- Initiated our Phase 2 clinical trial for the potential
treatment of familial adenomatous polyposis (FAP)
- Initiated our Phase 1 clinical trial for the potential
treatment of Clostridium difficile colitis
- Nominated a new clinical program in AXIN1/APC
mutant cancers with an initial focus on hepatocellular carcinoma
and ovarian cancer, for which a Phase 2 clinical trial is being
planned
- Raised gross proceeds of approximately $150 million in a private placement offering
SALT
LAKE CITY, Nov. 8, 2022 /PRNewswire/ -- Recursion
(Nasdaq: RXRX), the clinical-stage biotechnology company
industrializing drug discovery by decoding biology, today reported
business updates and financial results for its third quarter ending
September 30, 2022.
"We are excited to have initiated four clinical trials in the
past three quarters," said Chris
Gibson, Ph.D., Co-Founder & CEO at Recursion. "In
addition, our first clinical stage program discovered using our
mapping and navigating approach to biology was nominated as a
clinical stage program, with a Phase 2 clinical trial being planned
now. We believe that our consistency in advancing our internal
pipeline and transformational partnerships coupled with our
willingness to continuously evolve our platform to more completely
map and navigate biology and chemistry highlight Recursion as a
leader within technology-enabled drug discovery."
Summary of Business Highlights
- Internal Pipeline
-
- Cerebral Cavernous Malformation (CCM) (REC-994): In
March 2022, we announced the
initiation of our Phase 2 SYCAMORE clinical trial, which is a
double-blind, placebo-controlled safety, tolerability and
exploratory efficacy study of this drug candidate in 60
participants with CCM. At this time, we continue to actively enroll
participants.
- Neurofibromatosis Type 2 (NF2) (REC-2282): In
June 2022, we announced the
initiation of our Phase 2/3 POPLAR clinical trial, which is a
parallel group, two stage, randomized, multicenter study of this
drug candidate in approximately 90 participants with progressive
NF2-mutated meningiomas. At this time, we continue to
actively enroll participants.
- Familial Adenomatous Polyposis (FAP) (REC-4881): In
September 2022, we announced the
initiation of our Phase 2 TUPELO clinical trial, which is a
multicenter, randomized, double-blind, placebo-controlled two-part
clinical trial to evaluate efficacy, safety, and pharmacokinetics
of REC-4881 in patients with FAP.
- AXIN1/APC Mutant Cancers (REC-4881): In
October 2022, we announced the
nomination of REC-4881 for the potential treatment of
AXIN1/APC mutant cancers with an initial focus on
hepatocellular carcinoma and ovarian cancer. We have prioritized
resources to accelerate planning to initiate a Phase 2 trial. The
advancement of this program highlights our intent to focus our
internal pipeline on oncology and oncology-like opportunities.
- Clostridium difficile Colitis (REC-3964): In
September 2022, we announced the
initiation of our Phase 1 clinical trial, which is a first-in-human
protocol evaluating single and multiple doses of REC-3964 in
healthy volunteers and will assess the safety, tolerability and
pharmacokinetic profile of REC-3964.
- GM2 Gangliosidosis (REC-3599): Due to the
advancement of our program in AXIN1/APC mutant
cancers and the increasing number of oncology programs moving
towards the clinic, we deprioritized our GM2 gangliosidosis program
and redirected resources. We will make efforts to work with patient
foundations to transfer relevant scientific knowledge.
- Transformational Collaborations
-
- We continue to advance efforts to potentially discover new
therapeutics with our strategic partners in the areas of fibrotic
disease (Bayer) as well as neuroscience and a single indication in
gastrointestinal oncology (Roche and Genentech).
- Recursion OS
-
- Transcriptomics and Industrialized Validation: We
continue to build out our scaled transcriptomics platform which has
now been adopted into the research operating plans of the majority
of Recursion's active programs in order to drive validation, lead
selection, and optimization. We are developing an end-to-end
industrialized validation process in order to translate phenomic
and transcriptomic insights from our maps of biology and
chemistry.
- InVivomics and Digital Tolerability: Digital
tolerability is a novel in vivo method for analytical dose
selection and interpretation prior to initiating efficacy studies.
By the end of the year, we are planning to have 100% of new
chemical entities evaluated using digital tolerability before
starting any long-term efficacy studies in animals. Furthermore, we
continue to increase the dimensionality of digital biomarker
signals measured in our preclinical in vivo studies.
- Chemical Technology and Machine Learning: We have
completed the design of the remaining core component modules of our
automated chemical microsynthesis platform. We envision advanced
machine learning approaches as guiding experiment design and drug
candidate selection while exploring new ways of building maps of
biology and chemistry in order to improve our ability to predict
treatments and understand causal mechanisms. Likewise, in the third
quarter, we began an initiative in molecular modeling to use
predictive and generative methods to drive chemistry
optimization.
- Additional Corporate Updates
-
- Private Placement Offering: On October 27, 2022, we completed a private
placement of common stock, raising gross proceeds of approximately
$150.3 million, before deducting
placement agent fees and other expenses.
- ESG Reporting: In August
2022, we announced receiving a Prime Rating for ESG
performance from the industry-renowned Institutional Shareholder
Services (ISS). A Prime Rating is awarded to companies with ESG
performance above a sector-specific threshold and is assessed by
ISS using an "absolute best in class" methodology.
Third Quarter 2022 Financial Results
- Cash Position: Cash and cash equivalents were
$454.6 million as of September 30, 2022, which excludes proceeds from
the above private placement offering.
- Revenue: Total revenue, consisting primarily of revenue
from collaborative agreements, was $13.2
million for the third quarter of 2022, compared to
$2.5 million for the third quarter of
2021. The increase was due to revenue recognized from our
Roche-Genentech collaboration.
- Research and Development Expenses: Research and
development expenses were $40.8
million for the third quarter of 2022, compared to
$33.2 million for the third quarter
of 2021. The increase in research and development expenses was due
to increased clinical costs as studies progressed.
- General and Administrative Expenses: General and
administrative expenses were $19.5
million for the third quarter of 2022, compared to
$15.7 million for the third quarter
of 2021. The increase in general and administrative expenses was
due to the growth in size of the company's operations, including an
increase in salaries and wages of $4.0
million and other administrative costs associated with
operating a public company.
- Net Loss: Net loss was $60.4
million for the third quarter of 2022, compared to a net
loss of $47.4 million for the third
quarter of 2021.
About Recursion
Recursion is the clinical-stage biotechnology company
industrializing drug discovery by decoding biology. Enabling its
mission is the Recursion OS, a platform built across diverse
technologies that continuously expands one of the world's largest
proprietary biological and chemical datasets. Recursion leverages
sophisticated machine-learning algorithms to distill from its
dataset a collection of trillions of searchable relationships
across biology and chemistry unconstrained by human bias. By
commanding massive experimental scale — up to millions of wet lab
experiments weekly — and massive computational scale — owning and
operating one of the most powerful supercomputers in the world,
Recursion is uniting technology, biology and chemistry to advance
the future of medicine.
Recursion is headquartered in Salt
Lake City, where it is a founding member of BioHive, the
Utah life sciences industry
collective. Recursion also has offices in Toronto, Montreal and the San
Francisco Bay Area. Learn more at www.Recursion.com, or
connect on Twitter and LinkedIn.
Media Contact
Media@Recursion.com
Investor Contact
Investor@Recursion.com
Consolidated Statements of Operations
|
Recursion
Pharmaceuticals, Inc.
|
Condensed
Consolidated Statements of Operations (unaudited)
|
(in thousands,
except share and per share amounts)
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
September
30,
|
|
September
30,
|
Revenue
|
2022
|
2021
|
|
2022
|
2021
|
|
Operating
revenue
|
$
13,053
|
$
2,500
|
|
$
26,005
|
$
7,500
|
|
Grant
revenue
|
107
|
34
|
|
162
|
145
|
Total
revenue
|
13,160
|
2,534
|
|
26,167
|
7,645
|
|
|
|
|
|
|
|
Operating costs and
expenses
|
|
|
|
|
|
|
Cost of
revenue
|
15,409
|
-
|
|
37,435
|
-
|
|
Research and
development
|
40,836
|
33,246
|
|
111,716
|
86,979
|
|
General and
administrative
|
19,488
|
15,690
|
|
61,761
|
38,481
|
Total operating
costs and expenses
|
75,733
|
48,936
|
|
210,912
|
125,460
|
|
|
|
|
|
|
|
Loss from
operations
|
(62,573)
|
(46,402)
|
|
(184,745)
|
(117,815)
|
|
Other income (loss),
net
|
2,128
|
(1,026)
|
|
2,761
|
(3,731)
|
Net
loss
|
$
(60,445)
|
$
(47,428)
|
|
$
(181,984)
|
$
(121,546)
|
|
|
|
|
|
|
|
Per share
data
|
|
|
|
|
|
Net loss per share
of Class A and B common stock, basic and diluted
|
$
(0.35)
|
$
(0.28)
|
|
$
(1.06)
|
$
(1.10)
|
Weighted-average
shares (Class A and B) outstanding, basic and
diluted
|
173,435,970
|
168,533,550
|
|
172,122,974
|
110,513,231
|
Consolidated Balance Sheets
|
Recursion
Pharmaceuticals, Inc.
|
Condensed
Consolidated Balance Sheets (unaudited)
|
(in
thousands)
|
|
|
|
|
|
|
September
30,
|
December
31,
|
|
|
2022
|
2021
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
454,646
|
$
285,116
|
|
Restricted
cash
|
2,090
|
1,552
|
|
Accounts
receivable
|
-
|
34
|
|
Other
receivables
|
11,635
|
9,056
|
|
Investments
|
-
|
231,446
|
|
Other current
assets
|
13,247
|
7,514
|
|
Total current
assets
|
481,618
|
534,718
|
|
|
|
|
|
Restricted cash,
non-current
|
8,154
|
8,681
|
|
Property and equipment,
net
|
85,777
|
64,725
|
|
Operating lease
right-of-use assets
|
33,726
|
-
|
|
Intangible assets,
net
|
1,457
|
1,385
|
|
Goodwill
|
801
|
801
|
|
Other non-current
assets
|
-
|
35
|
|
Total
assets
|
$
611,533
|
$
610,345
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
3,890
|
$
2,819
|
|
Accrued expenses and
other liabilities
|
26,757
|
32,333
|
|
Unearned
revenue
|
46,753
|
10,000
|
|
Notes
payable
|
95
|
90
|
|
Operating lease
liabilities
|
5,541
|
-
|
|
Lease incentive
obligation
|
-
|
1,416
|
|
Total current
liabilities
|
83,036
|
46,658
|
|
|
|
|
|
Deferred
rent
|
-
|
4,110
|
|
Unearned revenue,
non-current
|
93,909
|
6,667
|
|
Notes payable,
non-current
|
561
|
633
|
|
Operating lease
liabilities, non-current
|
45,993
|
-
|
|
Lease incentive
obligation, non-current
|
-
|
9,339
|
|
Total
liabilities
|
223,499
|
67,407
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
Common stock (Class A
and B)
|
2
|
2
|
|
Additional paid-in
capital
|
970,096
|
943,142
|
|
Accumulated
deficit
|
(582,064)
|
(400,080)
|
|
Accumulated other
comprehensive loss
|
-
|
(126)
|
|
Total stockholder's
equity
|
388,034
|
542,938
|
|
|
|
|
|
Total liabilities
and stockholders' equity
|
$
611,533
|
$
610,345
|
Forward-Looking Statements
This document contains information that includes or is based
upon "forward-looking statements" within the meaning of the
Securities Litigation Reform Act of 1995, including, without
limitation, those regarding early and late stage discovery,
preclinical, and clinical programs; licenses and collaborations;
prospective products and their potential future indications and
market opportunities; Recursion OS and other technologies; business
and financial plans and performance; and all other statements that
are not historical facts. Forward-looking statements may or may not
include identifying words such as "plan," "will," "expect,"
"anticipate," "intend," "believe," "potential," "continue," and
similar terms. These statements are subject to known or unknown
risks and uncertainties that could cause actual results to differ
materially from those expressed or implied in such statements,
including but not limited to: challenges inherent in pharmaceutical
research and development, including the timing and results of
preclinical and clinical programs, where the risk of failure is
high and failure can occur at any stage prior to or after
regulatory approval due to lack of sufficient efficacy, safety
considerations, or other factors; our ability to leverage and
enhance our drug discovery platform; our ability to obtain
financing for development activities and other corporate purposes;
the success of our collaboration activities; our ability to obtain
regulatory approval of, and ultimately commercialize, drug
candidates; our ability to obtain, maintain, and enforce
intellectual property protections; cyberattacks or other
disruptions to our technology systems; our ability to attract,
motivate, and retain key employees and manage our growth; inflation
and other macroeconomic issues; and other risks and uncertainties
such as those described under the heading "Risk Factors" in our
filings with the U.S. Securities and Exchange Commission, including
our most recent Quarterly Report on Form 10-Q and our Annual Report
on Form 10-K. All forward-looking statements are based on
management's current estimates, projections, and assumptions, and
Recursion undertakes no obligation to correct or update any such
statements, whether as a result of new information, future
developments, or otherwise, except to the extent required by
applicable law.
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