the calculation of the GAAP financial measure for net cash used by operating activities are not available on a forward-looking basis because such items cannot be reasonably calculated without unreasonable effort due to the unpredictability of the amounts and timing of events affecting the items we exclude from cash burn. Consequently, the Company is unable to provide a reconciliation of net cash used in operating activities to cash burn for the Company's fiscal 2025 guidance.
Recursion (NASDAQ: RXRX) is a clinical stage TechBio company leading the space by decoding biology to radically improve lives. Enabling its mission is the Recursion OS, a platform built across diverse technologies that continuously generate one of the world's largest proprietary biological and chemical datasets. Recursion leverages sophisticated machine-learning algorithms to distill from its dataset a collection of trillions of searchable relationships across biology and chemistry unconstrained by human bias. By commanding massive experimental scale - up to millions of wet lab
experiments weekly - and massive computational scale - owning and operating one of the most powerful supercomputers in the world, Recursion is uniting technology, biology and chemistry to advance the future of medicine.
Recursion is headquartered in Salt Lake City, where it is a founding member of BioHive, the Utah life sciences industry collective. Recursion also has offices in Toronto, Montréal, New York, London, Oxford area, and the San Francisco Bay area. Learn more at https://www.Recursion.com, or connect on X (formerly Twitter) and LinkedIn.
Revenue
2,025
2,024
Operating revenue
$ 14,818
$ 13,491
Grant revenue
(73)
303
Total revenue
14,745
13,794
Operating costs and expenses
Cost of revenue
21,829
11,166
Research and development
129,634
67,560
General and administrative
54,651
31,408
Total operating costs and expenses
206,114
110,134
Loss from operations
(191,369)
(96,340)
Other income (loss), net
(11,277)
4,188
Loss before income tax benefit
(202,646)
(92,152)
Income tax benefit
158
779
Net loss
$ (202,488)
$ (91,373)
Per share data
Net loss per share of Class A, B and Exchangeable common stock, basic and diluted
$ (0.50)
$ (0.39)
(in thousands)
Assets
Current assets
Cash and cash equivalents
$ 500,453
$ 594,350
Restricted cash
3,075
3,045
Other receivables
46,124
49,166
Prepaid data assets
2,470
29,601
Other current assets
32,023
38,107
Total current assets
584,145
714,269
Restricted cash, non-current
5,629
5,629
Property and equipment, net
126,834
141,063
Operating lease right-of-use assets
53,186
65,877
Financing lease right-of-use assets
24,757
26,273
Intangible assets, net
335,790
335,855
Goodwill
158,112
148,873
Deferred tax assets
2,003
1,934
Other assets, non-current
14,778
8,825
Total assets
$ 1,305,234
$ 1,448,598
Liabilities and stockholders' equity
Current liabilities
Accounts payable
$ 25,086
$ 21,613
Accrued expenses and other liabilities
56,804
81,872
Unearned revenue
39,651
61,767
Operating lease liabilities
11,853
13,795
Notes payable and financing lease liabilities
8,587
8,425
Total current liabilities
141,981
187,472
Unearned revenue, non-current
129,609
118,765
Operating lease liabilities, non-current
56,024
67,250
Notes payable and financing lease liabilities, non-current
16,446
19,022
Deferred tax liabilities
22,437
16,575
Other liabilities, non-current
4,790
4,732
Total liabilities
371,287
413,816
Commitments and contingencies
Stockholders' equity
Common stock (Class A, B and Exchangeable)
4
4
Additional paid-in capital
2,533,492
2,473,698
Accumulated deficit
(1,633,694)
(1,431,283)
Accumulated other comprehensive income (loss)
14,145
(7,637)
Total stockholders' equity
933,947
1,034,782
Total liabilities and stockholders' equity
$ 1,305,234
$ 1,448,598
To supplement our financial statements prepared in accordance with U. S. GAAP, we monitor and consider cash burn, which is a non-GAAP financial measure. We define cash burn as the net cash used in operating activities, excluding non-ordinary course transaction costs, plus partnership cash inflows and purchases of property and equipment. This non-GAAP financial measure is not based on any standardized methodology prescribed by
U.S. GAAP and is not necessarily comparable to similarly-titled measures presented by other companies. We believe cash burn to be a liquidity measure that provides useful information to management and investors about the amount of cash consumed by the operations of the business, including our purchases of property and equipment. A limitation of using this non-U.S. GAAP measure is that cash burn does not represent the total
change in cash and cash equivalents for the period because it excludes cash provided by or used for other investing and financing activities. We account for this limitation by providing information about our capital expenditures and other investing and financing activities in the statements of cash flows in our financial statements and by presenting cash flows from investing and financing activities in our reconciliation of cash burn. In addition, it is important to note that other companies, including companies in our industry, may not use cash burn, may calculate cash burn in a different manner than we do or may use other financial measures to evaluate their performance, all of which could reduce the usefulness of cash burn as a comparative measure. Because of these limitations, cash burn should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with U.S. GAAP. The reconciliation of cash burn to net cash used in operating activities and cash and cash equivalents is provided in the tables below (in millions of dollars):
Cash burn - 1Q 25
(in millions)
Recursion net cash used in operating activities
132
*
Subtract: transaction costs
(16)
Add: purchases of property and equipment
2
*
Cash burn - 1Q 25
118
*: This is from Recursion inc Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2025
Cash burn - 2024
(in millions)
Exscientia change in cash, cash equivalents and bank deposits
$ 184
&
Recursion net cash used in operating activities
359
*
Add: partnership cash inflows
49
Add: purchases of property and equipment
14
*
Cash burn - 2024
$ 606
&: See below table for the calculation of this amount
*: This is from Recursion inc Consolidated Statement of Cash Flows for the year ended December 31, 2024
Cash, cash equivalents and bank deposits - Exscientia
(in millions) November 20, 2024 December 31, 2023
Change
Cash and cash equivalents
$
277
£
259
Short term bank deposits
104
Total - GBP
N/A
£
363
GDP to USD rate
N/A
1.27
Total - USD
$
277
$
461
$
(184)
This document contains information that includes or is based upon "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995, including, without limitation, those regarding Recursion's cash position, cash burn, and cash runway; the potential to deliver effective therapies to patients in high-need areas; Recursion's ability to demonstrate the potential of technology-driven approaches to increase speed, quality and the scalability of drug discovery; the potential outlook for programs being prioritized and deprioritized; Recursion's future as a leader in TechBio and ability to deliver better treatments to patients faster; the completion of core integration plans and the results of the business combination with Exscientia; expectations relating to early and late stage discovery, preclinical, and clinical programs, including timelines for commencement of and enrollment in studies, data readouts, and progression toward IND-enabling studies; expectations and developments with respect to licenses and collaborations, including option exercises by partners and additional partnerships, the value of data generated for the Roche-Genentech partnership, the value of data from new partnerships, and the promising future of partnership programs, the acceleration of progress across multiple partnered programs; prospective products and their potential future indications and market opportunities; developments with Recursion OS and other technologies; business and financial plans and performance; and all other statements that are not historical facts. Forward-looking statements may or may not include identifying words such as "plan," "will," "expect," "anticipate," "intend," "believe," "potential," "continue," and similar terms. These
statements are subject to known or unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statements, including but not limited to: challenges inherent in pharmaceutical research and development, including the timing and results of preclinical and clinical programs, where the risk of failure is high and failure can occur at any stage prior to or after regulatory approval due to lack of sufficient efficacy, safety considerations, or other factors; our ability to leverage and enhance our drug discovery platform; our ability to obtain financing for development activities and other corporate purposes; the success of our collaboration activities; our ability to obtain regulatory approval of, and ultimately commercialize, drug candidates; our ability to obtain, maintain, and enforce intellectual property protections; cyberattacks or other disruptions to our technology systems; our ability to attract, motivate, and retain key employees and manage our growth; inflation and other macroeconomic issues; and other risks and uncertainties such as those described under the heading "Risk Factors" in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. All forward-looking statements are based on management's current estimates, projections, and assumptions, and Recursion undertakes no obligation to correct or update any such statements, whether as a result of new information, future developments, or otherwise, except to the extent required by applicable law.
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Source: Recursion Pharmaceuticals
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Recursion Pharmaceuticals Inc. published this content on May 05, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 05, 2025 at 13:22 UTC.