Entered into definitive agreement to combine
with Recursion to create a global technology-enabled drug discovery
leader with end-to-end capabilities
Acquired full rights to GTAEXS617 (CDK7
inhibitor), with initial Phase I monotherapy data expected in
2H24
Launched AWS AI-powered platform to advance
drug discovery
LSD1 and MALT1 inhibitor programmes continue to
progress towards the clinic, on track for 2H24 IND/CTA
submissions
Exscientia plc (Nasdaq: EXAI): Recent advancements in the
Company’s pipeline, collaborations and operations, as well as
financial results for the second quarter and first half 2024, are
summarised below.
“Last week, we announced that Exscientia entered into a
definitive agreement to combine with Recursion Pharmaceuticals,”
said David Hallett, Ph.D., interim Chief Executive Officer and
Chief Scientific Officer of Exscientia. “When we bring together our
platforms at closing, our world class scientists and Exscientia’s
best-in-class focused precision oncology internal pipeline with
Recursion’s first-in-class focused pipeline, we believe we will be
able to discover better drugs for patients faster and at a lower
cost.”
“In the first half of 2024, we believe we have made important
progress across our AI-powered pipeline and progress towards
autonomous drug design as well as deepening our technology and
pharma partnerships,” continued David Hallett, Ph.D. “We made the
strategic decision to fully invest in our CDK7 inhibitor GTAEXS617
(‘617) by acquiring full rights to the programme, which we believe
is highly differentiated and demonstrates the power of our design
capabilities. We look forward to sharing topline data later this
year.”
Key Business Updates
Transaction with Recursion
- Earlier this month, Exscientia entered into a definitive
agreement to combine with Recursion Pharmaceuticals in a
transaction that will create a company positioned to leverage the
latest life sciences and technology advances to deliver better,
novel treatments to patients, faster and at a lower cost relative
to traditional drug discovery and development methods
- This combination will bring together Recursion’s scaled biology
exploration and translational capabilities with Exscientia’s
precision chemistry design and small molecule automated synthesis
capabilities to create, at closing, a leading technology-first,
end-to-end drug discovery platform
Internal Precision Oncology Pipeline
- The Company continues to enrol patients with advanced solid
tumours in its Phase 1/2 ELUCIDATE trial evaluating ‘617, a
potential best-in-class CDK7 inhibitor
- In July, the Company announced that it reached an agreement to
acquire the full rights to ‘617 from its partner GT Apeiron - with
GT Apeiron retaining an interest via an increased ownership stake
in Exscientia
- The Company remains on track to announce topline
pharmacokinetic, pharmacodynamic and safety data from the dose
escalation phase of ELUCIDATE in the second half of this year
- Exscientia expects to transition to the dose expansion phase of
ELUCIDATE in the second half of this year or early next year,
starting with the evaluation of ‘617 in HR+/HER2- breast cancer in
combination with a selective estrogen receptor degrader (SERD)
- EXS74539 (‘539), Exscientia’s highly differentiated, brain
penetrant LSD1 inhibitor, continues to advance towards the clinic,
with an IND expected to be submitted later this year. The Company
expects to initiate a Phase 1/2 clinical trial in early 2025
- Exscientia remains on track to submit a CTA for EXS73565
(‘565), the Company’s potential best-in-class MALT1 inhibitor, in
the second half of 2024. The Company expects to initiate a Phase
1/2 clinical trial of ‘565 in B-cell malignancies, including
chronic lymphocytic leukaemia (CLL), in early 2025
Collaborations & Partnerships
- The Sanofi partnership, with a primary focus on immunology and
inflammation, continues to advance with multiple potential
near-term milestones
- Exscientia continues to make progress in its collaboration with
Merck KGaA, Darmstadt, Germany with multiple programmes already in
early discovery
- In July 2024 the Company announced a collaboration with READDI,
a non-profit biotechnology initiative funded by the National
Institute of Allergy and Infectious Disease (NIAID), to evaluate
and improve a range of AI-designed antiviral compounds for pandemic
preparedness
- Exscientia will use its generative AI capabilities to design
novel compounds to fight coronaviruses with READDI providing
antiviral expertise as well as funding testing and analyses
Drug Discovery Platform
- Exscientia announced the expansion of its work with Amazon Web
Services (AWS) to use the cloud provider’s artificial intelligence
and machine learning services to power its platform for end-to-end
drug discovery and automation
- Exscientia’s state-of-the-art platform, built using AWS
technologies, integrates generative AI drug design and robotic lab
automation to further accelerate drug development at a lower
cost
- The Company’s closed loop “Design-Make-Test-Learn” facility is
now fully online and the first compounds have rolled off the
production line. These were designed using Exscientia’s proprietary
synthesis aware GenAI and manufactured and tested using the
Company’s in-house state-of-the-art automation facility
Leadership Updates
- Marie-Louise Fjallskog, M.D., Ph.D., was appointed interim
Chief Medical Officer, bringing extensive oncology drug development
expertise to execute robust clinical strategy on Exscientia’s
internal oncology pipeline
- Nicola Richmond, Ph.D., will be joining Exscientia in September
as Chief Scientist, AI. Holding a Ph.D. in mathematics, she brings
over 20 years’ experience operating at the intersection of drug
discovery and technology. Dr. Richmond will be leading efforts in
developing AI solutions for the Company’s drug discovery
efforts
Second Quarter and First Half 2024 Financial Results
For the convenience of the reader, the Company has translated
pound sterling amounts to U.S. dollars at the rate of £1.000 to
$1.2640, which was the noon buying rate of the Federal Reserve Bank
of New York on June 28, 2024.
Revenue: Revenue for the three and six months ended June
30, 2024 was $5.6 million and $12.3 million, compared to $3.8
million and $11.1 million for the three and six months ended June
30 2023. The increase in revenue year over year was primarily due
to an increase in the number of active projects in the first half
of 2024 relative to the prior period.
Research and development expenses (R&D): R&D
expenses for the three and six months ended June 30, 2024 were
$31.7 million and $61.5 million respectively, as compared to $41.7
million and $83.9 million for the same period ended June 30, 2023.
The decrease in research and development expenses was primarily due
to cost reductions relating to pipeline prioritisation activities
implemented during the second half of 2023 and cost savings from
operational efficiencies.
General and administrative expenses (G&A): G&A
expenses for the three and six months ended June 30, 2024 were
$21.2 million and $25.6 million, respectively, or 34% and 24% of
total operating expenses. For the three months ended June 30, 2024,
G&A expenses increased by $6.5 million compared to the prior
year, primarily driven by current quarter severance and
termination-related costs totalling $7.5m relating to the cost
saving and efficiency measures announced in May 2024. For the six
months ended June 30, 2024, G&A expenses decreased by $2.9
million compared to the prior year due to credits totalling $7.5
million relating to amounts recognised in February 2024 on the
forfeiture of share options held by the Company’s prior CEO upon
his exit from the Company.
Cash inflows: For the second quarter 2024, Exscientia
received $1.4 million in cash inflows from its collaborations as
compared to $0.7 million during the second quarter 2023.
Net operating cash flow and cash balance: For the three
and six months ended June 30, 2024, net operating cash outflows
were $45.8 million and $84.8 million respectively, in comparison to
$52.2 million and $107.0 million for the three and six months ended
June 30, 2023. Cash, cash equivalents and short-term bank deposits
as of June 30, 2024 were $370.1 million, as compared to $458.9
million as of December 31, 2023 using the June 28, 2024 constant
currency rate.
SELECTED CONSOLIDATED STATEMENT OF OPERATIONS, CONSTANT CURRENCY
CONVERSION (unaudited) ($ millions, except per share data, at
the rate of £1.000 to $1.2640)
Three months ended June
30,
Six months ended June
30,
2024
2023
2024
2023
Revenue
5.6
3.8
12.3
11.1
Cost of sales
(9.8)
(7.9)
(19.2)
(18.6)
Research and development expenses
(31.7)
(41.7)
(61.5)
(83.9)
General and administrative expenses
(21.2)
(14.7)
(25.6)
(28.5)
Operating expenses
(62.7)
(64.3)
(106.3)
(131.0)
Foreign exchange (losses)/gains
0.1
(0.6)
1.2
(2.1)
Other income
7.6
2.3
9.1
5.6
Operating loss
(49.4)
(58.8)
(83.7)
(116.4)
Net finance income
4.5
5.0
9.0
9.1
Share of loss on joint ventures
(0.5)
(0.2)
(1.2)
(0.8)
Loss before taxation
(45.4)
(54.0)
(75.9)
(108.1)
Income tax (charge)/benefit
(0.3)
8.5
3.5
15.0
Loss for the period
(45.7)
(45.5)
(72.4)
(93.1)
Net loss per share
(0.36)
(0.37)
(0.57)
(0.75)
Weighted average shares outstanding
(basic and diluted)
126,594,358
123,748,524
126,285,033
123,504,575
SELECTED CONSOLIDATED BALANCE SHEET,
CONSTANT CURRENCY CONVERSION (unaudited)
($ millions, except per share data, at the
rate of £1.000 to $1.2640)
June 30, 2024
December 31, 2023
Cash, cash equivalents and short-term
deposits
370.1
458.9
Total assets
553.4
645.6
Total equity
374.2
449.7
Total liabilities
179.2
195.9
Total equity and liabilities
553.4
645.6
SELECTED CONSOLIDATED STATEMENT OF CASH
FLOWS, CONSTANT CURRENCY CONVERSION (unaudited)
($ millions, except per share data, at the
rate of £1.000 to $1.2640)
Six months ended June 30,
2024
Six months ended June 30,
2023
Net cash outflows from operating
activities
(84.8)
(107.0)
Net cash flows used in investing
activities
(65.1)
(85.6)
Net cash used in financing activities
(2.3)
(2.0)
Net decrease in cash and cash
equivalents
(152.2)
(194.6)
Exchange gain/(loss) on cash and cash
equivalents
0.4
(3.1)
Net decrease in cash, cash equivalents
and short-term bank deposits*
(88.8)
(133.6)
*
Includes both increases in short-term bank
deposits and foreign exchange gains/(losses) on cash and cash
equivalents
About Exscientia
Exscientia is a technology-driven drug design and development
company, committed to creating more effective medicines for
patients, faster. Exscientia combines precision design with
integrated experimentation, aiming to invent and develop the best
possible drugs in the most efficient manner. Operating at the
interfaces of human ingenuity, artificial intelligence (AI),
automation and physical engineering, we pioneered the use of AI in
drug discovery as the first company to progress AI-designed small
molecules into a clinical setting. We have developed an internal
pipeline focused on oncology, while our partnered pipeline extends
to many other therapeutic areas. By leading this new approach to
drug creation, we believe we can change the underlying economics of
drug discovery and rapidly advance the best scientific ideas into
medicines for patients.
For more information visit us on www.exscientia.com or follow us
on LinkedIn @ex-scientia and X @exscientiaAI.
Forward-Looking Statements
This press release contains certain forward-looking statements
within the meaning of the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995. Words such as
“anticipates,” “believes,” “expects,” “intends,” and “projects” or
similar expressions are intended to identify forward-looking
statements. These forward-looking statements, include statements
with regard to Exscientia’s expectations regarding: the initiation,
timing and progress of, and data collected during and reported
from, the Company’s and its partners’ clinical trials, as well as
expectations with respect to the outcome or benefit of such trials;
the progress of Exscientia’s collaborations and partnered
programmes; the onboarding of a new executive; and the closing of
the transaction contemplated by the agreement between the Company
and Recursion Pharmaceuticals, including the successful creation of
a combined company and the ability of such combined company to
provide patients with better novel medicines. Such statements are
subject to a number of risks, uncertainties and assumptions,
including those related to: the initiation, scope and progress of
Exscientia’s and its partners’ planned and ongoing preclinical
studies and clinical trials and ramifications for the cost thereof;
clinical, scientific, regulatory and technical developments; the
development and deployment of new technology and facilities; the
process of discovering, developing and commercialising product
candidates that are safe and effective for use as human
therapeutics and the endeavour of building a business around such
product candidates; and the process of creating a combined company
with Recursion Pharmaceuticals and subsequent activities by any
such combined company. In light of these risks and uncertainties,
and other risks and uncertainties that are described in the Risk
Factors section and other sections of Exscientia’s Annual Report on
Form 20-F, filed with the Securities and Exchange Commission (SEC)
on March 21, 2024, and other filings that Exscientia makes with the
SEC from time to time (which are available at
https://www.sec.gov/), the events and circumstances discussed in
such forward-looking statements may not occur, and Exscientia’s
actual results could differ materially and adversely from those
anticipated or implied thereby. Although Exscientia’s
forward-looking statements reflect the good faith judgement of its
management, these statements are based only on facts and factors
currently known by the Company. As a result, investors are
cautioned not to rely on these forward-looking statements.
Exscientia undertakes no obligation to publicly update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required
by law.
Additional Information and Where to Find It
The proposed transaction between Exscientia and Recursion will
become the subject of a joint proxy statement to be filed by
Exscientia and Recursion with the SEC. The joint proxy statement
will provide full details of the proposed combination and the
attendant benefits and risks, including the terms and conditions of
the scheme of arrangement and the other information required to be
provided to Exscientia’s shareholders under the applicable
provisions of the U.K. Companies Act 2006. This communication is
not a substitute for the joint proxy statement or any other
document that Exscientia or Recursion may file with the SEC or send
to their respective security holders in connection with the
proposed combination. Security holders are urged to read the
definitive joint proxy statement and all other relevant documents
filed with the SEC or sent to Exscientia’s shareholders or
Recursion’s stockholders as they become available because they will
contain important information about the proposed combination.
All documents, when filed, will be available free of charge at the
SEC’s website (www.sec.gov). You may also obtain these documents by
contacting Exscientia’s Investor Relations department at
investors@exscientia.ai. This communication does not constitute an
offer to sell or the solicitation of an offer to buy any securities
or a solicitation of any vote or approval.
INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY
STATEMENT (WHICH WILL INCLUDE AN EXPLANATORY STATEMENT IN RESPECT
OF THE SCHEME OF ARRANGEMENT OF EXSCIENTIA, IN ACCORDANCE WITH THE
REQUIREMENTS OF THE U.K. COMPANIES ACT 2006) AND ANY OTHER RELEVANT
DOCUMENTS THAT MAY BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS
OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY
IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL
CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED COMBINATION.
Participants in the Solicitation
Exscientia, Recursion, and their respective directors and
executive officers may be deemed to be participants in any
solicitation of proxies in connection with the proposed combination
of the two companies.
Information about Exscientia’s directors and executive officers
is available in Exscientia’s Annual Report on Form 20-F dated March
21, 2024. Information about Recursion’s directors and executive
officers is available in Recursion’s proxy statement dated April
23, 2024, for its 2024 Annual Meeting of Stockholders. Other
information regarding the participants in the proxy solicitation
and a description of their direct and indirect interests, by
security holdings or otherwise, will be contained in the joint
proxy statement and all other relevant materials to be filed with
the SEC regarding the proposed combination when they become
available. Investors should read the joint proxy statement
carefully when it becomes available before making any voting or
investment decisions.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240815623767/en/
Investor Relations: Sara Sherman / Chinedu Okeke
investors@exscientia.ai
Media: David Keown media@exscientia.ai
Exscientia (NASDAQ:EXAI)
Gráfica de Acción Histórica
De Nov 2024 a Dic 2024
Exscientia (NASDAQ:EXAI)
Gráfica de Acción Histórica
De Dic 2023 a Dic 2024