Exscientia (EXAI) Morgan Stanley 22nd Annual Global Healthcare Conference summary

Strategic rationale and combination benefits

• The merger unites complementary strengths: Recursion's data-driven biological insights and Exscientia's AI-powered small molecule design, creating an end-to-end drug discovery platform.

• Both companies' pipelines are orthogonal, with Recursion focused on novel, first-in-class targets (notably in rare diseases) and Exscientia on best-in-class molecules in broader indications like oncology.

• The combination de-risks the pipeline and enhances partnership opportunities, leveraging existing collaborations with major pharma companies such as Sanofi, Merck KGaA, Roche Genentech, and Bayer.

• Strong cultural alignment and shared mission are expected to enable rapid integration and operational effectiveness post-close.

• Integration planning is underway, with full operational integration targeted for early 2025.

Operational and financial synergies

• Anticipated annual synergies of approximately $100 million, primarily from consolidating NASDAQ listings, board and executive structures, and operational efficiencies.

• Significant cost savings expected by internalizing work currently outsourced to CROs, especially in chemistry and biology functions.

• Centralizing early-stage development and leveraging automation and digital biology capabilities will further drive efficiencies.

• Synergies will also enhance execution and delivery for existing and future partnership objectives.

Partnerships and business model

• Existing partnerships with major pharma companies will continue as structured, with integration planning focused on avoiding disruption.

• Over the next 24 months, collective partnerships are expected to deliver more than $200 million in milestones.

• The combined entity may expand or evolve collaborations as new capabilities are realized.