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Jun 30, 2023
Recursion Pharmaceuticals Q2 2023 Earnings Report
Recursion Pharmaceuticals reported financial results for the second quarter of 2023, showcasing advancements in its pipeline, partnerships, and platform, including the acquisitions of Cyclica and Valence Discovery and a new partnership with NVIDIA.
Key Takeaways
Recursion Pharmaceuticals reported a total revenue of $11.0 million for Q2 2023, an increase from $7.7 million in Q2 2022, driven by progress in the Roche-Genentech collaboration. The company's net loss was $76.7 million, compared to a net loss of $65.6 million for the same period in the previous year. The company's cash and cash equivalents were $405.9 million as of June 30, 2023.
Deployed new digital chemistry technology with NVIDIA, predicting ligand-protein interactions for approximately 36 billion compounds.
Advanced clinical study readouts and starts, with the first clinical readout expected in Q3 2023.
Enhanced pipeline, partnerships, and platform through the acquisitions of Cyclica and Valence Discovery.
Announced a $50 million investment and partnership with NVIDIA to accelerate foundation models for biology and chemistry.
Revenue by Segment
Forward Guidance
Recursion anticipates multiple clinical catalysts in the coming quarters, driven by progress in technology and team commitment, making its vision of industrialized drug discovery a reality.
Positive Outlook
- Phase 2 proof-of-concept data for Cerebral Cavernous Malformation (CCM) expected in H2 2024.
- Phase 2 safety, tolerability, pharmacokinetics and preliminary efficacy data for Neurofibromatosis Type 2 (NF2) expected in H2 2024.
- Phase 2 safety, tolerability, pharmacokinetics and preliminary efficacy data for Familial Adenomatous Polyposis (FAP) expected in H1 2025.
- Phase 2 study for AXIN1 or APC Mutant Cancers expected to initiate in Q4 2023.
- Phase 1 safety and pharmacokinetics data for Clostridioides difficile Infection (REC-3964) expected in Q3 2023.
Challenges Ahead
- Challenges inherent in pharmaceutical research and development, including the timing and results of preclinical and clinical programs.
- Risk of failure is high and can occur at any stage prior to or after regulatory approval due to lack of sufficient efficacy, safety considerations, or other factors.
Historical Earnings Impact
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