On this page of StockholderLetter.com we present the latest annual shareholder letter from RECURSION PHARMACEUTICALS, INC. — ticker symbol RXRX. Reading current and past RXRX letters to shareholders can bring important insights into the investment thesis.
2024 Annual Report
A Letter from Our Co-Founder and CEO Dear Shareholders, As we step into 2025, I want to take a moment to reflect on where Recursion stands today and where we are headed. The future of our company and of the broader pharmaceutical industry depends on our ability to maintain an unwavering commitment to a bold, audacious vision. This is even more true in challenging times where funding, both for biotech companies and the early research that drives our industry forward, are facing headwinds. At Recursion, we are driven by a singular mission: to decode biology to radically improve lives. We are harnessing the power of cutting-edge technology, vast datasets, and foundation models to transform the way drugs are discovered and developed. And while we ve adjusted our sails to the winds of our industry, capital markets and more, we ve never altered our destination. We won t settle for anything less than achieving this mission, and I m proud to lead a company where we take that approach, from our employees, to our leadership, and to our Board of Directors. Our boldness in the face of stormy weather is one of the things that makes us the leader in TechBio. Largest merger or acquisition IN THE TECHBIO SPACE TO DATE WITH EXSCIENTIA Recursion s commitment to revolutionizing drug development took a major leap forward last year with the announcement of the largest merger or acquisition in the TechBio space to date our combination with Exscientia. This was not just a transaction; it was the formation of a first-of-its-kind, fully integrated, technology-first drug discovery platform, and it was a transaction that we ve known could be transformative for years. By uniting Recursion s strength in scaling biological insights and clinical translation with Exscientia s precision chemistry and small-molecule expertise, we have created a seamless, AI-driven approach spanning from early discovery to clinical development. Through this combination, we have built a unique full-stack platform. Way back in 2013, we started with a point-solution; leveraging computer vision to unlock all of the information in cell morphology. Our pioneering work in phenomics, which is now a part of nearly every large pharmaceutical company s discovery workstream, was just the beginning. While hundreds of TechBio startups today are optimizing their first pointsolution, we ve continued advancing our tech-enabled philosophy to build, buy and combine point solutions across virtually all major steps in drug discovery from target discovery to clinical development. We ve continued investing, from scaling new highdimensional -omics assays, to building BioHive-2, the most advanced supercomputer in the pharmaceutical industry, all because we believe more than ever that a technologydriven approach is what will finally unlock the much needed and anticipated shift in the way drugs are discovered and developed. And while I m proud that we have led the burgeoning TechBio space for more than a decade, I m even happier to see hundreds of companies, big and small, following in our footsteps. For years we preached the potential of combining sophisticated computational techniques with large biological and chemical dataset creation to a skeptical (and sometimes hostile) audience. Today, the naysayers are part of a slimming minority and the progressive visionaries of the industry are all plotting their path to this inevitable future of drug discovery. The era of TechBio is truly here, and we are proud to be such a big part of it.
10 key clinical milestones EXPECTED OVER THE NEXT 18 MONTHS A Look Back at 2024: Delivering on the Promise of AI and Data-Driven Drug Discovery The strength of our approach is evident in our growing portfolio. We now have 10 clinical and preclinical programs, with approximately 10 key clinical milestones expected over the next 18 months. Beyond that, we have more than 10 advanced discovery programs advancing rapidly toward the clinic alongside some incredibly exciting programs and molecules that are a part of our discovery collaborations. One compelling example is REC-1245, a potential first-in-class RBM39 degrader for biomarker-enriched solid tumors and lymphoma. This program, one of the first to result from our end-to-end AI-enabled platform, leveraged advanced maps of biology to identify RBM39 as a critical target and our early AI-enabled chemistry platform to advance the molecule to candidate. Through preclinical models, we validated that RBM39 degradation disrupts key DNA damage response (DDR) networks, potentially halting cancer growth. The journey from target identification to IND-enabling studies was completed in just 18 months less than half of the industry average leading to our first patient being dosed in the fourth quarter of 2024. Another breakthrough is REC-617, our precision-designed CDK7 inhibitor, which has shown promising interim results in the Phase 1/2 ELUCIDATE trial. Early data demonstrates robust target engagement, a favorable pharmacokinetic and pharmacodynamic profile, and compelling initial clinical activity. Notably, a confirmed partial response was observed in a heavily pre-treated patient with platinum-resistant ovarian cancer, lasting more than six months, alongside four additional patients achieving stable disease. Designed entirely using our AI-led platform, REC-617 was synthesized from hit to candidate in just under 12 months, requiring only 136 novel molecules an order of magnitude more efficient than conventional drug discovery. Beyond our own programs, we continue to collaborate with leading biopharma partners like Roche and Genentech, Sanofi, Bayer, and Merck KGaA, Darmstadt, Germany. These partnerships validate our platform and amplify our impact. For example, our collaboration with Roche and Genentech achieved a groundbreaking milestone: the world s first genome-scale Neuromap, a comprehensive AI-powered model of neurobiology built from human-induced pluripotent stem cell (hiPSC)-derived neurons. This effort, which required generating over a trillion neurons, led to a first-of-its-kind neuroscience phenomap that Roche-Genentech optioned for $30 million. >$450 Million IN COLLABORATION PAYMENTS TO DATE Similarly, our work with Sanofi continues to drive value. In 2024, we received $15 million in milestone payments after advancing two discovery programs into lead optimization, each showing strong differentiation and best-in-class potential. To date, we have generated over $450 million in collaboration payments, not only through upfront payments, but by consistently delivering on milestones, a feat achieved by few other biotech companies in history. As we look ahead, we are well on our way toward unlocking up to $20 billion in potential milestone payments before royalties fueling the next generation of AI-driven drug discovery and development.
2025 and Beyond: The Dawn of the Virtual Cell For the small set of leaders in TechBio spanning companies, institutes and academics we are converging around a breakthrough in the coming years that has the potential to create a transformational shift. We are approaching a future where many biological processes can be accurately simulated a concept we call the "virtual cell." Today, our wet labs primarily generate the data needed to train AI models. But in the near future, these labs will primarily validate AI-driven predictions, fundamentally flipping the paradigm of drug discovery. Four interconnected layers of biology We believe that achieving this vision will require excellence across four interconnected layers of biology: 1. Population-Scale Patient-Level Data: Thanks to the genomic revolution and the progressive thinking of a small number of governments around the world, we and many others have had access to population-scale -omics data from patients. In the last 18 months, we have dramatically expanded the power of our approach by signing deals with companies like Tempus and Helix to bring tens of petabytes of proprietary data to support our discovery and development. 2. Pathway-Level Data: We are far ahead in systematically mapping gene networks across multiple cellular contexts, using techniques like whole-genome CRISPR knockout and high-dimensional -omics analysis across hundreds of millions of proprietary experiments. 3. Protein-Level Insights: AlphaFold and similar tools have revolutionized protein modeling. By integrating state-of-the-art protein-protein interaction and ligandbinding predictions, we remain at the forefront of this rapidly evolving space. 4. Atomistic-Level Simulations: With Exscientia s quantum mechanics/molecular dynamics (QM/MD) expertise now part of Recursion, we are uniquely positioned to lead in simulating molecular interactions at atomic precision. Population-Scale Patient-Level Data Pathway-Level Data Protein-Level Insights Atomistic-Level Simulations By integrating these layers, Recursion is building one of the most advanced predictive models of human biology ever created. This will allow us to explore the vast landscape of potential drugs and disease mechanisms in silico before ever stepping into the lab dramatically accelerating drug development timelines and reducing costs. Transforming Clinical Development with AI and Automation This is not just about technology for the sake of technology. It is about ensuring that the boldest ideas in biotech are realized and that the future of medicine is shaped by those who are willing to embrace the extraordinary. In 2025, we are also doubling down on transforming clinical development through our ClinTech platform, powered by AI, automation, and real-world evidence. Our partnerships with Tempus, Helix and a growing cohort of other data sources provide us with access to critical patient data, allowing us to: Use AI-driven simulations to optimize trial design and enhance our probability of success. Automate critical processes like patient recruitment and site activation, dramatically reducing enrollment timelines. Leverage real-world evidence to inform regulatory strategies and increase the likelihood of clinical success. And through partnerships with Faro Health and other industry leaders, we are industrializing clinical workflows, reducing trial costs, and streamlining operations all while increasing the speed at which we bring new medicines to patients. We are in the early days of this work, but I am so excited at the potential I am already seeing. Coupling these advances with our discovery and translational platform will magnify all of our clintech work and continue to accelerate our lead in the TechBio space.
 • shareholder letter icon 4/28/2025 Letter Continued (Full PDF)
 • stockholder letter icon 4/28/2023 RXRX Stockholder Letter
 • stockholder letter icon 4/23/2024 RXRX Stockholder Letter
 • stockholder letter icon More "Biotechnology" Category Stockholder Letters
 • Benford's Law Stocks icon RXRX Benford's Law Stock Score = 76


RXRX Shareholder/Stockholder Letter Transcript:

2024 Annual Report


A Letter from Our
Co-Founder and CEO
Dear Shareholders,
As we step into 2025, I want to take a moment to reflect on where Recursion stands today and where we are headed. The future of
our company   and of the broader pharmaceutical industry   depends on our ability to maintain an unwavering commitment to a bold,
audacious vision. This is even more true in challenging times where funding, both for biotech companies and the early research that
drives our industry forward, are facing headwinds. At Recursion, we are driven by a singular mission: to decode biology to radically
improve lives. We are harnessing the power of cutting-edge technology, vast datasets, and foundation models to transform the way
drugs are discovered and developed. And while we   ve adjusted our sails to the winds of our industry, capital markets and more, we   ve
never altered our destination. We won   t settle for anything less than achieving this mission, and I   m proud to lead a company where we
take that approach, from our employees, to our leadership, and to our Board of Directors. Our boldness in the face of stormy weather
is one of the things that makes us the leader in TechBio.
Largest
merger or
acquisition
IN THE TECHBIO SPACE TO
DATE WITH EXSCIENTIA
Recursion   s commitment to revolutionizing drug development took a major leap forward
last year with the announcement of the largest merger or acquisition in the TechBio
space to date   our combination with Exscientia. This was not just a transaction; it was
the formation of a first-of-its-kind, fully integrated, technology-first drug discovery
platform, and it was a transaction that we   ve known could be transformative for years. By
uniting Recursion   s strength in scaling biological insights and clinical translation with
Exscientia   s precision chemistry and small-molecule expertise, we have created a
seamless, AI-driven approach spanning from early discovery to clinical development.
Through this combination, we have built a unique full-stack platform. Way back in 2013,
we started with a point-solution; leveraging computer vision to unlock all of the
information in cell morphology. Our pioneering work in phenomics, which is now a part of
nearly every large pharmaceutical company   s discovery workstream, was just the
beginning. While hundreds of TechBio startups today are optimizing their first pointsolution, we   ve continued advancing our tech-enabled philosophy to build, buy and
combine point solutions across virtually all major steps in drug discovery from target
discovery to clinical development. We   ve continued investing, from scaling new highdimensional -omics assays, to building BioHive-2, the most advanced supercomputer in
the pharmaceutical industry, all because we believe more than ever that a technologydriven approach is what will finally unlock the much needed and anticipated shift in the
way drugs are discovered and developed.
And while I   m proud that we have led the burgeoning TechBio space for more than a
decade, I   m even happier to see hundreds of companies, big and small, following in our
footsteps. For years we preached the potential of combining sophisticated computational
techniques with large biological and chemical dataset creation to a skeptical (and
sometimes hostile) audience. Today, the naysayers are part of a slimming minority and
the progressive visionaries of the industry are all plotting their path to this inevitable
future of drug discovery. The era of TechBio is truly here, and we are proud to be such a
big part of it.

10 key
clinical
milestones
EXPECTED OVER THE NEXT
18 MONTHS
A Look Back at 2024: Delivering on the Promise
of AI and Data-Driven Drug Discovery
The strength of our approach is evident in our growing portfolio. We now have 10 clinical
and preclinical programs, with approximately 10 key clinical milestones expected over the
next 18 months. Beyond that, we have more than 10 advanced discovery programs
advancing rapidly toward the clinic alongside some incredibly exciting programs and
molecules that are a part of our discovery collaborations.
One compelling example is REC-1245, a potential first-in-class RBM39 degrader for
biomarker-enriched solid tumors and lymphoma. This program, one of the first to result
from our end-to-end AI-enabled platform, leveraged advanced maps of biology to identify
RBM39 as a critical target and our early AI-enabled chemistry platform to advance the
molecule to candidate. Through preclinical models, we validated that RBM39 degradation
disrupts key DNA damage response (DDR) networks, potentially halting cancer growth.
The journey from target identification to IND-enabling studies was completed in just 18
months   less than half of the industry average   leading to our first patient being dosed
in the fourth quarter of 2024.
Another breakthrough is REC-617, our precision-designed CDK7 inhibitor, which has
shown promising interim results in the Phase 1/2 ELUCIDATE trial. Early data
demonstrates robust target engagement, a favorable pharmacokinetic and
pharmacodynamic profile, and compelling initial clinical activity. Notably, a confirmed
partial response was observed in a heavily pre-treated patient with platinum-resistant
ovarian cancer, lasting more than six months, alongside four additional patients achieving
stable disease. Designed entirely using our AI-led platform, REC-617 was synthesized
from hit to candidate in just under 12 months, requiring only 136 novel molecules   an
order of magnitude more efficient than conventional drug discovery.
Beyond our own programs, we continue to collaborate with leading biopharma partners
like Roche and Genentech, Sanofi, Bayer, and Merck KGaA, Darmstadt, Germany.
These partnerships validate our platform and amplify our impact. For example, our
collaboration with Roche and Genentech achieved a groundbreaking milestone: the
world   s first genome-scale Neuromap, a comprehensive AI-powered model of
neurobiology built from human-induced pluripotent stem cell (hiPSC)-derived neurons.
This effort, which required generating over a trillion neurons, led to a first-of-its-kind
neuroscience phenomap that Roche-Genentech optioned for $30 million.
>$450 Million
IN COLLABORATION PAYMENTS
TO DATE
Similarly, our work with Sanofi continues to drive value. In 2024, we received $15 million
in milestone payments after advancing two discovery programs into lead optimization,
each showing strong differentiation and best-in-class potential. To date, we have
generated over $450 million in collaboration payments, not only through upfront
payments, but by consistently delivering on milestones, a feat achieved by few other
biotech companies in history. As we look ahead, we are well on our way toward unlocking
up to $20 billion in potential milestone payments before royalties   fueling the next
generation of AI-driven drug discovery and development.

2025 and Beyond: The Dawn of the Virtual Cell
For the small set of leaders in TechBio   spanning companies, institutes and academics we are converging around a breakthrough in the coming years that has the potential to
create a transformational shift. We are approaching a future where many biological
processes can be accurately simulated   a concept we call the "virtual cell." Today, our
wet labs primarily generate the data needed to train AI models. But in the near future,
these labs will primarily validate AI-driven predictions, fundamentally flipping the
paradigm of drug discovery.
Four interconnected
layers of biology
We believe that achieving this vision will require excellence across four interconnected
layers of biology:
1.
Population-Scale Patient-Level Data: Thanks to the genomic revolution and
the progressive thinking of a small number of governments around the world, we
and many others have had access to population-scale -omics data from
patients. In the last 18 months, we have dramatically expanded the power of our
approach by signing deals with companies like Tempus and Helix to bring tens
of petabytes of proprietary data to support our discovery and development.
2.
Pathway-Level Data: We are far ahead in systematically mapping gene
networks across multiple cellular contexts, using techniques like whole-genome
CRISPR knockout and high-dimensional -omics analysis across hundreds of
millions of proprietary experiments.
3.
Protein-Level Insights: AlphaFold and similar tools have revolutionized protein
modeling. By integrating state-of-the-art protein-protein interaction and ligandbinding predictions, we remain at the forefront of this rapidly evolving space.
4.
Atomistic-Level Simulations: With Exscientia   s quantum mechanics/molecular
dynamics (QM/MD) expertise now part of Recursion, we are uniquely positioned
to lead in simulating molecular interactions at atomic precision.
    Population-Scale
Patient-Level Data
    Pathway-Level Data
    Protein-Level
Insights
    Atomistic-Level
Simulations
By integrating these layers, Recursion is building one of the most advanced predictive
models of human biology ever created. This will allow us to explore the vast landscape of
potential drugs and disease mechanisms in silico before ever stepping into the lab   
dramatically accelerating drug development timelines and reducing costs.
Transforming Clinical Development with AI and
Automation
   This is not just about
technology for the sake
of technology. It is about
ensuring that the boldest
ideas in biotech are
realized and that the
future of medicine is
shaped by those who
are willing to embrace
the extraordinary.   
In 2025, we are also doubling down on transforming clinical development through our
ClinTech platform, powered by AI, automation, and real-world evidence. Our partnerships
with Tempus, Helix and a growing cohort of other data sources provide us with access to
critical patient data, allowing us to:

Use AI-driven simulations to optimize trial design and enhance our probability of
success.

Automate critical processes like patient recruitment and site activation,
dramatically reducing enrollment timelines.

Leverage real-world evidence to inform regulatory strategies and increase the
likelihood of clinical success.
And through partnerships with Faro Health and other industry leaders, we are
industrializing clinical workflows, reducing trial costs, and streamlining operations   all
while increasing the speed at which we bring new medicines to patients. We are in the
early days of this work, but I am so excited at the potential I am already seeing. Coupling
these advances with our discovery and translational platform will magnify all of our
clintech work and continue to accelerate our lead in the TechBio space.



shareholder letter icon 4/28/2025 Letter Continued (Full PDF)
 

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