Recursion Pharmaceuticals (RXRX) 25th Annual Needham Virtual Healthcare Conference summary

Strategic priorities and business model evolution

• Entered a new phase post-2024 merger, focusing on regular data readouts and partnership milestones in 2026.

• Internal pipeline, pharma partnerships, and proprietary platform (Recursion OS) are key value drivers, with partnerships providing steady revenue and internal pipeline offering transformative potential.

• Over $500 million raised through partnerships, advancing five candidates with Sanofi and achieving significant milestones with Roche.

• ClinTech business has improved patient enrollment and site identification by 30%-60%.

• Ongoing focus on integrating biology, chemistry, and real-world data for differentiated discovery and value creation.

Industry trends and competitive landscape

• Industry is increasingly adopting industrialized data generation at the discovery stage, with major players like Eli Lilly investing in similar approaches.

• Only 10% of the genome has been explored pharmaceutically, highlighting vast untapped potential.

• Differentiated, multimodal data is essential for predictive modeling in drug discovery; integration of orthogonal data sources is a key advantage.

• Balanced business model allows validation of AI-driven approaches, appealing to both tech and biotech investors.

Partnership and financial outlook

• Roche partnership has delivered over $210 million, focusing on translating neural maps into neuroscience programs.

• Sanofi partnership has advanced five candidates, with each program eligible for up to $343 million in milestones and attractive royalties.

• Partnerships are structured for upfront cost coverage and profitability post-development milestones, with ongoing expansion considered.

• No explicit guidance on milestone timing, but both partnerships are progressing well.