RECURSION PHARMACEUTICALS, INC. Q2 FY2024 earnings call

• Combination of Recursion and Exscientia: Complementary factors include a pipeline of nearly 10 readouts in the clinic over 18 months, complementary partnerships with large companies like Roche, Genentech, Bayer, Sanofi, Merck, and KGA, and combined platforms focused on biology, hit discovery, target discovery (Recursion) and precision chemistry (Exscientia). • Pipeline: About 10 clinical and near-clinical readouts in next 18 months, with complementarity across therapeutic areas such as oncology, rare disease, infectious disease, and immunology. • Partnerships: Recursion has partnerships with Roche, Genentech, Bayer; Exscientia with Sanofi, Merck, KGA; potential for ~$200M in milestones over 2 years and over $20B in milestones from partnerships before royalties. • Platforms: Recursion's biology-focused platform and Exscientia's precision chemistry platform with automated synthesis, combining to form an end-to-end solution. • Transaction details: Exscientia shareholders to receive 0.7729 shares of Recursion Class A common stock per Exscientia share if deal closes; combined cash at end of Q2 ~$850M, runway into 2027. • Recent updates: Roche/Genentech optioned first neuromap, partnership with Bayer on track to complete 25 data packages by end of Q3, REC-994 data readout in September for CCM.

No specific product segment financial performance data provided in the transcript.

• Combined entity has ~$850M cash, with runway into 2027. • Potential for ~$200M in milestones over next 2 years from 10 programs, and over $20B in milestones from partnerships before royalties. • Expect transaction to close by early 2025, subject to shareholder approval.

Q: Even though there is no competitive overlap, is there anything to be learned from each other's internal pipelines that can allow you to accelerate the advancements of your programs regarding the Exscientia business combination?

A: Dave Hallett mentions combination of data from Recursion's large datasets and competence to benefit programs; Najat Khan talks about leveraging CDK7 program insights with Recursion's Tempus partnership for patient stratification.

Q: Following Recursion's acquisition of Cyclica and Valence in 2023, what is the vision to integrate Exscientia and GenAI capabilities in the new company?

A: Najat Khan discusses integrating Exscientia's generative AI for molecular design into Recursion's processes, modular platform integration, and leveraging phenomics/multiomics data.

Q: How do you plan to leverage Exscientia's automated laboratories?

A: Chris Gibson talks about Exscientia's state-of-the-art automated synthesis platform integrating active learning and machine learning, combining with Recursion's biology platform.

Q: What do you see as the bar for efficacy in the upcoming SYCAMORE readout in CCM?

A: Najat Khan discusses safety/tolerability as primary endpoint, with MRI-based endpoints, PROs (CCM health index), and biomarkers as secondary areas.

Q: The biggest bottleneck in drug development is clinical trial process. What's your vision for this part of the platform?

A: Najat Khan talks about using multimodal data for clinical trial design to reduce protocol amendments, and innovative trial operations like using rural data and machine learning for faster recruitment.

Q: Could you share more on potential or ongoing efforts to use platform for preventative healthcare?

A: Chris Gibson discusses Recursion's programs targeting genetic predispositions to cancer and potential in neuroscience, leveraging biology maps for understanding complex biological interplay.