RXRX - Earnings call transcript Q4 2024 | Recursion Pharmaceuticals, Inc.

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Christopher Gibson

Welcome, everybody, to Recursion's [ Learnings ] Call. I'm Chris Gibson, Co-Founder and CEO, and I'm excited to take you through Recursions 2024, 2025 and the time ahead.

So with that, we'll jump into the slides, and I want to just set the stage, first of all, to share a little bit about the moment in time that we're in right now.

Recursion is leading this field of [indiscernible]. of way opportunity and that frontier to decode developed. the the change drugs at this to exciting biology We're are discovered are And XXXX this we're what future leading Recursion inevitable like. I what indicators look seeing may of think at in see to of like. are a everyone that into XXXX to about obvious the to make looks it what going cascade we're now proof future of biopharma what industry moving And more the points going is more and

first how about some we've to for efficacy is Now And got REC-XXX. review, solid with first have to by bit X programs, about I'll talk our data want want REC-XXX. we into little efficacy. in talking before inhibitor place dive for so I This during expected clinical the and I time off of sort readouts. talk of gotten that dose XXXX. in to would CDKX kick and And advanced a And see this year-end best-in-class clinical escalation that REC-XXX Last to we to phase of the start about study this was tumors. a potential to year, to speak. our the XXXX

in their who a was of signals and had who that We a had tumor also which but we early disease. [ us. to see efficacy. monotherapy, not reduction for patient stable safety, reasonable combo saw in only an would efficacy saw patients ] fact, have or in X one sustained of exciting opportunity for number with more is months typically And We expected therapy. had We

in very, kicking near really, off very is really we're this exciting, combo studies actually here the So term. and

to to superoxide chronic originate ones we symptomatic study trial. another robust a ] early one help And demonstrated many treat in scavenger opportunity signal potential these [ safety design also program, But in disease an oral [ efficacy this treating across a patients REK-XXX for study, future signals the that cavernous a cerebral ]. in the potential first year designed finding different us malformation for was to helped or of recursion, more. endpoints identify

encouraging trends and improvement modified We Phase score functional in in based in MRI encouraging [ also very reduction II on lesion study. measure in Rankin subjective the the saw ] size this

So very exciting the to of to the over earliest Recursion cards get from OS. programs from our to start perspective these turn

What's -- more, additional tumors. in degradation multiple for we in including launched our trials, solid trial REC-XXXX RBMXX

with also to familial polyposis difficile C. launch trial are our And We our REC-XXXX. adenomatous then able trial, REK-XXXX.

generation for program, initiate able Bio And REV-XXX which studies Beyond to that, the IND programs, CTA the malignancies, of to initiate MALT-X CTA we in Rally continue small and and in [ with or advance the is multiple our with IND next were our [ we clinic cancer, clearance in IND IND-enabling updates for for LSDX B-cell the a REC-XXXX. program, IPF of into venture studies with cell lung including molecules the joint hypophosphatasia towards ]. clinic part ]

slide. pipeline the on happened more Even

see we can and XXXX, of and were some excited you see coming green, in across continue we're delivering that here deliveries to robust XXXX into early all can that You that the throughout pipeline made year. the as we this we move

us gave we're It indications early our pipeline. wasn't advancing. it was our new so the many just that of also But platform that

There's clinical into mostly to just time I about the today we've our want enough little to the those programs started talking couple less not the over bit last programs of about some One in incredible talking the go and of a of all years, about early talk because space. science.

programs. want and Lilly models. selective used and [ of to to And more wild other mutant It's sparing [ program hundredfold this. selective probably This preclinical for importantly, couple identify This And I Recursion in a hyperglycemia REC-XXXX. compared inhibitor. this been deal most -- the seen type it's inhibitors PIX-kinase this mutant-selective to than we've ] XX those we've the ago, it we months early [ our saw x-fold ] the we optimize early a wild-type OS to molecule able is of Scorpion ] given that limited the we've against. tested limiting test highlight But one when more

bit And here. more I'll data little of the show you a

here, sort in can increasing tumor on the this on a and in You taken compound Scorpion which SDX which attraction. late-stage of garnered regression, you here. CDx optimization This REC-XXXX, see see left it compound is this much is we've par so of in vivo the variety the molecule, is that with model, our doses

this So to exciting really is see.

space to were what compared you hyperglycemia. mice, treated PIX molecules is at these is naive challenges lower as can the with the you at get side. at more twice high But mice even major I the about This is of highest over as inhibition this SDX excited that of molecule the if are of insulin you levels see wild-type REC-XXXX ], that naive look in the days efficacy in kinase one a dramatically see that dose that's for even dose on X the plasma [ XXX

our lot programs This first of this we is we continue as here a and had at are about potential talking discovery interest JPMorgan and We've exciting working teams this started partners to just from of one optimize molecule think of Recursion. really couple a We on it. ago, advance is advanced early weeks this really, the exciting. that discovery in or

working little partnerships. of we're in largest I ones Those Genentech, the KGaA. we're Roche pipeline, with Roche, and exciting Bayer a we're and the the advancing, Merck also our that Sanofi, these time programs spending Sanofi are to the amount about incredible want talk Beyond the on. partnerships bit

received, $XX say just in neuroscience and led start year. side novel and neuroscience. maps Recursion the a to oncology side, the we look at of in and excitement That was whole would we [ ton pheno Genentech Roche, last Roche to genome On I both biology side that a on at oncology exciting as the milestone generated multiple and ] million

On of XXXX, a milestones. advanced there's the Sanofi programs in near initial that are in million additional future number X programs aggregate towards through through payments generated Those we the as side, in well. milestones $XX advancing or

excited Bayer about we're with there do really to really work So our Merck and continue work and KGaA. exciting

talk a bit Finally, in the work on we our I about to want XXXX. platform did little

to and ago and We BioHive-X industry built the supercomputer believe is like this last really, single but compute, it foundation across think models, we NVIDIA. any actually just the launched lead year company. I continue by with year, it wholly feels data, operated across last biopharma and much further powerful owned than across We most was

models leveraging to have I advance year, thing our been know, models I the of build a these new a models running sort as different nets hard. variety of biology. of explore to And as of questions variety watch and of we architectures neural We've we wide been the towards foundation of to across these world over this build dashboard last it utilization

than as we data year, X.X capabilities X.X structure-based and were well. up brightfield million each million to Phenomics platform. we week target more this than last X grow us to more under Transcriptomes last produced Our of map since drug for at to And on our putting in XXXX. a expand X.X we just images million launched We've pockets multi-timepoint total and to discovery generated deconvolution million year. binding continue active ligands now able work

So really exciting capabilities, to multimodal advancing see these capabilities data Recursion. new data these at

in been XXXX in and space work in we've saw beginning And many for building ClinTech. of Causal translational the of what course, and discovery models the our AI years,

models [Helix to ] data Causal out of the and So Tempus first we for on data from start biology time. used the building patient data understanding AI

deploying projects the clinic framework the patient one of build lung data of the that small one into programs Tempus a exciting we're in think stratification advancing most for there. to I cancer was cell our here

started do building of a work clid-ops of to site recruitment start And automated [ and lot matching, patient to the tools as engagement and pipeline we've this scale tools accelerate recursion. essentially accelerate also to patient we enrollment ]

but So platform. exciting ClinTech really early side, full this we build days there stack on really, as the

data. talked into tech the Bio data leading it's before And different many across we've of platform the important chemistry. aggregating be I really move about really real-world to this us as able levels our and generating field and this aggregate for data or real-world biology companies space, So generate Recursion in think to

them. those take learn you data, can from can You

test. You can you might hypotheses the you ask laboratory different across can models, make biology those build all kinds these leverage that to of and of to in questions and back foundation go models

going Exscientia it's we've that And validate us here, just it's seeing able iterative what looking for And to essential the that quickly hypotheses these of loop alone, that been think field. industry advancing average. demonstrate makes we're to at looking excited be so compared Recursion leading to to and being the indicators able is we backwards already this

Exscientia the real-world an rest set and hypothesis, to data dramatically legacy molecules at compounds, to world these using the able back hits design average. more synthesizing up validate and we're to models of those take So optimized early early faster and fewer of the looking incredible stage tools, industry, the -- stage to able than the industry those a than them using move this take it were hit

to most And is less benchmark we're indicators trial and molecules of faster is to these success. And -- forward the money some really, that being want there But means industry look going to exciting. as I and to years industry we industry after And the probability in of average faster in show we're course, averages. the change the think that able what start movement going leading readout average that spending trial of across to compared the time to and really the we to less the spending coming success start hopefully of probability our measure important we compared ourselves are clinic.

back looking start we're you over last Lina, seeing forward few Lake these Lina to how can the SVP, about benchmarks talk bit our we companies about [ a not Head want looking of I And taking me little up together, ] combination talk to just Nilsson, to maybe now join improve. Exscientia our and how and to since in here Platform invite Salt brought the City months

Lina Nilsson

Yes. Thanks, Chris.

X X drug efficiencies independent as complementary angles. discovery already from built realizing already companies, development technology X Chris and mentioned, are as platforms So that great in we

around founded mapping. were insights we biology Recursion, from At complex novel

efficiently and treatments. giant properties side, compound for building optimization, technologies, with for health And generating on disease. multiparameter models molecules essentially potential models foundation so for So then human of data the industry-leading sets, synthesizing the fit-for-purpose Exscientia right

very more rapidly X at we're generating value. the the specifically, I from results, now we you And tell the XX-day am this these with to real very supercharge to bringing there to promise some And about will here together. be complementary plans we and later. of merger, and come created And outcomes first that, sites

can to platform together then with you X generate from data unified of the Specifically, both more in this generation we Recursion [ within generalizable. here to our ligand accurate against are And short right, pipeline. massive our powerful, have ] benefits as protein of deploy ADMET, models cellular And order Compute some in [ put Centaur Phenomics you on this months, immediately into quantify the sets the that Centaur OS. and companies all model Recursion about, function, the brought able from together using pipeline ], and binding, a heard of platform that new massive a the to into see liabilities more management more

million example more in XX% of new set ] drug bioactive with detecting the and have new cytotoxic Centaur agents ] new new needed [ of among a on deploying based that useful since set there in another hit accurate starting deconvolution, lead [ example, MOA XX% increase to initiation. [ human scientific a ] in to reduction compounds. reduction for applications. compounds new over X resulted of [ of X models new in Federation admit for ] data get just So time Or to models a XX points potential also That's likely as efficiency X.X-fold groups whole compounds

progress parts. the sum of joint massive So the where already prior the hole seeing now is much than new platform, new a of greater building really

new that, our save going I'm at talk time, exciting we to Taylor, to as about this while Ben doing to hand the off are with it And CFO, all how joint money who's going entity. a same work,

Ben Taylor

looking a we've Thanks, seen us, Lina. year both forward. Yes, as as what as well it's been coming great for together companies

a as combined million So for that's had in an group, ending million. starters, balance a and over basis cash $XXX $XX forma XXXX of we in revenue pro had

XXXX. enough to us gives extend runway able to be that into of a Now

the execute the very closed those So feel An lot be important that model the synergies, to over continuing this expected that we that to on deal, we those of about. $XXX of have, a we business year we got and element get we runway were a to of gave majority Lina will to that Chris be and on comfortable we've we things achieve in just $XXX rate is able to that up that, synergies guidance believe that when actually able we million run million beyond time. a talking

operational the from from companies traditional is coming that X also together the coming both Now a would you that of expect but on more synergies. lot synergies

actually economic us that those of about push translate as all So too, to forward. we talking was for just benefits Lina benefits

operations we [ possibly will organize And both as Vienna can to exciting we operations a the a get. together we great that really of legacy really provide excess continue addition, the our that a as a we office some focus when out into came also that lot In company of and as carved new well track important company. up on clean stand-alone sites previously on, gives company. combined as had and the and have helps mandate to ] much us as we're new note,

basically as in assessment, in going of much are few want of strategic we May. a doing understanding from our up So give bottoms at is right going as months. once a the all a these in-depth we all doing give now well you and to of will through we you What more developments operations to some and that

up coming CCM Now starts we yet. XXXX, signal we're much excited we next technologies the data so year was through as But brought the to there. we initial forward because a that not when say, really developing difference. and really best are CDKX and only pipeline Chris look really, that material to see the would like forward the just year, our look point we as are 'XX, having to Chris show into and

of we'll additional that number a support are have and near that moving in We readouts studies future started have continue could to the that getting forward.

a We that how in actually the was that in most rest is a market as quality forward move we investor this think by even the and it great because deep about. at move of have a quickly that area the is an And to not provide were viewed what don't I candidate example look example market. the we that PIXK people able that well with. normally is we situation of to pipeline believe better is can that is know

as of be to through able talk those So about really coming pipeline more the exciting in future to programs well.

our $XX milestones revenues, million in of Roche. our [indiscernible] Sanofi a payments important in achieving will of Partnerships highlight brought from model. to we be and for really cash part an business that I to part want continue in

from to payment and So technical an license our upfront valued those that is by different extremely goals achieving that's that actually a highly partners. or difficult technology were very

And to both what achieving generating the it flows, but so doing expect continue milestones we do. also technology cash to is validating we those want that

the data platform it forward is how faster, then bring very will it. And moving efficient in being also we benchmarks, how of the more on to continue exceeding does

you so And through the that of course expect can XXXX.

think, We it seriously. together. very I that, of All take comes

and by a It's say doing is and the be underlying means change to want a that's Our what quality biopharma better mandate TecBio, industry, way. actually the of biotech our investors efficient we to medicines creating success we it from more when across probability in just company. is not that

where I'm at look going together it we talk so it Chris we future. and he these come on the because And And going to bigger and all try points can to focused stay how see about of points back these turn in and over the vision. really

Christopher Gibson

or so But just look that, platform. our our shared, potential I our across bit as Yes, XXXX, we pipeline, sort unlocked. anyone we we're than and as be about this many that to able think positioned the value there be to is almost upcoming a longer Ben. extraordinary intermediate And little better even work. term, excited to believe we think of just out different do to Ben beyond partnerships recursion is Thanks, so catalysts

to think about so the bit And share how a talk to of I a want you. I term. vision want we for bit about intermediate little little that

leveraged together And models. can laboratory who building data idea full and of generating we and be the data. the scientists real go have quite in is at That field world world. can We Recursion course, models. into world a are real hypothesize back this leading has the learn using of we've computational that some And today these environment building bringing and been to can This and turn is a what for the models into time. those it been Recursion

they predictions look a They cell. they like about start a make actually look and so virtual the world and This what the positioned then start this to like transposition the to of -- like is idea think model, about become hypothesizing, a in to help is world believe the near biology. world cell transposition predictions well to start good that virtual the that real the models we we more and coming make of -- to the virtual coming, intermediate is us is actually actually where future what of but look cell loop learning --

predictions, algorithms inform shift to the so engages. to taking taking broadly, predictions to that is going field go we going It's data virtual biology, and back allow about we explore this transposition are more biology this us making cell more fundamentally to to make way that and And chemistry there's the think real-world of if instead broadly.

they're there's are of lot capabilities believe of hasn't And our that to realistic biology patient virtual very be generated a we will to a patient real-world AI. At side And data the in. chemistry going required number truly Recursion that data cell and build simulate are macro you layers highly, and can bring model, opportunity that and patients highly Tempus where of leverage different that data and that, underlying clinical a allowing we've AI be these are own And Causal our to country petabytes us partnered of us in from groups our to all the around Helix, do but data although like incredible with of one to and build beyond. trials space, for in those models with tens and data. to

multiple pathway we're we of When hundreds than fit-for-purpose known our to in what millions about I we've levels perturbations biology, continue of of different of in more biology other this think, set [indiscernible]. space, company of there. across start is think going we're the to Recursion, layers generated laboratories lead thinking the We any data this where for,

cutting side ] relatively most edge haven't commoditized. some And protein access is this going to but the sure Of we to make fold to models advanced these, recursion with [ partners of to models, course, that all protein announced see. here are yet and world. of are the in protein working the folding we in this space we it's model many has so There think think be folding and the with groups on alpha other we exciting so

atomistic that This models. step of sort on below [ things QM/MD is is true And of micro ] of the side the the things. X side

Recursion And seeing and here. is But that team on putting us think do I some the kind brought some with that have incorrect. and our in I side. AI legacy that, companies Recursion play a foundations to to lead institutes coming This see atomistic quarters. of a is, compute to Exscientia position really that that And AI to all role. is QM/MD we're never actually of in is said at of going there's potentially I working share together and lot going is exciting with things have What are a can't that we're physics. dramatically think -- this the "Hey, really And will

to when data advantage, working stack truly recursion particular not while I cell. that think able But months, it's be where I across proteins, next is patients, going I distant something across data create put hard all in and keep to those XX atoms, that this very these win you vertical to the integrating don't this competitive to think pathways virtual it's think in is into deliver all it's that's going we're together, we're something of across of do race. And future, a across the going too and to

we've to in. that questions. of now and look I'm beyond, XXXX, dive into go taken little great turn bit we've here Q&A So questions a want got to actually I to XXXX at a our monitor. and coming going maybe And lots

Christopher Gibson

It looks coming the from is Stranahan first question BofA. Alex from like

you and need especially question on Recursion Do well? just a I is has spoken TechBio into the biology continue that scale for DeepSeek scale, the be complex supercomputer risk think about would including past, so but data is Or question. will or bringing to it, the phenotypic that. advances, essential. as for this new in side scale

is interaction look, extraordinarily Alex, question. biology it's biology mean chemistry complex. And is the I complex. Well, and a I of extraordinarily great think

to to train -- it architectures. scale So you deploy that does continue way, did there these are neural hurt bring be to scale to of bring nets latest more can efficient I a generations scale going the is able ways to And not and demonstrate matter. in think models while and that DeepSeek to

going be data think we're that. together. to able going I to be to across data do we're bring different to able all layers these And

bootstrap to is just that complex. somebody And essentially biology too We chemistry. think there's dramatic fundamentally opportunity it think a so don't and we for that

at Vikram, go analysts to we'll Morgan Next, one our of Stanley.

with areas your your focus work? are And foundation your partnership is model what key NVIDIA How progressing? for

Great question, Vikram.

lots to working been So many different is not we've to number models in-house supercomputers of our BioHive-X It one these models, and we with supercomputer just models across been multiple have complex one but on at multiple and a of projects, us being a working that able not to deploy train on many the sites. We're the for different scale, very helping they've teams different different team of years. across two trivial be that recursion. or NVIDIA

using using We're I And side the the side ago. of some atomistic about also GPU do things. just CPU work. that of to just what's moment talked more, we're supercomputer the actually not that a of

So lot and just of deploying that have to all we yet, there's a to be us in complexity of about haven't excited helps we're years tools with to of and There's there. team these share NVIDIA continue in you. the more to lots of able NVIDIA that or work with we'll future talked doing that quarters wait

moving to at Gill Needham. Now over

Given a be how supercomputers still owning offer? moat costs of down, compute your much going on appear to does own

medicines figure Yes, Look, is out think to quickly. biology of to a sufficient compute how there's and that is question. One do it's it. one build this and scale advance not compute. that maps I is And is going Recursion is compute doing great down, the these X and to cost are neither of trivial the data more things necessary at while

reduction in see X, going XXx So years, I a before you reduction, compute. of we a moving to see X, dramatic be but XX virtual to think the cost may cells over we're

be to we access a able world-class years, at over So the think or important that's X for TechBio X next compute. kind have companies of operating at to be moat of we think going least competitive Recursion. for will to And be to it the frontier

we to of It create a advanced potential And sort still is in mature things, matter crisper of much at get time money the that time, side the complex for doesn't cells still for the downstream it and it And cell. advantage effects this the data grow. binomial of or on of to amount takes the so think, do all you how is biology an for possibilities of have side, same a us. time that infinite take biology tree how extreme Because takes would time to test. knockout there's we

cycle we virtuous in where of some years And hypotheses, levels of of almost and be or hypotheses And these so this key. back these go the across think improve anyone or iteration building all make from can in to ahead we those these at scale, validate you going test terms biology. that's and and data else Recursion aggregating think learning is space data different

really that. So we feel really, good about

got Next, questions. some financial we've

So Ben, I'll these more Melissa the about over you. drop you go to turn revenue to can compared QX detail XXXX asks, in XXXX? into

Ben Taylor

Yes. This lot are, we ways, a because question. out causes tech confusion And there of it many a a is great company. in

that revenue show our we However, payment is tech an and recognized earnings time. a don't our revenue then sense of a company. the traditional paid In of upfront in partnerships, up as like often are over longer period

quarterly. in think or payment coming a of subscription that's this can't a So you like

so brought not significant amount $XXX that has in our still fact, recognized been as of from partnerships, million important we've And a revenue.

They will So to to new have partnerships, may not on show go inflows. be immediately revenues. as continue milestones and continue into or those up we enter may or as cash

our track it. based performance revenue, to guide So our quarter-to-quarter we to never suggest and it's hard people that really on really,

Christopher Gibson

A wonderful world of GAAP accounting.

All right.

Jefferies, Ding at who Let's talk expect your for what asks, XXXX this from burn to update? May about year go the expected Dennis we cash and should

Ben Taylor

Sure. question. accounting We've got another complicated

in the transaction, reflect the Exscientia financials closed stand-alone XX-K the actually because our legacy when of So stub legacy of for most piece. period with a Recursion Recursion, financials we the the

balance release the year amount cash the was Exscientia, see difference. put million. in, in end you'll do and tried year we of what for to XX-K the So cash the $XXX and of That burn actually press was starting the

flow means, to from look entities. to the from be Recursion, to general if a get a to over number the perfect cash is little people you're combined not give $XXX at As any CapEx you number well but going as million for and operations clear, that's a by a That the sense.

year, think be burn very I and we we'll detail want but front process, numbers able a to to is going will want don't our more on to burn. to continue very, we cash ourselves. this manage to grow, with are be and focused underneath comfortable are May. we're run you We in cash we budgeting give run but I what those proper

We very come on very, and makes as with it are why. focused that And as on later guidance runway. you up back we'll more what well to

Christopher Gibson

Ben. Thanks, Awesome.

and like CCM Next, on our program. here REC-XXX it got questions This couple looks we've a of is CCM.

met, So our the to REC-XXX at going more Biovantageas was clarification timing [ with commercialization is endpoint the lead program Can comment is that was will that longer-term but to for wondering asks, plans the treatment advance commercialization. of Phillips I safety rationale the What status primary negative efficacy. on ], the significant if it whether you recent on statistically improvements? any moving to Joe to Jeff was regard updates and on And presentation? of REC-XXX? forward beyond there's this for then on

questions here. great So

robust signal to did Jeff's study. this see first, want We of that I not study. really, finding this in across take the idea which we challenge is, question would we year. exciting, I did did efficacy safety So treatment a really But see chronic a

to agency go We're at look any clinical with efficacy. to the first company regulatory a trial to ever CCM

where variety variety wide a trial. of to of at that in give idea so And different of had us endpoints wide subsequent go an we a could secondary look measures, to a

significant, end study a than down you significant And you you necessarily go into parlay don't the but all where for then can so those that p-value somewhat go of you maybe or subsequent study, signal not points, in that endpoints after. narrow X.XX number of power different looking finding findings nearly you a less

across with objective measure was, saw significant I MRI. we data poorly What of think, study a powered nearly this

lesions in ], for lesions. be the in diseases which this to that you modified in really really example, a have of measures, trends the look to this a got standpoint careful showing from in [ this so us give MRS FDA really, Rankin looking able reduction we And whether robust at functional different reduction look that you brainstem a these continuing. And score ], precedence study also be we see into insights looking particular but If soon at long-term these because at will we've [ we'll at saw there's trend extension many then are time. over and neurologic is important Score

number this key you we symptoms And if smaller discussions with be imagine about the endpoints and will quality very a quantity go number lesions significance. may with as endpoints advance a show be program. we improvements of larger in forward so reductions hone to how and of can statistical on positioned that in we to of actually have these And and saw if in regulators patients, same we we the well

post saw finding plan we the I about today, for But signals with disease treatment more details surgery. of on that study to a know this be some we no ones in worth advance exploring this in come to year, with of with the clear extension long-term the maybe Now and back this program. we excited to signal interaction exploration plans will we're our terms data you post some able later and were besides how certainly FDA other

on we've business got Jane And strategy. ] right. [ All S. the

So partnership-based revenue candidates royalty then of company's streams drug companies. suggest with base viable short-term deals revenue between and a split and existing a long-term the pharma

question. So X-part there's a

While any we've expand revenue seen a in beyond plans the diversify and to lot the current are avenues. sources there partnership revenue, of gains

and second here. Ben, part to minute that I'll just actually, a I'll So in one send maybe, take over you then the

Ben Taylor

get in. our partnerships we really out and say revenue of it's We've is work done the certainly interesting. would different to pharma Well, I at internally are What that the streams to excellent. look Sure. come economics

high we're effectively, all we over example, of And at million single, $XXX payments For double-digit cost upfront. royalties. our direct program, have paid low for per milestone looking in

economically a deal. that's so very attractive And

areas, to actually to an exceed of have other sort us we that ROI threshold. into diversify For

look at So pharma that. we the to high do We on there's say the with, on side, expand whether it. continue I'd tech or bar for side a us very ideas. do engage But different partners it's to

Christopher Gibson

Thanks, Ben.

successfully and delayed question the second is leadership revenue. to get the and in longer-term The clinical how viable shelves, our of some clear into trials from SJ tapping the royalty-based confident potentially discover on is drugs ability

able would here. being that molecules strong system just I the developing building been we've system. high learning medicines hard, of my built think a we over very and belief Discovering better better I have is Look, time. is And we're to And probability a has say, but medicines generate confident and

I at on average, to today, level better. generation molecules whatever new we're would each expect of get So

ways to hundreds there important individual of program, it's any Now are note that for can fail. that it

And those be really, can some of really surprising.

more There level individual And to is on certainly you're so stage A, stage. more hard or confidence be the to go when that the stage, faster investing it's are Phase II or in molecule of but C very extraordinarily any we're an Phase we whether preclinical to can't the confident less ones where sort say with advance. asset B likely I

a program create our say is we're the I handful of really company almost our successful can hands. of of typical assets I own in molecule that about the for been that really number and someone is bought where we, with potential. that else's that has Phase a if have some what with in exciting leading company think those number II partnerships But that advances company, a what in both not a biopharma forward And for a has moving partners lot recursion in programs important and bimodal really, trial, that that is you're outcome pipeline

of risk. We're through to to can and platform forward us the as I that is and become bimodal company our starts allow developing remove in discovering but Recursion partnerships, think more scale important we're least and platform that's it our a medicines, if our kind industry the good efficiently programs through believes space. at building to take a a really really, many as one programs pipeline in doing many And going average at higher that

can we're can more if increasing I trying in it industry. or improvement to we the think doing generating build the that at go. to to start truly company not If we're company next demonstrate that more a efficiently, start it success, But potential in we and scale time, has while demonstrate a for transform this I We're think molecules that the decades that in to sell and year to of we're success. decade the with here and this do probability over again, And X. of here probability

And of would course, those our programs so And coming own with royalty-based that develop be our so internal from we in, with revenues revenues pipeline. that in case.

Awesome.

Next, let's go to Gil again from Needham.

in little into payments one. this but I'll Ben you Can a over to add visibility provide one this any XXXX? I'll as well, take milestone Ben something, and maybe Maybe turn

Ben Taylor

any partnerships. I of We're out or right But short in milestones partnerships delivery still come is it we around those say is programs in phenomaps. are of would giving guidance you've Sure. I our think on what both past answer either no. The now. our doing not of seen things the advancing drug

And so more we of the of do look and more same to it.

The advance them and is to is another are on they look and to other thing to Chris own was always we when through. partnerships is thing what advance this at as around a looking time that potentially or right the I alluded would saying, is, note that our program either at

into generate and milestones that's for think I continue and could revenues that that so our something well. to And as we look pipeline

Christopher Gibson

Thanks, Ben.

essentially we've would there been I many things real work and these for doing priming right pump Just add the that quick the milestones. is years partnerships of the couple of a on

while to, not was in to, in of I we're there's where And I we're our going. giving individual guidance a lot we're our just of formal any as are this interest think, get alluding that clinical Ben for some year, pipeline. so in think preclinical assets or lot a starting also And of confidence

that credentialization And is to of start the that going and able to platform again, of be we're future pipeline generating we'll revenue, different so ways hopefully, generating demonstrate, recursion subsidization the build. to

from first going to Lina. so question turn actually I'm over Marcel. to one Next, this this

by while JPMorgan is including clinical a a us medicines to conference, and time weeks simulate enable Marcel, at goal while scale, discover trials. flies, able virtual we ago to this at of ago, develop the few be creating mentioned ago to potentially the a to So cells and

limited, virtual Given And trials of are where data reliability particularly also in might inaccuracies, concerns be the the regarding how rare virtual validate trials these drug you could that to from their to cell LLM, known results would in prone space, the accuracy? be interactions. disease there ensure and hallucinations issue generated

Lina Nilsson

powers Yes, different about rely, limitations and so addition you different positives recursion of Great hallucinations transformers, accurate sometimes question. power and these liabilities able also be are unique And you ] in lots might the [ LLMs, if Machine Learning on to and field. And read in and We [indiscernible] architecture to other that come to course, with more both model great on. get false architectures, of sure. deeply and predictions. have in

in branch to capability big our build ensure we that those performing marking to our models. benchmarking that models hands So with to we are sets the are highest data able do

can insights really a think models. I here we of is have out where that setups, large important come vivo et that addition, we in In great component these validate cetera, setups, laboratory

we're to never to experimental to we're So down validating the that is that Chris' assays able back incredibly going we're going harking so were most doing, insights promising focus the can that not at [ were our right and promising compounds the assays that the really ] that exactly most point, it's we and anything experiment to play in go and insights money to matters real not be comprehensive spend in time on most it compounds, never where ones. be anywhere

gets And validation the so this drug we're way into still before important incredible doing along a put patients.

around model can And just one so are understand is human we the that all mentioned. and into broad health everything about for models example, rare patient models other the way atomistic context sets indices at that at level the building in performance but that are our in just specific with not and validate to "rare" disease including the bring focused the one of this Chris gene, one data way local predicting of just component then but that challenge that biology to course, have data and in is cell areas all diseases, massive through Phenomics but that And specific the a a that that going protein Helix gene can but else Tempus, is through in data linking that and context of and about on definitely, specifically in that And confidence for complexity not for are as industry this not Recursion whole. patient.

Christopher Gibson

So or a to little it as us you what relates you, from Needham creating convince cell that a Lina. environment, adding something that on reached productive? to would virtual -- bit asks, thank we've that Gill

to don't over a going this this a flipping a to a that we're a really going is data think the all be going [ gradient switch handful to great sudden therapeutic industry. team of is benchmarking helping models benchmarks. is ] is our against commons, a so And focused of and achieve our be next We've Gil, And on and And benchmarking we initiative the productive predictive which from lead to years. Polaris ad Valence the reality the of it's across I is, question. us productive, done not lot

we're starting report and sense of cusp to will have of like which a we virtual the moving to or If be questions that predictive the were And at just give me that of of reduction the into scale moving the is in us or from that different ] validating we're And data and from when broader all future on many I a trial what you sort be models It to for models cell. has start that action think we place I happened. ADMET towards a we'll deconvolution And us would transposition looking have just the that were generating. give insights really simulation we mechanism feel that [ really of to be in into answer would imagine layers predictions. across help that emergent point biology. ask features that these clinical data

simulated number kind of We've data a last to up modalities. over doing experiments million other numbers cell. know you we're have start million week. experiments years, done we're when Phenomics pipeline. because still X.X that we're and virtual So building you'll of X.X to a that Transcriptomics When to we're X.X those the just validating we the see down go build That's purposefully outputs continuing

Perfect.

or from impact here in NIH there one question about might changes our NIH that and more ability develop asking was discover think Recursion whether direction medicines. the Laura I is funding to going funding and

of my And that led of some research able years Recursion. term, the early in building research is I what Dean, would that with school days early I my to was co-founder, recursion in funding, short bring work build that on the we ROX-funded mean, graduate both no. to in million that in business NIH dependent Recursion, us was the small helped ideas grants innovative but the were $X.X also in about say

means space about not of other that who worry may the in start-ups those us. be for funds what and to environment do I the able access around some

NIH bringing as that building Lake that incubator of at may fun help and have be to really a bridge number other aimed funded exciting perhaps by our announced you companies entrepreneurs Altitude in a that Labs so grow by included anchoring Salt Laura, build City that off space to funding gap. incubator in And is myself are in disruption Recursion, entrepreneurs seen, is [ this ] the we of the to that them impacted might and called

on industry I very that of Postdocs are some it's doing started institutions and admissions, and see We though, broadly, the that PhD do more walls, bit number of companies group incredible academia. student the concerning. little are comes our Postdoc a while companies and student a within Speaking think their out of have graduate all grad in deferring reliant

come to that. am funding really the world most concerned if that there's for here shift side and of a we're don't to see reason the to pretty train these cuts on remedy to we start quickly. going NIH some lead. lose, I could U.S. it's the very or some these years, wants Remember, substantial over cuts, of don't of XX remedy if XX so And we

So great with that.

hope radically us decoding the I call. think to and have joining excited to for Thank you to building move improve we're an day. much. here, you future on so decide probably We're Learnings Thank really amazing be towards biology all you, everybody, lives to going here. for

Recursion Pharmaceuticals (RXRX) 28 Feb 252024 Q4 Earnings call transcript