Exscientia (EXAI) investor relations material

Business combination rationale and integration

• Exscientia and Recursion are merging to combine Recursion's expertise in decoding biology with Exscientia's AI-driven small molecule design, aiming for an end-to-end drug discovery platform.

• The companies' pipelines are complementary, with Recursion focused on novel, first-in-class targets and rare diseases, and Exscientia on best-in-class molecules in oncology.

• Both firms have strong, non-overlapping partnerships with major pharma companies, including Sanofi, Merck KGaA, Roche Genentech, and Bayer.

• Cultural alignment is seen as a key enabler for rapid integration, with full operational integration targeted for early 2025.

• The combined entity expects to leverage a large talent base across North America and Europe to drive innovation in drug discovery.

Financial and operational synergies

• The merger is expected to generate approximately $100 million in annual synergies, mainly from consolidating Nasdaq listings, board, and executive functions.

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

• Early-stage pipeline development will be centralized, aligning objectives and reducing duplication.

• Operational structures for existing partnerships will remain unchanged, with potential for expanded collaborations leveraging new capabilities.

• The combined partnerships could deliver over $200 million in milestones within 24 months.

Platform proof points and pipeline progress

• Exscientia has delivered multiple AI-designed small molecules into development, achieving 60% cost savings and 80-90% fewer experiments compared to industry benchmarks.

• Recursion's pipeline features novel targets and patient-centric approaches, with recent Phase II data for CCM showing safety and promising efficacy trends.

• Both companies report faster and cheaper development timelines, with Recursion often achieving half the time and cost of industry averages.

• Partnerships with Roche Genentech and Bayer have yielded significant payments and collaborative advances, including genome-scale knockout studies and software platform adoption.

• Both platforms emphasize automation, data standardization, and active learning cycles as the future of drug discovery.