RECURSION PHARMACEUTICALS, INC. Q1 FY2025 earnings call

Chris Gibson introduced Recursion's mission to decode biology and improve lives, discussing the evolution of the Recursion Operating System from 0.1 to 2.0, including the combination with Exscientia. Najat Khan then detailed the pipeline updates, including go - forward programs like CDK7, RBM39 degrader, MALT1 inhibitor, PI3K program, FAP program, ENPP1 program; programs being deprioritized such as NF2, CCM, C.diff; and the strategic pause of LSD1. She also highlighted the go - forward portfolio strategy grounded in scientific rigor and disciplined capital allocation, and the catalyst slides showing upcoming readouts and milestones in 2025 - 2026 for internal and partnered programs. Additionally, she discussed deep dives into FAP, PI3K, and ENPP1 programs, as well as partnership updates with Sanofi and Roche.

Anticipate meaningful readouts and catalysts across internal pipeline in 2025 - 2026. First half of 2025: initiation of combination study in advanced tumors for CDK7, additional Phase 1 data for CDK7. Second half of 2025: additional FAP patients enrolling, development candidate nomination for PI3K. First half of 2026: early safety NPK data readout for RBM39 program. Second half of 2026: early safety NPK update for B cell malignancies program, Phase 1 initiation for ENPP1 inhibitor. Also, partnership catalysts with new phenomap options, program initiations, and potential options exercised by partners.

Challenging macroeconomic environment which may impact decision - making; risk of programs not meeting development marks or not achieving expected efficacy; uncertainty in regulatory updates and their impact on development timelines and strategies.

Q: If we contextualize the use of AI in clinical development, like for study design and maybe how that's relevant for programs like RBM39?

A: Najat Khan said for programs like RBM39, AI is used in clinical development for aspects like determining which indications to go after, enriching biomarkers for patient populations, ensuring predictive signal - to - noise, and also in enrollment, recruitment, and using real - world data for decision - making.

Q: What criteria were used to prioritize certain programs over others, and how does this focus advance or align with Recursion's long - term strategic objectives?

A: Najat Khan said criteria include potential value of the drug, patient population, unmet need, scientific data, development plan, and risk. This focus aligns with Recursion's long - term strategic objectives of scientific rigor, disciplined capital allocation, and deploying the platform to create differentiated medicines serving unmet needs.

Q: Do you expect any meaningful impact to your internal partnership strategy in light of the FDA's updated animal testing guidance?

A: Chris Gibson said Recursion was built for an evolving regulatory framework and is positioned to take advantage of the FDA's updated animal testing guidance, with its discovery, predictive, and in vivo platforms generating large - scale data sets and building foundation models to move from test - at - scale to predict - and - validate regimes, thus likely leading in this space going forward.