Recursion Pharmaceuticals, Inc. Q1 FY2026 earnings call

Recursion has built a differentiated platform integrating large-scale biological data generation, machine learning, and compute. They are at an inflection point, focusing on translating insights into evidence, advancing their end-to-end AI platform. Strategic pillars include tangible proof points from clinical and partner programs, investing in the platform, and disciplined execution. In clinical development, they have a diversified portfolio with FAP showing positive proof of concept. In discovery, they have diversified programs. Partnerships with Sanofi have achieved over $500 million in cash infills. The platform has three components: biology to insight with high-quality multimodal data, AI for chemistry with 90% of molecules prioritized by models and faster synthesis, and clinical development AI platform with improved enrollment rates and study start times.

2026 cash operating expenses expected under 390 million. Cash runway extended to early 2028. Expect to continue achieving partnership milestones including the first one earlier this month. On track for initial FDA engagement with REC 481 first half of 2026, early safety and PK data for RBM 39 first half of 2026, go-no-go decisions for PI3K and ENPP1 in IND enabling, additional data for 4881 early next year, combo data for CDK7 program, early safety and PK data for MALT1 and LSD1, and progress in partner programs with Sanofi and Roche Genentech.

Q: Understanding potential registrational pathway for REC 4881 and updated patient population.

A: On track for initial FDA engagement first half of 2026 to discuss registrational study design, patient population, endpoints. 18 and over cohort already recruiting and dose optimization efforts ongoing.

Q: Cost cutting measures, one-offs and go forward.

A: Efficiency more than cost cutting, continuing to find ways to do more with less, growing pipeline and investing in platform while hitting cost targets.

Q: NVIDIA divestment and seeking other technology partners.

A: Technical collaboration with NVIDIA continues, divestment is NVIDIA's investment portfolio shift. Seeking other technology partners like Google for cloud compute.

Q: Metrics demonstrating improvement in clinical success probability or speed of development.

A: Repeatability of delivery in partner pipeline, speed of delivery in terms of number of novel compounds synthesized and tested, and speed to development candidates, with proof in clinic like FAP's positive proof of concept.