Recursion Pharmaceuticals (RXRX) Morgan Stanley 24th Annual Global Healthcare Conference summary

Industry trends and competitive positioning

• Emphasis on novel biology and first-in-class targets as the next frontier, reinforced by global innovation trends, especially in China.

• Proprietary data and AI-driven discovery are central to maintaining a competitive edge.

• Recent partnerships and deals highlight the value of unique biological insights.

Strategic transformation and productivity

• Transitioned from a platform-focused to an end-to-end AI-driven drug discovery and development company over the past 12-18 months.

• Achieved a 40% reduction in cost base post-Exscientia integration by leveraging AI, automation, and focused capital allocation.

• Demonstrated repeatability and productivity in both internal pipeline and partnerships.

Pipeline highlights and clinical progress

• REC-4881, a first-in-class oral drug for FAP, showed rapid and durable polyp reduction, with regulatory clarity expected in the second half of the year.

• REC-1245 targets RBM39, discovered through the same AI engine, with potential in genomically unstable and pediatric tumors.

• Multiple programs advancing, including PI3Kα H1047R and IND-enabling programs, with catalysts expected over the next 12-18 months.