RXRX Recursion Pharmaceuticals Inc.

18.91
+0.11  (+1%)
Previous Close 18.8
Open 18.46
52 Week Low 15.25
52 Week High 42.81
Market Cap $3,195,659,010
Shares 168,993,073
Float 116,065,642
Enterprise Value $2,603,779,772
Volume 1,043,813
Av. Daily Volume 1,048,638
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Drug Pipeline

Drug Stage Notes
REC-4881
Familial Adenomatous Polyposis
Phase 2
Phase 2
Phase 2 trial to be initiated in 1H 2022.
REC-994
Cerebral Cavernous Malformation
Phase 2
Phase 2
Phase 2 trial to be initiated in early 2022.
REC-2282
Neurofibromatosis Type 2
Phase 2/3
Phase 2/3
Phase 2/3 trial to be initiated in early 2022.
REC-3599
GM2 Gangliosidosis
Phase 2
Phase 2
Phase 2 trial to be initiated in 1H 2022.

Latest News

  1. SALT LAKE CITY, Nov. 10, 2021 /PRNewswire/ -- Recursion (NASDAQ:RXRX), a clinical-stage biotechnology company decoding biology by integrating technological innovations across biology, chemistry, automation, data science and engineering, today reported business updates and financial results for its third quarter ending September 30, 2021.

    "In Q3, our team made progress towards our vision to industrialize drug discovery. We are now harvesting the efforts of the past few years to build a map of human cellular biology through the continued refinement and increased usage of our inference-based approach to drug discovery. With the power of our Recursion Map illuminating new and exciting relationships in biology, we are now deeply focused on extending…

    SALT LAKE CITY, Nov. 10, 2021 /PRNewswire/ -- Recursion (NASDAQ:RXRX), a clinical-stage biotechnology company decoding biology by integrating technological innovations across biology, chemistry, automation, data science and engineering, today reported business updates and financial results for its third quarter ending September 30, 2021.

    "In Q3, our team made progress towards our vision to industrialize drug discovery. We are now harvesting the efforts of the past few years to build a map of human cellular biology through the continued refinement and increased usage of our inference-based approach to drug discovery. With the power of our Recursion Map illuminating new and exciting relationships in biology, we are now deeply focused on extending our chemistry capabilities to significantly improve, scale and speed up new chemical entity development to address the plethora of novel biological relationships we are discovering," said Recursion Co-Founder & CEO Chris Gibson, Ph.D. "In addition, our rapidly growing development team is preparing for our four clinical-stage programs to initiate Phase 2 or Phase 2/3 studies in the first half of 2022, including two of the programs that we expect will enroll their first patients in early 2022. To facilitate our broad ambition, we continue to rapidly grow our workforce while nurturing Recursion's culture and community."

    Recursion finished the third quarter of 2021 with a portfolio of 4 clinical stage programs, 4 preclinical programs, 7 late discovery programs, and 41 early discovery programs. Additionally, Recursion continued scaling the total number of executed phenomic experiments to approximately 95 million, the size of its proprietary data universe to over 11 petabytes, and the number of biological inferences to approximately 200 billion. Data have been generated on the Recursion OS across 38 human cell types, an in-house chemical library of over 717 thousand compounds, and an in silico library of 12 billion small molecules, by a growing team of more than 330 Recursionauts that is balanced between life scientists and computational and technical experts.

    Recursion finished the third quarter of 2021 with a portfolio of 4 clinical stage programs, 4 preclinical programs, 7 late discovery programs, and 41 early discovery programs.

    Summary of Business Highlights

    • Clinical Programs
      • Neurofibromatosis type 2 (NF2) (REC-2282): In early October we received Fast Track Designation for REC-2282 from the FDA for the potential treatment of NF2 meningiomas. We plan to initiate a parallel group, two stage, Phase 2/3, randomized, multicenter study in early 2022.
      • Cerebral cavernous malformation (CCM) (REC-994): We plan to initiate a Phase 2, double-blind, placebo-controlled safety, tolerability and exploratory efficacy study of this candidate in early 2022.
      • Familial adenomatous polyposis (FAP) (REC-4881): In September we received Orphan Drug Designation for REC-4881 from the FDA for the potential treatment of Familial Adenomatous Polyposis. We plan to initiate a Phase 2, randomized, double-blind, placebo-controlled study to evaluate safety, pharmacokinetics and efficacy in the first half of 2022.
      • GM2 gangliosidosis (REC-3599): We plan to initiate a Phase 2 study of this candidate in the first half of 2022.
    • Preclinical Programs
      • Clostridium difficile colitis (REC-3964): We expanded our medicinal chemistry team and digital chemistry tools and made progress in IND-enabling studies for REC-3964, which is the most advanced New Chemical Entity developed by the Recursion OS.
    • Bayer AG Partnership: We continue to advance our collaboration with Bayer to discover small molecule drug candidates with the potential to treat fibrotic diseases. We have multiple programs progressing simultaneously with our partner.
    • Recursion OS
      • Biological Contexts: We advanced our capabilities to model diseases in multiple biological contexts, including new types of biological perturbations beyond CRISPR-based knockouts, complex cell type onboarding, and organoid model systems. Moreover, we made progress on multiple maps in iPSC-derived neural cell types.
      • Mechanisms of Action: We improved our computational methods to identify mechanisms of action and used this technology to increase our ability to screen out compounds with potentially toxic effects for multiple programs earlier than is possible with traditional approaches. We believe that such methods will better enable us to advance the most promising novel chemical compounds through discovery.
      • Transcriptomics Validation: We made significant improvements to our transcriptomics protocols to enable increases in throughput. Additionally, we have been optimizing our ability to use transcriptomics signatures for compound characterization.
    • Facilities and Manufacturing: We continued to make progress in expanding our current headquarters and creating a chemistry, manufacturing and controls (CMC) site in Salt Lake City. These spaces are designed with flexibility in mind to enable next-generation automated workflows and instruments for compound, tissue culture, and biobank management to further industrialize the drug discovery and development process.

    Third Quarter 2021 Financial Results

    • Cash Position: Cash, cash equivalents, and investments were $578.9 million as of September 30, 2021.
    • Revenue: Total revenue, consisting primarily of revenue from collaborative agreements, was $2.5 million for the third quarter of 2021, compared to $1.0 million for the third quarter of 2020. The increase was due to revenue recognized from our collaboration with Bayer.
    • Research and Development Expenses: Research and development expenses were $33.2 million for the third quarter of 2021, compared to $16.5 million for the third quarter of 2020. The increase in research and development expenses was primarily due to an increased number of experiments run on the Recursion OS, an increased number of assets being validated, and increased clinical costs as studies progressed.
    • General and Administrative Expenses: General and administrative expenses were $15.7 million for the third quarter of 2021, compared to $7.0 million for the third quarter of 2020. The increase in general and administrative expenses was due to the growth in size of the company's operations, including an increase in salaries and wages of $3.7 million, equipment costs, human resources-related costs, facilities costs, and other administrative costs associated with operating a high-growth company.
    • Net Loss: Net loss was $47.4 million for the third quarter of 2021, compared to a net loss of $23.9 million for the third quarter of 2020.

    Additional Corporate Updates

    • Operations in Canada: Jordan Christensen joined Recursion as Vice President, Engineering and also became our Toronto Site Lead. Additionally, we opened our Montreal office and hired multiple machine learning research scientists.
    • Translational Biology: Alison O'Mahony, Ph.D., joined Recursion as Vice President, Discovery Platform and will be responsible for continued scaling and improvement of Recursion's orthogonal validation and bespoke validation assays to continue driving down the time from initial discovery to clinical development. Dr. O'Mahony previously served as Vice President, Translational Biology at Eurofins Discovery.
    • Information Security: Ganesh Jagannathan joined Recursion as Chief Information Security Officer & Vice President, Information Technology and will be responsible for all strategic, innovative and operational aspects of Information Security and Information Technology. Mr. Jagannathan previously served as Chief Information Security Officer at Jazz Pharmaceuticals.
    • CEO Rule 10b5-1 Plans: Chris Gibson, Ph.D., the company's Co-Founder and CEO, established personal stock trading plans in the second quarter of 2021 in accordance with Rule 10b5-1 under the Securities and Exchange Act of 1934 and Recursion's insider trading policy. Under the plans, all outstanding stock options may be exercised and we anticipate shares representing up to approximately 4% of Dr. Gibson's holdings may be sold or transferred to donor-advised philanthropic funds. We anticipate the Rule 10b5-1 transactions may take place over the next 13 months. Any such transactions will be disclosed through public filings as required by the SEC.

    About Recursion

    Recursion is a clinical-stage biotechnology company decoding biology by integrating technological innovations across biology, chemistry, automation, machine learning and engineering. Our goal is to radically improve the lives of patients and industrialize drug discovery. Central to our mission is the Recursion Operating System, which combines an advanced infrastructure layer to generate what we believe is one of the world's largest and fastest-growing proprietary biological and chemical datasets. We combine that with the Recursion Map, a suite of custom software, algorithms, and machine learning tools that we use to explore foundational biology unconstrained by human bias and navigate to new biological insights. We are a biotechnology company scaling more like a technology company. Learn more at www.Recursion.com, or connect on Twitter and LinkedIn. Recursion is also a founding member of BioHive, the Utah life sciences industry collective.

    Contact

    Elyse Freeman - Senior Communications and Content Manager

     

    Condensed Consolidated Statements of Operations

    Recursion Pharmaceuticals, Inc. 

    Condensed Consolidated Statements of Operations (unaudited)

    (in thousands, except share and per share amounts) 







    Three months ended



    Nine months ended





    September 30,



    September 30,

    Revenue

    2021

    2020



    2021

    2020



    Grant revenue

    $                   34

    $                  163



    $                  145

    $                  409



    Operating revenue

    2,500

    862



    7,500

    862

    Total revenue

    2,534

    1,025



    7,645

    1,271















    Operating expenses













    Research and development

    33,246

    16,535



    86,979

    42,621



    General and administrative

    15,690

    6,964



    38,481

    17,684

    Total operating expenses

    48,936

    23,499



    125,460

    60,305















    Loss from operations

    (46,402)

    (22,474)



    (117,815)

    (59,034)



    Other loss, net

    (1,026)

    (1,399)



    (3,731)

    (2,206)

    Net loss

    $            (47,428)

    $            (23,873)



    $          (121,546)

    $            (61,240)















    Per share data











    Net loss per share of Class A and B common stock, basic and diluted

    $               (0.28)

    $               (1.09)



    $               (1.10)

    $               (2.82)

    Weighted average shares (Class A and B) outstanding, basic and diluted

    168,533,550

    21,817,900



    110,513,231

    21,704,008

     

    Condensed Consolidated Balance Sheets

    Recursion Pharmaceuticals, Inc. 

    Condensed Consolidated Balance Sheets (unaudited)

    (in thousands)













    September 30,

    December 31,





    2021

    2020

    Assets







    Current assets







    Cash and cash equivalents

    $         394,721

    $         262,126



    Restricted cash

    10,233

    5,041



    Accounts receivable

    34

    156



    Other receivables

    2,248

    -



    Investments

    184,189

    -



    Other current assets

    9,445

    2,155



    Total current assets

    600,870

    269,478











    Property and equipment, net

    55,439

    25,967



    Intangible assets, net

    2,262

    2,490



    Other non-current assets

    35

    650



    Total assets

    $         658,606

    $         298,585









    Liabilities, convertible preferred stock and stockholders' equity (deficit)







    Current liabilities







    Accounts payable

    $             6,326

    $             1,074



    Accrued expenses and other liabilities

    25,113

    10,485



    Current portion of unearned revenue

    10,000

    10,000



    Current portion of notes payable

    88

    1,073



    Current portion of lease incentive obligation

    1,416

    467



    Total current liabilities

    42,943

    23,099











    Deferred rent

    3,348

    2,674



    Unearned revenue, net of current portion

    9,167

    16,667



    Notes payable, net of current portion

    656

    11,414



    Lease incentive obligation, net of current portion

    3,460

    2,708



    Total liabilities

    59,574

    56,562











    Commitments and contingencies















    Convertible preferred stock

    -

    448,312



    Stockholders' equity (deficit)







    Common stock (Class A and B)

    2

    -



    Additional paid-in capital

    934,175

    7,312



    Accumulated deficit

    (335,147)

    (213,601)



    Accumulated other comprehensive income

    2

    -



    Total stockholder's equity (deficit)

    599,032

    (206,289)











    Total liabilities, convertible preferred stock and stockholders' equity (deficit)

    $         658,606

    $         298,585

     

    Forward-Looking Statements

    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 mission; early and late stage discovery, preclinical, and clinical programs; collaborations; prospective products and their future indications and market opportunities; Recursion OS and other technologies; expansion of facilities and expected uses; workforce growth; employee stock trading plans; business and financial 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 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; the impact of the COVID-19 pandemic; 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; and other risks and uncertainties described under the heading "Risk Factors" in our filings with the U.S. Securities and Exchange Commission, including our most recent Quarterly Report 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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  2. SALT LAKE CITY, Oct. 7, 2021 /PRNewswire/ -- Recursion (NASDAQ:RXRX), a clinical-stage biotechnology company decoding biology by integrating technological innovations across biology, chemistry, automation, machine learning and engineering, today announced that the U.S. Food and Drug Administration (FDA) has granted the company Fast Track designation for the investigation of REC-2282 for treatment of patients with NF2-mutated meningiomas, including neurofibromatosis type-2 disease-related meningiomas. REC-2282 is a potentially first-in-class, orally bioavailable, CNS-penetrant small molecule HDAC inhibitor being developed for the treatment of NF2-mutated meningiomas.

    SALT LAKE CITY, Oct. 7, 2021 /PRNewswire/ -- Recursion (NASDAQ:RXRX), a clinical-stage biotechnology company decoding biology by integrating technological innovations across biology, chemistry, automation, machine learning and engineering, today announced that the U.S. Food and Drug Administration (FDA) has granted the company Fast Track designation for the investigation of REC-2282 for treatment of patients with NF2-mutated meningiomas, including neurofibromatosis type-2 disease-related meningiomas. REC-2282 is a potentially first-in-class, orally bioavailable, CNS-penetrant small molecule HDAC inhibitor being developed for the treatment of NF2-mutated meningiomas.

    The FDA's Fast Track designation was established to expedite the review of investigational drugs to treat serious conditions and address unmet medical needs by enabling important drugs to get to patients earlier if approved. Fast Track designation can lead to more frequent interactions with the FDA, as well as Accelerated Approval and/or Priority Review eligibility if certain criteria are met.

    "The Fast Track designation for REC-2282 is an important addition to our work to develop this medicine to treat patients with neurofibromatosis type-2 and patients with sporadic meningiomas driven by mutations in the NF2 gene, for which there is a significant unmet need," said Recursion Chief Medical Officer Ramona Doyle, M.D. "I am pleased that the team continues to advance this important medicine towards a Phase 2/3, randomized, multi-center study in patients with NF2-mutated meningiomas, for which we expect to begin enrollment early next year."

    Meningiomas are primary tumors of the meninges of the central nervous system. More than 34,000 patients are diagnosed with sporadic meningiomas in the US each year. In patients with progressive meningiomas, more than a third are driven by mutations in the gene NF2. NF2-mutated meningiomas are typically treated with surgery and radiotherapy or with off-label therapies of limited or unproven efficacy. The lack of approved therapies to prevent progression of NF2-mutated meningiomas, which are frequently an aggressive tumor type, represents a significant unmet medical need. In addition, the syndrome neurofibromatosis type-2, which is associated with both sporadic and autosomal dominant inherited mutations in the NF2 gene, gives rise to meningiomas in approximately half of neurofibromatosis type-2 patients. In the US and EU5, neurofibromatosis type-2 affects approximately 33,000 patients and there are no approved therapies.

    Learn more about Recursion and view its pipeline at Recursion.com/pipeline.

    About Recursion

    Recursion is a clinical-stage biotechnology company decoding biology by integrating technological innovations across biology, chemistry, automation, machine learning and engineering. Our goal is to radically improve the lives of patients and industrialize drug discovery. Central to our mission is the Recursion Operating System, which combines an advanced infrastructure layer to generate what we believe is one of the world's largest and fastest-growing proprietary biological and chemical datasets. We combine that with the Recursion Map, a suite of custom software, algorithms and machine learning tools that we use to explore foundational biology unconstrained by human bias and navigate to new biological insights. Learn more at www.Recursion.com, or connect on Twitter and LinkedIn.

    Press Contact

    Elyse Freeman - Senior Communications and Content Manager

    Investor Relations Contact

    Forward-Looking Statements

    This press release contains information that includes or is based upon "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. Forward-looking statements provide our expectations or forecasts regarding future events. You can identify these statements by the fact they do not relate strictly to historical or current facts. They may use words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," and other terms of similar meaning in connection with a discussion of future operating or financial performance. In particular, forward-looking statements include statements relating to intended future actions; plans with respect to clinical trials and preclinical activities; prospective products or product approvals; future performance or results of anticipated products or technology; expenses; our ability to obtain, maintain and enforce intellectual property protections; and financial results, in addition to other topics. Any or all of our forward-looking statements here and elsewhere may turn out to be wrong. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statements and from expected or historical results. Many such factors will be important in determining our actual future results. Consequently, no forward-looking statement can be guaranteed. In particular, you should read the discussion in the "Risk Factors" section in our Prospectus filed with the U.S. Securities and Exchange Commission (SEC) on April 16, 2021 and in our periodic filings with the SEC. Other factors besides those listed could also adversely affect the company. We undertake no obligation to correct or update any forward-looking statements, whether as a result of new information, future developments or otherwise, except to the extent required by applicable law. These forward-looking statements (except as may be otherwise noted) speak only as of the date of this press release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. You are advised to consult any further disclosures we make on related subjects in our reports to the SEC.

     

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    SOURCE Recursion

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  3. BioHive, Utah's collective of life sciences and healthcare innovation companies, today announced that Katelin Roberts will serve as the full time Executive Director, effective immediately. Roberts has been serving as interim Executive Director since the launch of BioHive last year. BioHive's mission is to brand, build and bring together Utah's robust and growing life sciences industry.

    This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20211004005357/en/

    BioHive, with a mission to brand, build and bring together Utah's robust and growing life sciences industry, names Katelin Roberts Executive Director. (Photo: Business Wire)

    BioHive, with a mission to brand, build and bring together Utah's robust and growing life sciences industry, names Katelin Roberts Executive Director. (Photo: Business Wire)

    Roberts brings a broad range of leadership experience in the life…

    BioHive, Utah's collective of life sciences and healthcare innovation companies, today announced that Katelin Roberts will serve as the full time Executive Director, effective immediately. Roberts has been serving as interim Executive Director since the launch of BioHive last year. BioHive's mission is to brand, build and bring together Utah's robust and growing life sciences industry.

    This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20211004005357/en/

    BioHive, with a mission to brand, build and bring together Utah's robust and growing life sciences industry, names Katelin Roberts Executive Director. (Photo: Business Wire)

    BioHive, with a mission to brand, build and bring together Utah's robust and growing life sciences industry, names Katelin Roberts Executive Director. (Photo: Business Wire)

    Roberts brings a broad range of leadership experience in the life sciences from operations and manufacturing to investing. Most recently, she served as Chief Executive Officer of Line Logic, a company with an innovative catheter stabilization device on the market. Roberts is also a partner with MedMountain Ventures where she will stay on in a non-operating investing role.

    Chris Gibson, Co-Founder and CEO of Recursion (NASDAQ:RXRX) and Founding Chairman of BioHive said, "What is happening in the BioHive is so exciting and I am tremendously excited that we will now have Katelin's full attention focused on telling our story, bringing together the life sciences community here in Utah and building up the future of this great hub. Katelin is an excellent leader and I know I speak for the broader community when I say that we are all excited to get to work alongside her."

    "I am thrilled to take on this role and work more closely with our industry, it's employees and the patients we serve," Roberts said. "Utah has transformative science and technology, and BioHive will be the leader for accelerating life sciences by highlighting our successes and connecting people, talent and capital. Our secret sauce in Utah is our community, and we have the right partners supporting BioHive. If you work in this industry or you support the industry, you're already a member of BioHive and the work you are doing is important and valuable."

    BioHive is a chartered organization of BioUtah, Utah's trade organization for the life sciences. Kelvyn Cullimore, CEO and President of BioUtah added "BioUtah strongly supports the mission of BioHive as they tackle initiatives to brand, build and coalesce our ecosystem. We look forward to collaborating to sponsor events and promotions to strengthen and improve our community. I've worked with Katelin over the last year and know of her excellent skill sets and passion for shining a bright light on the successes of the life sciences industry in Utah."

    About BioHive

    BioHive is a thriving collective of more than 1,100 companies representing the life sciences and healthcare innovation ecosystem of Utah's economy. We embrace diversity and promote collaboration. BioHive includes researchers, developers and manufacturers of therapeutics, devices and diagnostics, as well as laboratory facilities, healthcare delivery systems, digital health, health IT and supply-chain businesses that support these industries. We've been the fastest-growing life sciences community in America since 2012, employing 43,000 people directly and 88,000 indirectly, for a total of more than 130,000. Empowered by this rich talent pool, BioHive is leading the way with crucial innovations that boost our state's economy and help patients around the globe.

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  4. SALT LAKE CITY, Sept. 29, 2021 /PRNewswire/ -- Recursion (NASDAQ:RXRX), a clinical-stage biotechnology company decoding biology by integrating technological innovations across biology, chemistry, automation, machine learning and engineering, today announced that the U.S. Food and Drug Administration (FDA) has granted the company orphan drug designation for REC-4881 for the potential treatment of familial adenomatous polyposis (FAP). REC-4881 is an orally bioavailable, non-ATP-competitive allosteric small molecule inhibitor of MEK1 and MEK2 being developed to reduce tumor size in FAP patients.  

    The FDA designates orphan products to support the development and evaluation of new treatments for rare diseases. The designation qualifies the sponsor for incentives including tax credits for qualified clinical trials, exemption from user fees and potentially seven years of market exclusivity if the medicine is approved. 

    "The orphan drug designation for REC-4881 is an important addition to our work to develop this medicine to treat patients with FAP, for which there is significant unmet need," said Ramona Doyle, M.D. chief medical officer of Recursion. "I am pleased that the team continues to advance this medicine towards a Phase 2, randomized, double-blind, placebo-controlled study to evaluate safety, pharmacokinetics and efficacy in FAP patients, for which we expect to begin enrolling patients within the next three quarters." 

    FAP is a rare tumor syndrome with no approved therapies. In the US, France, Germany, Italy, Spain and the UK alone the disease affects approximately 50,000 patients. FAP is caused by autosomal dominant inactivating mutations in the tumor suppressor gene APC. FAP patients develop polyps and adenomas in the gastrointestinal tract throughout life. These growths have a high risk of malignant transformation and can give rise to invasive cancers of the colon, stomach, duodenum and rectal tissues. Standard of care for patients with FAP is colectomy, and without surgical intervention, affected patients will progress to colorectal cancer in adulthood. Post-colectomy, patients receive endoscopic surveillance every 6-12 months to monitor disease progression. While surgical management and surveillance have improved the prognosis for FAP patients, duodenal and desmoid tumors remain a major cause of death in patients with FAP following colectomy.

    Learn more about Recursion and view its pipeline at Recursion.com/pipeline.

    About Recursion

    Recursion is a clinical-stage biotechnology company decoding biology by integrating technological innovations across biology, chemistry, automation, machine learning and engineering. Our goal is to radically improve the lives of patients and industrialize drug discovery. Central to our mission is the Recursion Operating System, which combines an advanced infrastructure layer to generate what we believe is one of the world's largest and fastest-growing proprietary biological and chemical datasets. We combine that with the Recursion Map, a suite of custom software, algorithms and machine learning tools that we use to explore foundational biology unconstrained by human bias and navigate to new biological insights. Learn more at www.Recursion.com, or connect on Twitter and LinkedIn.

    Press Contact

    Elyse Freeman - Senior Communications and Content Manager

    Investor Relations Contact

    Forward-Looking Statements

    This press release contains information that includes or is based upon "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. Forward-looking statements provide our expectations or forecasts regarding future events. You can identify these statements by the fact they do not relate strictly to historical or current facts. They may use words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," and other terms of similar meaning in connection with a discussion of future operating or financial performance. In particular, forward-looking statements include statements relating to intended future actions; plans with respect to clinical trials and preclinical activities; prospective products or product approvals; future performance or results of anticipated products or technology; expenses; our ability to obtain, maintain and enforce intellectual property protections and financial results; in addition to other topics. Any or all of our forward-looking statements here or elsewhere may turn out to be wrong. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statements and from expected or historical results. Many such factors will be important in determining our actual future results. Consequently, no forward-looking statement can be guaranteed. In particular, you should read the discussion in the "Risk Factors" section in our Prospectus filed with the U.S. Securities and Exchange Commission (SEC) on April 16, 2021 and in our periodic filings with the SEC. Other factors besides those listed could also adversely affect the company. We undertake no obligation to correct or update any forward-looking statements, whether as a result of new information, future developments or otherwise, except to the extent required by applicable law. These forward-looking statements (except as may be otherwise noted) speak only as of the date of this press release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. You are advised to consult any further disclosures we make on related subjects in our reports to the SEC.

     

    Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/recursion-is-granted-orphan-drug-designation-for-rec-4881-for-the-potential-treatment-of-familial-adenomatous-polyposis-301387590.html

    SOURCE Recursion

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  5. SALT LAKE CITY, Aug. 13, 2021 /PRNewswire/ -- Recursion (NASDAQ:RXRX), a clinical-stage biotechnology company decoding biology by integrating technological innovations across biology, chemistry, automation, data science, and engineering, today reported financial results and business updates for its second quarter ending June 30, 2021.

    "We are excited with how Recursion is expanding across many fronts in order to deliver on our mission to decode biology to radically improve lives," said Recursion Co-Founder & CEO Chris Gibson, PhD. "Not only is the company continuing to advance and expand the total number of its research and development programs, but we are expanding our operations to Canada to grow our capabilities and workforce and we are enhancing our expertise in research and development by forming a Therapeutics Advisory Board. Moreover, the company continues to build on its medicinal chemistry expertise, resulting in our first internally-developed new chemical entity being advanced to IND-enabling studies for potential treatment of C. difficile colitis."

    Recursion finished the second quarter of 2021 with a portfolio of 4 clinical stage programs, 4 preclinical programs, 7 late discovery programs, and 33 early discovery programs, for a total of 48 research and development programs. Additionally, Recursion continued scaling the total number of executed phenomic experiments to over 82 million, the size of its proprietary data universe to approximately 9 petabytes, and the number of biological inferences to over 179 billion. Data have been generated across 37 human cell types, an in-house chemical library of over 706 thousand compounds, an in silico library of over 12 billion small molecules, and a growing team of more than 270 Recursionauts that is balanced between life scientists and computational and technical experts. The power of the Recursion OS is exemplified by the breadth of active research and development programs.

    Summary of Business Highlights

    • Clinical Programs
      • Familial adenomatous polyposis (FAP) (REC-4881): We plan to initiate a Phase 2, randomized, double-blind, placebo-controlled study to evaluate safety, pharmacokinetics, and efficacy of REC-4881 in classical FAP patients within the next 3 to 4 quarters.
      • Cerebral cavernous malformation (REC-994): We plan to initiate a Phase 2, double-blind, placebo-controlled safety, tolerability and exploratory efficacy study of REC-994 in the next 3 to 4 quarters.
      • Neurofibromatosis type 2 (REC-2282): We plan to initiate a parallel group, two stage, Phase 2/3, randomized, multicenter study within the next 3 to 4 quarters.
      • GM2 gangliosidosis (REC-3599): We plan to initiate a Phase 2 trial in the next 3 to 4 quarters.
    • Notable Preclinical Programs
      • Clostridium difficile colitis (REC-3964): REC-3964 is an orally active, gut biased, small molecule C. difficile toxin B inhibitor, selected as Recursion's first internally-developed new chemical entity (NCE) to advance to investigational new drug (IND)-enabling studies.
      • Immune checkpoint resistance in STK11-mutant non-small cell lung cancer (NSCLC): The lead molecule has completed dose optimization studies and has advanced into pharmacodynamic studies in rodent NSCLC models of STK11-mediated checkpoint resistance.
    • Notable Late Discovery Programs
      • Cancer immunotherapy, target 'alpha': Undisclosed target 'alpha' was selected based on an inferential assessment of the strength of its relationship to known genes impacting immunotherapy response. A small molecule inhibitor of target alpha demonstrated robust single agent and combination activity with anti-PD1 in a CT26 model of immune checkpoint resistance, achieving 40% complete response in the combination arm. 
      • Neuroinflammation: Multiple molecules from the lead chemical series demonstrated attenuated anti-inflammatory cytokine responses in a mouse pharmacodynamic model of neuroinflammation.
      • Oncology - small molecule MYC Inhibitors: Digital chemistry tools expanded multiple hit series with evidence of structure activity relationship. Multiple series are prioritized and undergoing optimization.
      • Batten disease: Multiple small molecule candidates are being evaluated in rodent pharmacodynamic models of Batten disease.
      • Charcot-Marie-Tooth type 2A (CMT2A): Multiple small molecule mechanistic classes will be assessed in a rodent model of CMT2A.
    • Bayer AG Partnership: We continue to make progress in our collaboration with Bayer to discover small molecule drug candidates with the potential to treat fibrotic diseases. In the collaboration's first year we have developed novel disease models and successfully leveraged the Recursion Operating System, or Recursion OS, to identify numerous active molecules and promising chemical families.
    • Platform
      • PhenoMap Extensions: We began generating arrayed whole genome knockout and compound library PhenoMaps in two additional cell types. Additionally, we have made substantial progress in onboarding astrocytes as our first neuronal cell type.
      • Chemical Technology: Over the past quarter, we have incorporated additional virtual chemical library search methods into our digital chemistry tools and have begun reading out positive results from our first large-scale expansion searches for our NCE programs.
      • Orthogonomics: We have more than doubled the total number of genes and proteins measured in transcriptomic and proteomic experiments during the past quarter, leveraging these studies across multiple programs to discover new in vitro disease biomarkers that we may use to assess the efficacy of compounds.
    • Facilities and Manufacturing: We have two construction projects in progress to expand our current headquarters and create a chemistry, manufacturing and controls (CMC) site in Salt Lake City. The expansion will allow us to improve our current platform by increasing capacity and automation, growing our compound and biobank libraries, further scaling proteomics and transcriptomics capabilities, and beginning the buildout of automated chemical compound microsynthesis. The CMC site will bolster our capabilities in analytical and formulation chemistry as well as small molecule manufacturing for early clinical trials for a subset of our key programs.
    • Expanding Operations to Canada: We announced our intention to launch our first major expansion beyond our Salt Lake City headquarters, with Toronto to serve as a multidisciplinary hub across data science, machine learning, engineering and computational biology. Additionally, we announced a multi-year collaboration with Mila, the Quebec Artificial Intelligence Institute, to accelerate Recursion's machine learning capabilities.

     

    Second Quarter 2021 Financial Results

    • Cash Position: Cash and cash equivalents were $632.7 million as of June 30, 2021 and included net proceeds of $462.4 million from the company's April 2021 initial public offering.
    • Revenue: Total revenue, consisting primarily of revenue from collaborative agreements, was $2.5 million for the second quarter of 2021, compared to $186 thousand for the second quarter of 2020. The increase was primarily due to progress in our collaboration with Bayer.
    • Research and Development Expenses: Research and development expenses were $29.6 million for the second quarter of 2021, compared to $13.2 million for the second quarter of 2020. The increase in research and development expenses was primarily due to an increased number of experiments run through the Recursion OS, an increased number of preclinical assets being validated, and increased clinical study-related costs.
    • General and Administrative Expenses: General and administrative expenses were $13.9 million for the second quarter of 2021, compared to $5.2 million for the second quarter of 2020. The increase in general and administrative expenses was due to growth in size of the company's operations, including an increase in salaries and wages of $5.7 million, equipment costs, human resources-related costs, facilities costs, finance costs and other administrative costs associated with operating a high-growth company.
    • Net Loss: Net loss was $43.4 million for the second quarter of 2021, compared to a net loss of $18.9 million for the second quarter of 2020.

     

    Other Corporate Updates

    • Therapeutics Advisory Board: A Therapeutics Advisory Board is being formed to advise Recursion's executive team and Board of Directors regarding key research and development issues. The Therapeutics Advisory Board is chaired by Joseph Miletich, MD, PhD, who previously was Merck Research Laboratories' Senior Vice President of Research Sciences and is currently Senior Scientific Advisor to Merck's CEO.
    • Altitude Lab: Altitude Lab, a healthcare and life sciences incubator co-founded by Recursion in 2020, announced the launch of its Investor Coalition to fund, mentor, and provide resources for Altitude-incubated startups in Utah. The Investor Coalition aims to collectively invest $50 million in Altitude's startups over the next three years.
    • Equity Index Inclusion: In Q2 2021, Recursion was added to a number of equity indices including the CRSP US Total Market, NASDAQ Composite, Russell 2000, Russell 3000, and S&P Total Market indices. These indices determine membership primarily by objective, market-capitalization rankings and style attributes.

    About Recursion

    Recursion is a clinical-stage biotechnology company decoding biology by integrating technological innovations across biology, chemistry, automation, machine learning, and engineering. Our goal is to radically improve the lives of patients and industrialize drug discovery. Central to our mission is the Recursion Operating System, which combines an advanced infrastructure layer to generate what we believe is one of the world's largest and fastest-growing proprietary biological and chemical datasets. We combine that with the Recursion Map, a suite of custom software, algorithms, and machine learning tools that we use to explore foundational biology unconstrained by human bias and navigate to new biological insights. We are a biotechnology company scaling more like a technology company. Learn more at www.Recursion.com, or connect on Twitter and LinkedIn.

    Contact

    Elyse Freeman - Communications and Content Manager

    Condensed Consolidated Statements of Operations

    Recursion Pharmaceuticals, Inc. 

    Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited)

    (in thousands, except share and per share amounts) 







    Three months ended



    Six months ended





    June 30,



    June 30,

    Revenue

    2021

    2020



    2021

    2020



    Grant revenue

    $                  49

    $                 186



    $                 111

    $                 246



    Operating revenue

    2,500

    -



    5,000

    -

    Total revenue

    2,549

    186



    5,111

    246















    Operating expenses













    Research and development

    29,624

    13,244



    53,733

    26,086



    General and administrative

    13,854

    5,159



    22,791

    10,720

    Total operating expenses

    43,478

    18,403



    76,524

    36,806















    Loss from operations

    (40,929)

    (18,217)



    (71,413)

    (36,560)



    Other loss, net

    (2,472)

    (726)



    (2,705)

    (807)

    Net loss and comprehensive loss

    $           (43,401)

    $           (18,943)



    $           (74,118)

    $           (37,367)















    Per share data











    Net loss per share of Class A and B common stock, basic and diluted

    $               (0.31)

    $               (0.88)



    $               (0.91)

    $               (1.73)

    Weighted average shares (Class A and B) outstanding, basic and diluted

    138,360,646

    21,652,277



    81,022,240

    21,646,118



     

    Condensed Consolidated Balance Sheets

    Recursion Pharmaceuticals, Inc. 

    Condensed Consolidated Balance Sheets (unaudited)

    (in thousands)













    June 30,

    December 31,





    2021

    2020

    Assets







    Current assets







    Cash and cash equivalents

    $         632,738

    $         262,126



    Restricted cash

    10,232

    5,041



    Accounts receivable

    49

    156



    Other current assets

    4,616

    2,155



    Total current assets

    647,635

    269,478











    Property and equipment, net

    48,549

    25,967



    Intangible assets, net

    2,338

    2,490



    Other non-current assets

    68

    650



    Total assets

    $         698,590

    $         298,585









    Liabilities, convertible preferred stock and stockholders' equity (deficit)







    Current liabilities







    Accounts payable

    $             3,196

    $             1,074



    Accrued expenses and other liabilities

    12,710

    10,485



    Current portion of unearned revenue

    10,000

    10,000



    Current portion of notes payable

    3,135

    1,073



    Current portion of lease incentive obligation

    499

    467



    Total current liabilities

    29,540

    23,099











    Deferred rent

    2,819

    2,674



    Unearned revenue, net of current portion

    11,667

    16,667



    Notes payable, net of current portion

    9,423

    11,414



    Lease incentive obligation, net of current portion

    2,427

    2,708



    Total liabilities

    55,876

    56,562











    Commitments and contingencies















    Convertible preferred stock

    -

    448,312



    Stockholders' equity (deficit)







    Common stock (Class A and B)

    2

    -



    Additional paid-in capital

    930,431

    7,312



    Accumulated deficit

    (287,719)

    (213,601)



    Total stockholder's equity (deficit)

    642,714

    (206,289)











    Total liabilities, convertible preferred stock and stockholders' equity (deficit)

    $         698,590

    $         298,585

     

    Forward Looking Statements

    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 mission; research and development activities; plans with respect to preclinical, clinical, and late discovery programs; collaborations; prospective products and their anticipated future applications or performance; platform; technology; facilities expansion; growth; expenses; our ability to obtain, maintain and enforce intellectual property and cybersecurity protections, and business and financial 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," "target," and similar terms. These statements and their underlying assumptions 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. Such risks and uncertainties include, but are 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 remains high and failure can unexpectedly occur at any stage prior to regulatory approval due to lack of sufficient efficacy, safety considerations, or other factors; our ability to fund development activities and achieve development goals; the success of our collaboration activities; our ability to obtain regulatory approval of, and ultimately commercialize, drug candidates; the impact of the COVID-19 pandemic on our business, clinical trials, financial condition, and results of operations; our ability to obtain, maintain, and enforce intellectual property and cybersecurity protections; our ability to attract, motivate, and retain key employees; and other risks and uncertainties described under the heading "Risk Factors" in our filings with the U.S. Securities and Exchange Commission, including Recursion's Prospectus for our initial public offering filed on April 16, 2021 and our recent Quarterly Report 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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