Exscientia (EXAI) Q2 2024 earnings summary

Executive summary

• Entered definitive agreement to combine with Recursion Pharmaceuticals, aiming to create a global technology-enabled drug discovery leader with end-to-end capabilities.

• Acquired full rights to GTAEXS617 (CDK7 inhibitor), with initial Phase I monotherapy data expected in 2H24.

• Launched AWS AI-powered platform to advance drug discovery and automation.

• LSD1 and MALT1 inhibitor programs progressing toward clinic, with IND/CTA submissions on track for 2H24.

Financial highlights

• Revenue for Q2 2024 was $5.6M, up from $3.8M in Q2 2023; H1 2024 revenue was $12.3M, up from $11.1M in H1 2023, driven by more active projects.

• R&D expenses for Q2 2024 were $31.7M, down from $41.7M in Q2 2023; H1 2024 R&D was $61.5M, down from $83.9M, reflecting cost reductions and pipeline prioritization.

• G&A expenses for Q2 2024 were $21.2M, up $6.5M year-over-year due to $7.5M in severance and termination costs; H1 2024 G&A was $25.6M, down $2.9M year-over-year due to share option forfeiture credits.

• Net loss for Q2 2024 was $45.7M, compared to $45.5M in Q2 2023; H1 2024 net loss was $72.4M, improved from $93.1M in H1 2023.

• Cash, cash equivalents, and short-term deposits were $370.1M as of June 30, 2024, down from $458.9M at year-end 2023.

Outlook and guidance

• Topline data from the dose escalation phase of the ELUCIDATE trial for GTAEXS617 expected in 2H24.

• IND submission for LSD1 inhibitor (EXS74539) and CTA for MALT1 inhibitor (EXS73565) anticipated in 2H24, with Phase 1/2 trials for both expected to start in early 2025.

• Combination with Recursion expected to close, creating a leading end-to-end drug discovery platform.