Recursion Pharmaceuticals | research notes

Recursion Pharmaceuticals: A Pioneer in Precision Medicine

Introduction Recursion Pharmaceuticals is a groundbreaking biotechnology company that is revolutionizing the field of precision medicine. Founded in 2013 by scientists from the University of Utah, Recursion is dedicated to developing transformative therapies that address the root causes of disease using artificial intelligence (AI) and machine learning.

AI-powered Drug Discovery Platform Recursion has developed a cutting-edge AI platform called Recursion OS, which enables the company to analyze vast amounts of biological data and identify potential drug targets. This platform combines advanced computational techniques with high-throughput experimentation to screen millions of compounds and disease models simultaneously.

Focus on Rare and Undruggable Diseases Recursion's primary focus is on rare and undruggable diseases that have historically been difficult to treat. These diseases often lack effective therapies due to their complex genetic and molecular underpinnings. By leveraging its AI capabilities, Recursion aims to uncover novel targets and develop precision therapies that can effectively address these unmet medical needs.

Pipeline of First-in-Class Therapies Recursion's pipeline of first-in-class therapies includes treatments for a wide range of rare diseases, including:

• GAN - A therapy for glycogen storage disease type II, a rare genetic disorder that affects the liver.
• RCA - A treatment for rheumatoid arthritis, an autoimmune disease that causes inflammation and joint damage.
• LSA - A therapy for amyotrophic lateral sclerosis (ALS), a neurodegenerative disease that affects motor neurons.

Next-Generation Drug Development Recursion's approach to drug development is characterized by its speed and efficiency. By leveraging AI, the company can accelerate the discovery process, identify novel targets, and design therapies that are tailored to individual patients. This next-generation approach has the potential to transform the pharmaceutical industry and improve the lives of countless patients.

Conclusion Recursion Pharmaceuticals is a leading company in the field of precision medicine. By harnessing the power of AI and machine learning, Recursion is revolutionizing drug discovery and developing life-changing therapies for patients with rare and undruggable diseases. The company's commitment to scientific innovation and patient-centric research holds great promise for the future of healthcare.

Business Model of Recursion Pharmaceuticals

Recursion Pharmaceuticals is a clinical-stage biotechnology company that utilizes artificial intelligence (AI) and machine learning (ML) to advance drug discovery and development. Its business model revolves around:

• AI-Powered Drug Discovery: Recursion uses its AI platform to analyze vast amounts of biological data, identifying new targets for drug development.
• Integrated Drug Development: The company's process combines AI with experimental validation, allowing it to prioritize and develop promising drug candidates in-house.
• Precision Medicine: Recursion's AI-driven approach enables personalized medicine by identifying patient subgroups with specific disease characteristics.

Advantages over Competitors

Recursion Pharmaceuticals possesses several advantages that set it apart from its competitors:

• Comprehensive Data Platform: The company has built a proprietary data platform that integrates multiple data sources, including patient data, cell-based assays, chemical structures, and clinical outcomes.
• AI Expertise: Recursion's team of AI experts leverages deep learning, natural language processing, and other advanced techniques to identify disease mechanisms and predict drug efficacy.
• End-to-End Development: Unlike many biotech companies that focus solely on early-stage drug discovery, Recursion conducts drug development in-house, enabling efficient and seamless development processes.
• Precision Medicine Approach: The company's AI algorithms enable the identification of patient subgroups with distinct disease characteristics, leading to targeted therapies and improved patient outcomes.
• Proprietary Technology: Recursion has developed a suite of proprietary technologies, including its AI platform, cell-based assays, and data analytics tools, giving it a competitive edge.

These advantages allow Recursion to accelerate drug discovery, enhance the efficiency of clinical trials, and ultimately bring new and more effective treatments to market for patients facing complex diseases.

Outlook of Recursion Pharmaceuticals

Business Model:

• Recursion Pharmaceuticals is a clinical-stage biotechnology company focused on discovering and developing new therapies for complex diseases.
• The company uses a proprietary drug discovery platform called Recursion OS, which combines machine learning, robotics, and biology to identify potential drug targets and develop new therapies.
• Recursion OS leverages a massive database of molecular and phenotypic data to identify disease mechanisms and predict therapeutic outcomes.

Pipeline:

• Recursion Pharmaceuticals has a robust clinical pipeline with multiple programs in various stages of development:
  • Phase 3:
    • RC-18: For the treatment of IPF (idiopathic pulmonary fibrosis)
  • Phase 2:
    • RC-18: For the treatment of PAH (pulmonary arterial hypertension)
    • RC-121: For the treatment of PNH (paroxysmal nocturnal hemoglobinuria)
  • Earlier Stages:
    • Several programs targeting cancer, metabolic diseases, and neurodegenerative disorders

Technology:

• Recursion OS is a key differentiator for the company:
  • It enables the rapid identification and validation of new drug targets.
  • The platform reduces the cost and time required for drug discovery.
  • It provides a unique competitive advantage over traditional drug discovery methods.

Collaborations:

• Recursion Pharmaceuticals has strategic collaborations with major pharmaceutical companies, including:
  • Roche
  • Takeda
  • Bayer
• These partnerships provide funding, expertise, and access to broader patient populations.

Financials:

• Recursion Pharmaceuticals is a publicly traded company (NASDAQ: RXRX).
• The company has a strong financial position with over $2 billion in cash and investments.
• Revenue is expected to grow significantly as the company's pipeline advances and new therapies are commercialized.

Market Opportunity:

• The global market for complex disease therapies is vast and growing.
• Recursion Pharmaceuticals is targeting unmet medical needs with its novel drug discovery platform.
• The company's potential to disrupt the pharmaceutical industry is significant.

Risks:

• Drug development is a high-risk endeavor, and there is no guarantee that any of Recursion Pharmaceuticals' pipeline candidates will be successful.
• The company's heavy reliance on its proprietary technology could limit its flexibility and adaptability.
• Competition from established pharmaceutical companies is a potential threat.

Overall Outlook:

Recursion Pharmaceuticals has a promising outlook based on its innovative technology, robust pipeline, and strong financial position. The company's potential to revolutionize drug discovery and bring new therapies to patients is significant. However, the inherent risks associated with drug development should be considered.

Companies Similar to Recursion Pharmaceuticals

1. Exscientia

• Homepage: https://www.exscientia.ai/
• Review: Exscientia specializes in artificial intelligence-driven drug discovery and development. Customers appreciate its innovative approach, rapid development timelines, and focus on precision medicine.

2. Insilico Medicine

• Homepage: https://insilico.com/
• Review: Insilico Medicine uses AI and machine learning to accelerate drug discovery and clinical trials. Its platform enables researchers to identify novel targets, design new drugs, and predict patient outcomes.

3. Atomwise

• Homepage: https://atomwise.com/
• Review: Atomwise leverages AI to identify new drug molecules. Its technology enables customers to explore vast chemical libraries and predict the efficacy and safety of potential candidates.

4. Schrodinger

• Homepage: https://www.schrodinger.com/
• Review: Schrodinger offers computational chemistry and molecular simulation software for drug discovery. Its tools provide insights into the structure and dynamics of proteins, aiding in target identification and lead optimization.

5. Certagen

• Homepage: https://www.certagen.com/
• Review: Certagen provides comprehensive genomic profiling services for cancer research and clinical diagnostics. Its focus on precision oncology helps customers identify personalized treatments and monitor patient response.

6. Roche

• Homepage: https://www.roche.com/
• Review: Roche is a global pharmaceutical giant with a strong presence in drug discovery and development. Customers value its extensive portfolio of innovative medicines and its commitment to research and development.

7. Pfizer

• Homepage: https://www.pfizer.com/
• Review: Pfizer is another leading pharmaceutical company known for its research-based approach. Customers appreciate its wide range of products, including vaccines, oncology drugs, and anti-infective agents.

History of Recursion Pharmaceuticals:

2013:

• Co-founded by Chris Gibson, Ryan Springett, and Matt Jones in Salt Lake City, Utah.
• Initially focused on developing software for drug discovery.

2015:

• Pivoted to focus on using machine learning and artificial intelligence (AI) for drug discovery and development.
• Raised $10 million in Series A funding.

2016:

• Established a collaboration with Janssen Pharmaceuticals to develop novel therapeutics for neurological diseases.
• Raised $26 million in Series B funding.

2017:

• Expanded into oncology and rare diseases.
• Acquired ChemBridge's compound library, significantly increasing its chemical diversity.

2018:

• Raised $210 million in Series C funding.
• Announced a partnership with Roche to develop and commercialize precision oncology therapies.

2019:

• Published a study in Nature Biotechnology demonstrating the potential of its AI platform to identify new drug candidates.
• Entered into a collaboration with Bristol-Myers Squibb to develop novel cancer immunotherapies.

2020:

• Raised $450 million in Series D funding, making it one of the most well-funded private biotech companies.
• Announced a partnership with Novartis to discover and develop novel treatments for neurological diseases.

2021:

• Went public through an initial public offering (IPO) on Nasdaq, raising $2.3 billion.
• Announced a collaboration with Pfizer to develop novel therapeutics for rare diseases.

2022:

• Expanded its presence in China with the establishment of a subsidiary in Shanghai.
• Announced a partnership with Merck to leverage its AI platform for drug discovery and development.

Present:

• Recursion Pharmaceuticals continues to advance its AI-driven drug discovery platform and has multiple clinical-stage drug candidates in development.
• The company is recognized as a leader in the field of precision medicine and has established partnerships with numerous pharmaceutical giants.

2020

• February: Recursion Pharmaceuticals raises $450 million in Series E funding.
• May: Recursion Pharmaceuticals announces a collaboration with Roche to discover and develop new therapies for neurodegenerative diseases.
• October: Recursion Pharmaceuticals announces the launch of its Machine Biology Platform for AI-powered drug discovery.

2021

• April: Recursion Pharmaceuticals files for an initial public offering (IPO).
• June: Recursion Pharmaceuticals goes public on the Nasdaq under the ticker symbol "RXRX."
• October: Recursion Pharmaceuticals announces a collaboration with Bayer to discover and develop new therapies for heart failure and diabetic kidney disease.

2022

• January: Recursion Pharmaceuticals announces a collaboration with Amgen to discover and develop new therapies for cancer and autoimmune diseases.
• March: Recursion Pharmaceuticals announces the enrollment of the first patient in its Phase 2 clinical trial of Recursion RT1 for the treatment of amyotrophic lateral sclerosis (ALS).
• August: Recursion Pharmaceuticals acquires Cellarity, a company focused on using AI to develop new cell therapies.
• November: Recursion Pharmaceuticals announces a collaboration with Bristol Myers Squibb to discover and develop new therapies for solid tumors.

Recent Timelines

• December 2022: Recursion Pharmaceuticals presents positive data from its Phase 2 clinical trial of Recursion RT1 for the treatment of ALS at the American Academy of Neurology (AAN) Annual Meeting.
• January 2023: Recursion Pharmaceuticals announces the appointment of Dr. Katrine Bosley as its new Chief Executive Officer (CEO).
• February 2023: Recursion Pharmaceuticals presents data from its Machine Biology Platform at the Pacific Symposium on Biocomputing (PSB).

Recursion Pharmaceuticals: Revolutionizing Drug Discovery with AI and Machine Learning

As a patient advocate and healthcare enthusiast, I have been eagerly following the groundbreaking work of Recursion Pharmaceuticals. Their transformative approach to drug discovery has left an indelible mark on the industry, offering immense promise for the future of medicine.

Recursion has harnessed the power of artificial intelligence (AI) and machine learning to accelerate drug development and address unmet medical needs. Their AI-driven platform empowers them to screen vast libraries of compounds, identify novel targets, and predict drug efficacy with unprecedented precision.

One of Recursion's key strengths lies in its massive biobank of cell lines and patient data. This invaluable resource allows them to study the intricacies of disease at the cellular level, identifying molecular pathways that contribute to illness. By leveraging AI to analyze this vast database, Recursion can pinpoint potential drug candidates with remarkable speed and efficiency.

Furthermore, Recursion's commitment to diversity and inclusion is commendable. They recognize that a diverse team of scientists, engineers, and healthcare professionals brings unique perspectives and expertise to the drug discovery process. This inclusivity fosters innovation and ensures that the benefits of new medicines extend to all patients, regardless of their background.

The company's culture of innovation and collaboration is evident in its partnerships with leading pharmaceutical companies and academic institutions. By working together, Recursion leverages the expertise of the broader scientific community to enhance its research capabilities and accelerate the delivery of life-saving therapies.

In conclusion, Recursion Pharmaceuticals stands as a beacon of progress in the pharmaceutical industry. Their AI-driven platform, vast biobank, and commitment to diversity are revolutionizing drug discovery, offering unprecedented hope for patients with unmet medical needs. I highly recommend this company to anyone seeking a leader in the field of precision medicine and a brighter future for healthcare.

Unlock the Future of Precision Medicine with Recursion Pharmaceuticals

Introduction:

Recursion Pharmaceuticals is a cutting-edge biotechnology company transforming the healthcare landscape through the power of artificial intelligence (AI) and machine learning (ML). With our innovative platform, we are unlocking unprecedented insights into human biology and revolutionizing drug discovery and development.

Our Vision:

At Recursion Pharmaceuticals, we envision a future where every patient has access to personalized and effective treatments. By harnessing the vastness of biological data, we aim to accelerate the identification and development of novel therapies that target the underlying causes of disease.

Our Technology:

Recursion's proprietary Atlas platform encompasses a unique combination of AI/ML algorithms, high-throughput data generation, and expert human knowledge. This powerful system allows us to:

• Analyze vast amounts of biological data: We leverage multiple data types, including cell biology, image analysis, and genetic information, to build a comprehensive understanding of disease mechanisms.
• Identify hidden patterns and relationships: Our AI/ML algorithms uncover subtle correlations and dependencies within the vast biological data, revealing potential therapeutic targets that have eluded traditional research methods.
• Accelerate drug discovery: By leveraging our advanced computational capabilities, we significantly reduce the time and cost associated with drug discovery, enabling us to rapidly develop and test new drug candidates.

Our Pipeline:

Recursion's pipeline consists of a diverse portfolio of drug candidates targeting a wide range of diseases, including:

• Cancer
• Neurological disorders
• Metabolic diseases
• Rare diseases

Our Commitment:

We believe that our transformative technology has the potential to create a paradigm shift in healthcare. We are committed to:

• Patient-centricity: Developing therapies that address unmet medical needs and improve patient outcomes.
• Scientific rigor: Upholding the highest scientific standards to ensure the accuracy and validity of our research.
• Collaboration: Partnering with leading scientists, clinicians, and industry experts to advance the frontiers of drug discovery.

Join the Revolution:

Visit our website at https://recursionpharma.com to learn more about our groundbreaking work and how we are shaping the future of medicine. By connecting with us, you will gain access to the latest scientific advancements, upcoming events, and insights into the future of AI-driven drug discovery.

Together, let us unlock the potential of human biology and transform healthcare for generations to come.

Main Suppliers of Recursion Pharmaceuticals

Recursion Pharmaceuticals, a biotechnology company headquartered in Salt Lake City, Utah, partners with various suppliers to support its research and development activities. Here are some of the key suppliers and their respective websites:

Equipment and Instrumentation

• Berkeley Lights: Berkeley Lights provides the company with its proprietary CellSight platform, which enables automated cell selection and analysis. (Website: https://www.berkeleylights.com/)
• Bio-Rad Laboratories: Bio-Rad provides Recursion Pharmaceuticals with a range of reagents, instruments, and software for molecular biology research. (Website: https://www.bio-rad.com/)
• Fluidigm: Fluidigm supplies the company with its CyTOF mass cytometry system for high-dimensional single-cell analysis. (Website: https://www.fluidigm.com/)
• Illumina: Illumina provides Recursion Pharmaceuticals with its sequencing platforms and reagents for genomics and transcriptomics research. (Website: https://www.illumina.com/)
• Thermo Fisher Scientific: Thermo Fisher Scientific supplies the company with a wide range of equipment, including instruments for cell culture, flow cytometry, and molecular diagnostics. (Website: https://www.thermofisher.com/)

Reagents and Chemicals

• Fisher Scientific: Fisher Scientific provides Recursion Pharmaceuticals with a variety of chemicals, reagents, and consumables for laboratory research. (Website: https://www.fishersci.com/)
• Sigma-Aldrich: Sigma-Aldrich provides the company with a comprehensive catalog of biochemicals, antibodies, and other research reagents. (Website: https://www.sigmaaldrich.com/)
• VWR International: VWR International supplies the company with laboratory supplies and chemicals, including glassware, plastics, and solvents. (Website: https://us.vwr.com/)

Data Analytics and Software

• Amazon Web Services (AWS): AWS provides Recursion Pharmaceuticals with cloud computing services and analytics tools to support its data-driven research. (Website: https://aws.amazon.com/)
• Google Cloud: Google Cloud provides the company with cloud-based machine learning and artificial intelligence tools for drug discovery and data analysis. (Website: https://cloud.google.com/)
• Microsoft Azure: Microsoft Azure provides Recursion Pharmaceuticals with cloud computing services and data analytics tools to support its research and operations. (Website: https://azure.microsoft.com/)

Other Services

• Covance: Covance provides Recursion Pharmaceuticals with laboratory animal models and testing services to support its drug development efforts. (Website: https://www.covance.com/)
• Charles River Laboratories: Charles River Laboratories provides the company with laboratory animal models and preclinical testing services. (Website: https://www.criver.com/)
• Envigo: Envigo provides Recursion Pharmaceuticals with laboratory animal models and research support services. (Website: https://www.envigo.com/)

It is important to note that this list may not be exhaustive and Recursion Pharmaceuticals may partner with other suppliers for specific research or business needs.

Recursion Pharmaceuticals' Main Customer (Downstream Company)

Recursion Pharmaceuticals is a clinical-stage biotechnology company that utilizes artificial intelligence (AI) and machine learning to discover and develop drugs for various diseases. While the company does not have a single dominant customer, it collaborates with a range of pharmaceutical and biotechnology companies, research institutions, and government agencies.

Pharmaceutical and Biotechnology Companies:

Recursion Pharmaceuticals has established partnerships with several major pharmaceutical and biotechnology companies to advance its drug development programs. These partnerships provide Recursion with access to clinical trial sites, manufacturing capabilities, and regulatory expertise. Some of the key downstream companies include:

• AstraZeneca: A global pharmaceutical company focused on developing and commercializing innovative medicines.
• Roche: A multinational healthcare company involved in the research, development, and distribution of pharmaceuticals and diagnostics.
• Bayer: A global life sciences company engaged in the fields of healthcare, agriculture, and materials science.
• Celgene: A biopharmaceutical company specializing in the treatment and management of cancer, immunologic, and inflammatory diseases.
• Merck & Co., Inc.: A global healthcare company focused on developing and delivering innovative and accessible therapies.

Research Institutions:

Recursion Pharmaceuticals also collaborates with academic and research institutions to access expertise in specific disease areas and validate its drug discovery platform. Some of the key research partners include:

• University of California, San Francisco (UCSF): A world-renowned institution known for its medical research and clinical innovation.
• Stanford University: A leading research university known for its contributions to medical science and biomedical engineering.
• Mount Sinai School of Medicine: A renowned medical center focused on research and clinical care in a wide range of disciplines.
• Broad Institute: A biomedical research institute dedicated to advancing the understanding and treatment of human diseases.
• Dana-Farber Cancer Institute: A world-leading cancer research and treatment center.

Government Agencies:

Recursion Pharmaceuticals collaborates with government agencies to receive funding for its research and development programs. These agencies provide grants and contracts that support the company's efforts to advance its drug discovery pipeline. Some of the key government partners include:

• National Institutes of Health (NIH): The primary government agency responsible for funding medical research in the United States.
• Defense Advanced Research Projects Agency (DARPA): A research and development agency within the U.S. Department of Defense.
• National Science Foundation (NSF): An independent federal agency that supports fundamental research and education in all fields of science and engineering.

Key Revenue Stream: Subscription Fees

Recursion Pharmaceuticals generates revenue primarily through subscription fees paid by pharmaceutical and biotechnology companies that use its AI-powered drug discovery platform, Recursion Operating System (ROS). These fees provide access to ROS's capabilities for target discovery, assay development, data analysis, and molecule generation.

Estimated Annual Revenue

Recursion Pharmaceuticals does not publicly disclose its annual revenue from subscription fees, but industry analysts estimate that it could be in the range of $200 million to $300 million.

Additional Revenue Streams

Recursion Pharmaceuticals also has the potential to generate revenue from:

1. Licensing Fees: Recursion may license its proprietary technology or drug candidates to other companies, resulting in upfront payments and royalties on sales.

2. Research and Development Partnerships: Recursion can collaborate with pharmaceutical companies on joint drug development programs, which may include upfront payments, milestones, and cost-sharing arrangements.

3. Drug Sales: If Recursion's drug discovery platform successfully identifies and develops novel therapies, the company may pursue direct drug sales or out-licensing agreements to commercialize these therapies.

4. Government Funding: Recursion may receive grant funding from government agencies to support its research and development activities.

Note: The estimated annual revenue from subscription fees is based on industry estimates and may not represent Recursion Pharmaceuticals' actual revenue. The company's financial performance can fluctuate depending on factors such as market conditions, customer acquisition, and the successful development of its drug discovery platform.

Key Partners of Recursion Pharmaceuticals

Recursion Pharmaceuticals has partnered with various organizations to advance its drug discovery and development efforts. Here are some of the key partners:

1. Samsung Electronics

• Website: https://www.samsung.com/us/
• Collaboration: Recursion and Samsung have formed a strategic partnership to develop and commercialize AI-powered drug discovery and development technologies. Samsung provides Recursion with access to its high-performance computing resources, which enables Recursion to scale its AI capabilities.

2. Roche

• Website: https://www.roche.com/en/
• Collaboration: Recursion has a collaboration agreement with Roche to discover and develop novel drugs for neurodegenerative diseases. Roche provides Recursion with access to its expertise in neuroscience and translational medicine, while Recursion contributes its AI-powered drug discovery platform.

3. Bayer

• Website: https://www.bayer.com/en/
• Collaboration: Recursion and Bayer have entered into a multi-year research collaboration to identify and develop new treatments for cardiovascular and metabolic diseases. Bayer contributes its expertise in these therapeutic areas, while Recursion brings its AI-based drug discovery capabilities.

4. Amgen

• Website: https://www.amgen.com/
• Collaboration: Recursion has established a partnership with Amgen to discover and develop novel drugs for autoimmune diseases. Amgen provides Recursion with access to its extensive knowledge in immunology and autoimmune drug development.

5. Takeda Pharmaceutical Company

• Website: https://www.takeda.com/en-us/
• Collaboration: Recursion has a multi-year collaboration agreement with Takeda to identify and develop novel treatments for gastrointestinal diseases. Takeda contributes its deep understanding of gut biology and gastrointestinal disorders, while Recursion utilizes its AI-powered drug discovery platform.

6. Genentech

• Website: https://www.gene.com/
• Collaboration: Recursion and Genentech, a member of the Roche Group, have entered into a collaboration to discover and develop new drugs for cancer treatment. Genentech provides Recursion with its expertise in oncology and cancer drug development, while Recursion contributes its AI-based drug discovery platform.

7. Vertex Pharmaceuticals

• Website: https://www.vrtx.com/
• Collaboration: Recursion has a partnership with Vertex to discover and develop new treatments for cystic fibrosis and other rare genetic diseases. Vertex contributes its knowledge of cystic fibrosis and other genetic diseases, while Recursion leverages its AI-powered drug discovery capabilities.

8. AstraZeneca

• Website: https://www.astrazeneca.com/
• Collaboration: Recursion and AstraZeneca have a broad collaboration to discover, develop, and commercialize novel drugs for a range of therapeutic areas, including oncology, cardiovascular, and metabolic diseases. AstraZeneca provides Recursion with access to its extensive clinical development and commercialization capabilities.

9. Eli Lilly and Company

• Website: https://www.lilly.com/
• Collaboration: Recursion has a partnership with Eli Lilly to discover and develop new treatments for diabetes and other metabolic diseases. Eli Lilly contributes its expertise in diabetes and metabolic disorders, while Recursion brings its AI-based drug discovery platform.

10. Novartis

• Website: https://www.novartis.com/
• Collaboration: Recursion has a collaboration with Novartis to discover and develop novel drugs for neurodegenerative diseases. Novartis provides Recursion with access to its expertise in neurodegenerative diseases and drug development, while Recursion contributes its AI-powered drug discovery capabilities.

Key Cost Structure of Recursion Pharmaceuticals

Recursion Pharmaceuticals is a clinical-stage biotechnology company that is developing precision medicines for complex diseases. The company's key cost structure includes the following:

• Research and development (R&D): This is the company's largest cost, and it includes the cost of preclinical and clinical research, as well as the development of manufacturing processes. In 2021, Recursion's R&D expenses were $253.6 million.
• Selling, general, and administrative (SG&A): This includes the cost of marketing, sales, and general administration. In 2021, Recursion's SG&A expenses were $82.9 million.
• Other expenses: This includes the cost of interest expense, depreciation and amortization, and other non-operating expenses. In 2021, Recursion's other expenses were $10.3 million.

Estimated Annual Cost

Recursion's total operating expenses in 2021 were $346.8 million. This is expected to increase significantly in the coming years as the company continues to invest in its R&D efforts. Recursion has guided for operating expenses to be in the range of $450 million to $500 million in 2022.

Cost Drivers

The key cost drivers for Recursion are:

• Pipeline size: Recursion has a large and growing pipeline of drug candidates, which requires significant investment in R&D.
• Complexity of diseases: The company is focused on developing treatments for complex diseases, which can be more expensive to develop than treatments for less complex diseases.
• Manufacturing costs: Recursion is responsible for manufacturing its own drug products, which can be a significant cost.

Cost Optimization

Recursion is taking steps to optimize its cost structure, including:

• Investing in technology: The company is using artificial intelligence and other technologies to improve the efficiency of its R&D process.
• Outsourcing: Recursion is outsourcing some of its manufacturing and other operations to reduce costs.
• Partnering with other companies: Recursion is partnering with other companies to share the cost of developing and commercializing its drugs.

By taking these steps, Recursion is working to ensure that it has the resources it needs to continue developing precision medicines for complex diseases.

Sales Channels

Recursion Pharmaceuticals primarily generates revenue through partnerships with pharmaceutical and biotechnology companies. The company utilizes a combination of direct sales and collaborations to commercialize its products and services.

Estimated Annual Sales

Recursion Pharmaceuticals is a privately held company and does not publicly disclose its annual sales figures. However, based on available information, industry estimates, and analyst reports, it is estimated that the company's annual sales are in the range of:

• 2022: $50-$100 million
• 2023: $100-$200 million

It's important to note that these estimates are subject to change and may vary depending on market conditions, the company's growth trajectory, and the success of its partnerships.

Details of Sales Channels

1. Direct Sales:

• Recursion Pharmaceuticals has a dedicated sales team that works directly with potential partners.
• The team engages in presentations, product demonstrations, and technical discussions to educate customers about the company's technology and solutions.

2. Collaborations:

• Recursion Pharmaceuticals partners with pharmaceutical and biotechnology companies on a variety of projects, including:
  • Drug discovery and development
  • Target identification and validation
  • Biomarker discovery and development
• Through these collaborations, Recursion Pharmaceuticals receives upfront payments, milestone payments, and/or royalties on commercialized products.

3. Licensing Agreements:

• Recursion Pharmaceuticals may license its technology or specific drug candidates to partners.
• This provides the company with upfront payments and potential royalties on future sales.

4. Consulting Services:

• Recursion Pharmaceuticals offers consulting services related to drug discovery, data analysis, and AI applications.
• These services generate revenue through consulting fees and project-based contracts.

Key Partnerships

Some of Recursion Pharmaceuticals' key partnerships include:

• AbbVie
• Amgen
• Genentech
• Roche
• Vertex Pharmaceuticals

Customer Segments of Recursion Pharmaceuticals

Recursion Pharmaceuticals is a clinical-stage biotechnology company that is pioneering a novel approach to drug discovery and development. The company's platform combines machine learning, artificial intelligence, and high-throughput experimentation to identify and validate new drug targets and develop new therapies for a wide range of diseases.

Recursion's customer segments include:

• Pharmaceutical companies: Recursion partners with pharmaceutical companies to discover and develop new drugs for a variety of diseases. The company's platform can be used to identify and validate new drug targets, as well as to develop new therapies.
• Biotechnology companies: Recursion also partners with biotechnology companies to discover and develop new drugs. The company's platform can be used to identify and validate new drug targets, as well as to develop new therapies.
• Academic research institutions: Recursion collaborates with academic research institutions to discover and develop new drugs. The company's platform can be used to identify and validate new drug targets, as well as to develop new therapies.
• Government agencies: Recursion works with government agencies to discover and develop new drugs for a variety of diseases. The company's platform can be used to identify and validate new drug targets, as well as to develop new therapies.

Estimated Annual Sales

Recursion Pharmaceuticals is a private company, so it does not disclose its financial information. However, based on the company's partnerships with pharmaceutical companies, biotechnology companies, academic research institutions, and government agencies, it is estimated that Recursion's annual sales are in the range of $100 million to $500 million.

Recursion Pharmaceuticals

Value Proposition

Recursion Pharmaceuticals is a clinical-stage biotechnology company dedicated to discovering and developing novel drugs for complex diseases by leveraging advances in artificial intelligence (AI), machine learning, and high-throughput experimental biology. Its unique drug discovery platform combines:

1. Massive, Diverse Data Generation:

• Recursion operates one of the largest datasets in the industry, with over 100 trillion data points collected from multiple modalities:
  • Genomics (DNA and RNA sequencing)
  • Proteomics (protein expression)
  • Cellular Phenotyping
  • Disease Models

2. Machine Learning and AI Algorithms:

• Recursion employs sophisticated machine learning algorithms and AI techniques to analyze this vast data, identify patterns, and predict disease mechanisms.
• These algorithms are trained on datasets encompassing various disease areas, cell types, and patient cohorts.

3. Automated Experimental Biology:

• Recursion has developed automated laboratory systems that perform high-throughput experiments on millions of samples simultaneously.
• These experiments involve:
  • Cell-based assays
  • Small molecule screening
  • CRISPR-based gene editing

Advantages and Benefits:

1. Faster Drug Discovery:

• AI-enabled data analysis and automated experimentation accelerate the drug discovery process.
• Recursion can screen thousands of compounds in parallel and rapidly identify promising candidate molecules with higher precision.

2. Enhanced Drug Efficacy:

• By leveraging its massive dataset, Recursion can identify novel targets and disease mechanisms that were previously unknown.
• This leads to the development of highly specific and effective drugs that target the underlying causes of diseases.

3. Reduced Development Costs:

• The automation and efficiency of Recursion's platform reduce costs associated with traditional drug discovery methods.
• Fewer false starts and a higher success rate in clinical trials result in reduced overall development expenses.

4. Improved Patient Outcomes:

• By discovering novel treatments for complex diseases, Recursion aims to improve patient outcomes and quality of life.
• Its focus on precision medicine ensures that treatments are tailored to individual patients' unique needs.

Target Diseases:

Recursion is currently developing drugs for a wide range of indications, including:

• Cancer
• Rare diseases
• Neurodegenerative disorders
• Inflammatory diseases

Future Outlook:

Recursion Pharmaceuticals is at the forefront of transformative drug discovery. Its AI-driven platform holds promise for accelerating the development of life-changing treatments for complex and incurable diseases. By continuing to innovate and expand its capabilities, Recursion aims to revolutionize the pharmaceutical industry and improve the lives of millions of patients weltweit.

Recursion Pharmaceuticals: Risk Assessment

Recursion Pharmaceuticals is a clinical-stage biotechnology company focused on drug discovery and development for rare diseases. While the company has shown promise with its platform and pipeline, there are several risks associated with investing in Recursion.

1. Scientific and Technological Risks

• Platform limitations: Recursion's platform relies heavily on artificial intelligence (AI) and machine learning to identify potential drug targets and develop therapies. While AI has shown promise in drug discovery, it is still a relatively new technology with limitations. There is a risk that Recursion's platform may not be able to consistently identify effective drug targets or develop successful therapies.
• Preclinical and clinical risks: Recursion's drug candidates are still in the early stages of development. There is a significant risk that preclinical and clinical trials will fail, or that the therapies will not be safe or effective in humans.
• Competition: Recursion faces competition from other biotechnology companies, both large and small, in the field of drug discovery and development. There is a risk that competitors may develop more effective therapies or bring products to market faster than Recursion.

2. Financial Risks

• Cash flow and expenses: Recursion has incurred significant operating losses since its inception and is expected to continue to do so for the foreseeable future. The company may need to raise additional capital to fund its operations and clinical trials, which could dilute existing shareholders.
• Reimbursement risks: Recursion's therapies are intended to treat rare diseases, which may limit their commercial potential. There is a risk that payers may not reimburse the cost of the company's therapies, or that reimbursement may not be sufficient to cover the costs of development and production.

3. Legal and Regulatory Risks

• Intellectual property: Recursion's platform and pipeline are protected by patents. However, there is a risk that competitors may challenge the validity of the company's patents or develop workarounds.
• Regulatory compliance: Recursion is subject to extensive regulatory oversight by the FDA and other government agencies. There is a risk that the company may fail to comply with these regulations, which could result in delays or even termination of clinical trials.

4. Management and Organizational Risks

• Key personnel: Recursion's success depends heavily on the expertise and experience of its management team. There is a risk that key personnel may leave the company or become unavailable, which could disrupt the company's operations.
• Corporate governance: Recursion's corporate governance practices may not be sufficient to protect the interests of shareholders. There is a risk that the company's management may make decisions that are not in the best interests of shareholders.

5. Market and Economic Risks

• Stock market volatility: Recursion's stock price is subject to market volatility, which could result in significant fluctuations in the value of your investment.
• Economic conditions: Recursion's business may be affected by economic downturns, which could reduce demand for its therapies or make it more difficult to raise capital.

Overall, while Recursion Pharmaceuticals has shown significant promise, there are a number of risks associated with investing in the company. Investors should carefully consider these risks before making any investment decisions.