Recursion Pharmaceuticals (RXRX) TD Cowen 46th Annual Health Care Conference summary

Platform and business model evolution

• Transitioned from a single-point solution to an integrated platform combining phenotypic screening, transcriptomics, proteomics, and real-world evidence for drug discovery.

• Added a novel design platform to explore chemical space and solve previously unsolved industry problems, leveraging leadership with AI and operational expertise.

• Unified workflow enables better predictive modeling, aiming to lower clinical failure rates and improve trial design.

• Partnership inflows surpassed $500 million, supporting platform investment and risk diversification across multiple clinical and preclinical programs.

• Emphasis on disciplined, data-driven decision-making under new leadership, focusing on high-return opportunities and operational rigor.

Strategic partnerships and differentiation

• Roche and Sanofi are major partners, with $210 million from Roche for neuroscience PhenoMaps and five discovery milestones achieved with Sanofi.

• Partnership structures include upfront payments for development costs and early milestones, with profit realized as partners advance candidates.

• Proprietary data assets (over 50 PB) enable unique AI model development, addressing the 90% of the genome not covered by existing drugs.

• Integration of multiple modeling systems reduces noise and enhances experimental validation.

• Collaboration with tech companies like NVIDIA provides advanced compute infrastructure, accelerating data analysis and model deployment.

Pipeline progress and clinical innovation

• REC-4818 in FAP showed dramatic, durable reductions in polyp count, with ongoing FDA engagement to define pivotal trial design.

• ClinTech platform accelerated patient enrollment by 30%-50% across several trials, optimizing site selection and patient targeting.

• CDK7 program pivoted to ovarian cancer based on mechanistic and clinical data, with combination trial data expected in the first half of 2027.

• All pipeline programs are subject to strict go/no-go criteria, with rapid termination if benchmarks are not met.

• Upcoming data updates expected for FAP (first half 2024), CDK7 (first half 2027), and additional programs in the second half of 2024.