Recursion Pharmaceuticals, Inc. Q4 FY2025 earnings call

Najat Khan framed Recursion Pharmaceuticals' journey, highlighting the integration of large-scale biological data, machine learning, and compute. The company is at an inflection point, focusing on translating insights into evidence, with a trifecta of AI-driven biology, AI-enabled chemistry, and AI applied to clinical development. Key operational highlights include progress in clinical pipeline (FAP first positive proof of concept), Sanofi collaboration achieving fifth milestone, platform advancements like AI-enabled chemistry synthesizing 90% fewer compounds and faster timelines, biology maps with Roche Genentech, and 35% reduction in pro forma operating expenses. Also, focus on tangible proof points, platform investment, and momentum with discipline.

2026 cash operating expenses expected under $390 million. Cash runway extended to early 2028. 2026 catalysts include initial FDA engagement for REC-481, early safety and PK data for RBM39, go/no-go decisions for PI3K and ENPP1, additional data for REC-4881, combo data for CDK7, and early safety and PK data from MALT1 and LSD1. Partner catalysts involve Sanofi programs progressing and novel biology maps with Roche Genentech.

Q: Questions around REC-4881's potential registrational pathway, regulatory update, and patient population.

A: On track for initial FDA engagement in 2026 for registrational study design, 18-and-over cohort recruiting, and dose optimization.

Q: Cost optimization measures in Q4.

A: Efficiency focus, no big one-offs, continuing to find ways to do more with less.

Q: NVIDIA divestment and technology partners.

A: Technical collaboration with NVIDIA continues, divestment was NVIDIA's portfolio shift, strategic partnerships with Google and NVIDIA, will continue bridging tech and science.

Q: Metrics showing improved clinical success probability.

A: From discovery perspective, repeatable platform delivering best-in-class/first-in-class solutions, speed of delivery with fewer compounds synthesized and faster timelines, clinical proof of concept with FAP and repeatability goal