Q3 2025 Recursion Pharmaceuticals Inc Earnings Call
Speaker #1: Hello everybody , and welcome to recursion s third Quarter 2025 Earnings Call . My name is Chris Gibson . I'm the co-founder and current CEO of recursion , and I'm so delighted to have you all joining us today .
Speaker #1: I want to start off by talking about something that I'm really excited about , which is our executive leadership updates , and it's my pleasure to share with all of you that beginning January 1st , the amazing Najat Khan is going to take over the role of CEO , president and Director of Recursion .
Speaker #1: I've been working with for the past 18 months in an incredible partnership to build our platform to deliver on our pipeline and our partnerships and everything that I have seen has convinced me that she is absolutely the right leader to take recursion through its next chapter .
Speaker #1: And I'm so delighted that she has agreed to take on that role . I'm also incredibly excited that I'm going to continue bringing my passionate , unapologetic founder energy to recursion as the chairman of the board and as an executive advisor .
Speaker #1: And finally , I want to say a huge thank you to our entire board and especially to our chairman , Rob Hirshberg . He's been an amazing chair and an incredible mentor to myself and Najat Khan .
Speaker #1: And I am delighted that he's going to continue on with us . I hope for a very long time as our vice chairman and lead Independent Director .
Speaker #1: These are really exciting changes that I believe are going to position recursion to affect our mission to lead the tech . Biospace and I am so , so thrilled to get to share them with you today .
Speaker #1: Najat Khan .
Speaker #2: I want to thank the board and just our incredible team for the trust and partnership . And Chris , first for a few minutes .
Speaker #2: I want to say , look , your vision and the courage with which you have taken this from zero to what recursion is today is unparalleled .
Speaker #2: And you've not just been instrumental in building the company . Of course , but also creating a new sector that never existed before .
Speaker #2: Really , truly blending the best of technology and science to make medicines and radically improve patient lives . There's so much to do .
Speaker #2: So I'm really I'm deeply grateful . Of course , for your leadership . But even more so for your friendship , which I'm looking forward to doubling down on as we work together .
Speaker #2: And all of your many roles . When I just want to say a few other words to look . When I joined recursion 18 months ago , I was drawn to the bold ambition that an ambition in action and you know what ?
Speaker #2: An 18 months has been ? Step one was the the special combination with xantia to really , truly build that end to end tech stack , as we like to call it , engine .
Speaker #2: And also the data generation . We've talked a lot about models , but proprietary , high quality data is critical and a critical mode to what we do .
Speaker #2: Building out cleantech platform in the clinic . This is going to be a critical part of what we do . And also sharpening our portfolio , advancing multiple programs internally with our partners .
Speaker #2: Chris will share a little bit more of some of the latest updates from Roche and doing so with a discipline and urgency that I think patients will be proud of .
Speaker #2: And this is a pivotal chapter for recursion , one that will require bold focus . The boldness will never go away , but also navigating the complexity that , quite frankly , is drug discovery and development .
Speaker #2: Having seen that for many years and the relentless sense of urgency and good capital stewardship , that's going to be critical for us to fully realize our mission .
Speaker #2: My focus , you know , and I'll listen more and think more over the coming weeks . But really , it's going to be translating , translating these platform insights into repeatable , clinical proof , whether it's through a wholly owned programs or with partners scaling the platform that we have , where we have a clear , clear , clear advantage and building a company that delivers sustainable value , the foundation is the vision is clear .
Speaker #2: The opportunity ahead is extraordinary . And I couldn't be excited . The work will be hard . I am clear eyed about that and there will be bumps in the road , but it should be because it's deeply worth it .
Speaker #2: Because we're doing something that there's no blueprint front . It hasn't been done before . There's also deeply meaningful for the patients that we serve and for the future that we're building together .
Speaker #2: So I'm so excited . I couldn't be prouder of the next phase . Looking forward to partnering with Chris and the rest of the broader team .
Speaker #2: Exceptional team , if I say so . To define that next phase and the next chapter for recursion .
Speaker #1: Thanks , Najat Khan . And with that out of the way , I think we should get back to to work . And one of the things that I'm extremely excited about is that recursion has a tremendous amount of potential catalysts coming in the next 18 months from our pipeline to our partnerships to advancements of our platform .
Speaker #1: We are going to continue to deliver exciting updates . I hope , on a really regular cadence to all of our shareholders , all of our stakeholders , and ultimately advancements and milestones that I think take us on a path towards really affecting patient lives .
Speaker #1: And we're going to do all of that with a pro forma cash balance of almost $800 million as of a few weeks ago .
Speaker #1: And what I'm excited about is that gives us runway through the end of 2027 without any additional financing . This means we're in an incredibly robust position from a balance sheet perspective to deliver across all of these catalysts .
Speaker #1: Now , let me talk a little bit about something that was really exciting that we got to share last week , which is how our platform is fueling all of our partners .
Speaker #1: But in particular our Roche and Genentech colleagues . We shared last week that we had earned a $30 million milestone payment . This is our second such milestone from Roche and Genentech for the delivery of a whole genome .
Speaker #1: Neuro map . And I want to point out that this brings our total cash inflows from partnerships to more than half $1 billion .
Speaker #1: And I think that is a milestone that few Pre-commercial biotech companies ever achieve . And one that I think is a leading indicator of the kind of value that we are going to continue to deliver here at recursion .
Speaker #1: So let's talk a little bit about the Roche Genentech collaboration . This is a collaboration that's a decade long focus in neuroscience and GI oncology .
Speaker #1: We've already been able to deliver four whole genome phenome apps in our GI oncology space , generating over 100 billion GI oncology relevant cells .
Speaker #1: And we already have a program that's been optioned out of that particular set of maps and heading toward lead series . And I hope many more in the future as well .
Speaker #1: But what we announced last week was that in addition to the whole genome arrayed Crispr knockout map of of IPSC derived neurons that we delivered last year , where we became , we believe , one of , if not the world's largest producers of these IPSC derived neurons , neuronal cells .
Speaker #1: We have now delivered a second whole genome map , this time in the incredibly challenging microglial cells . The immune cell of our brain and what we are excited about is the number of incredibly novel potential targets that we have identified in both of these phenome that we believe have real potential , not only to lead to novel target options in the future .
Speaker #1: With our colleagues at Roche Genentech , but I hope really meaningful medicines for patients in the field of neuroscience , where all of us agree there's a lot , a lot of work to do .
Speaker #1: So I want to talk a little bit more about this work , and I want to remind everybody , what do I mean when I talk about a map of biology , we have knocked out nearly every gene in the genome in these microglial cells , and we have leveraged machine learning and AI techniques to turn images of these cells into functional maps of the relationships between every single gene .
So we've heard a lot about agentic agents, 1 of the most exciting parts of the OS is how we are using scientific agents, AI systems that actively participate in the entirety of the scientific process. Now, these agents are helping us thinking about the data that Chris just mentioned, phenomics transcriptomics, real world data with Partners, like Tempest and others.
Public data sets, like PubMed death map. I mean so much the list goes on and on and we have early proof of concept agents that we're leveraging in order to really not just analyze and interpret the data real time, but to actually select the optimal tools workflows generate hypotheses and design new experiment. This is going to supercharge our already extraordinary Talent. The other reason, um, I'd like to mention this is also around it captures the decision-making Trail, that's really important. The way you get these agents to be highly effective, is to actually understand the logic behind the recommendations and iterate on in real time with our scientists and and, and our clinicians. And that is something that we're doing and having that inherent data. This platform helps us do it in action. Not just theoretically
I often get the question in terms of, how do we drive economies of scale? We are a tech bio company. This is going to be 1 of the very important levers for us as to. How do we do more given all a lot of the insights that we're generating with what we have today? So just keep an eye on this but I wanted to double click on a really important area of progress for us that is truly applied to what we need to do to create programs that are differentiated.
The second area. If you go to the, if you do 1 more quick,
I will do it. Um is really around automated admin. Look we talked a lot before around bolts 2 and other programs that really help you understand binding, affinity and so forth. But as we all know, in order to actually design programs at critical element of it is to ensure that they are drug-like. So this is an area that is critical for us and what we are doing. This is the automated platform that we have, in Salt Lake City, combining High throughput experimental automation with Advanced machine learning. It's a fully automated closed loop system that integrates admit property predictions directly into that middle, uh, module that we have, which is our AI enabled Precision design. So it does a couple of things. Number 1,
Um, design better models.
Second, the comprehensiveness of the admet properties over 50 or so it's just a starting point and that's only going to increase is important. In order to ensure the algorithms are actually generalizable
And then the third you've heard about models such as mold GPS and there's new models that that are coming up all the time. But these data feed directly into the model which is actually iterating and helping our models to be retrained real time. So both examples of real time iteration is critical for us to not, just have a platform that's useful but a platform that stays ahead of the curve and learns from both our successes and our mistakes.
So with that, I want to walk um to the next part which is how is the platform being leveraged to actually generate programs and this actually slides came to my mind during a flight post. Popular demand from um analyst questions and investor questions.
Here's what you have. I'll just walk you through it. Um, on the rows, the 3 design components that. I just mentioned the biology of the chemistry and the clinical development that you saw on the last slide, everything from phenomenology transcriptions Etc. And as I do, the build for the columns, these are the various iterations generations of our platform. So just to give you a clear view on which programs you're using what components of our platform.
So, it's important to note as you.
You'll see the earliest programs built on our first generation platform, which I will call the 0.1 and we've shared that before are now and the programs that are now in the clinic tangible proof that we are generating programs and also learning fast the flywheel with every turn of the crank. We're learning really, really fast as to how to improve on what we're doing well and what we need to do better
so,
The first 1 here, Mech, 1 2, um, more data coming in December, I'll share a little bit more of our plan there. This is a proof Point around. How are we leveraging Dynamics and unbiased approach to drug Discovery in order to really ascertain which compound, which mechanism which we do not know, going in could actually help attenuate. The Hallmark of the disease which is polyps hundreds to thousands of policies more to come on that in a second. Um, now often I get the question that if this was part of platform 0.1, is that it? The story never ends there as you will see with clintech. If you go to the third row, we are actually leveraging recruitment Solutions, as well as patient selection and stratification to even programs that are the early part of the platform. We're leveraging some of our recent components in Clint Tech to add more value creation.
The second, uh, iteration of our platform because the 1.0 we're beginning to combine phenomics and biology, as well as chemistry design as well. So, examples such as RBM, 39, cdk7 Etc. And of course, components of the Clint Tech platform,
And then 1 more click. Um, these are programs in discovery which I hope to be able to. We hope to be able to talk about soon that as you can see is
incorporating all of the various components of the platform from Discovery biology novel, insights chemistry, and clintech and not just for our wholly owned programs but also for our partner programs. So more to come on that.
So where are we making progress? Uh, you've seen the slide before I left your updated, every time that we that we meet. So first of all cdk7, combination cohorts have been initiated, I'll speak a little bit more in a moment in terms of some of the analysis and some of the data that we have from the monetary dose escalation, uh, pi3k 1047 R. Um, the development Canada has been nominated which was again, 1 of our um, um, milestones for this year and Mech 1 2, we'll have a webinar in December uh, in order to share some of the additional data from our 4 milligram cohort. As you also heard from Chris, uh, the 30 million option, uh, Milestone received for the micro GA map. This is in addition to the 6 Fen maps, and also, some of the programs that we're generating.
And great fraction across the other programs and Partnerships including syny. I just want to pause and and, and take a moment to say
Both of our internal and our partner programs are critical critical to us. Delivering tangible proof as well as also learning fast to keep evolving. Our platform
1 of the main reasons, for those challenges is the narrow therapeutic window and just the molecular properties of limited tolerability and efficacy.
What are we doing leveraging our platform? That's different number 1 leveraging. Our platform, we set out to design a molecule that directly addresses 1 of these core limitations around therapeutic index, which is optimizing permeability, and e-lux. So that we reduce the GI related talks and variability that others have seen before. That's number 1,
Number 2. We are also leveraging preclinical data as well as multimodal real world data. Call the AI, all of those components of our platform in order to hone in on patients that might both benefit. How do we steer a product into the right? Patients? Patient, stratification. That's another area of differentiation that we're focused on and of course, from pre-clinical Models, we've seen tumor regression in both ovarian and, and breast cancer.
We also share some early data last year, early clinical last, uh, data from last year that showed manageable safety profile as well as some partial response as well.
What is our next Focus?
So in terms of our next Focus, um second slide we have completed our end, our Phase 1 dose escalation, so MTD has been achieved in uh Advanced solid tumors. I'll get to that in a second. In addition to that concurrently the team is also looking into alternate dosing schedule just to figure out ways to even further. Optimize, the therapeutic index specially for long term, um, long term dosing, the other areas of near-term, focus for us, which is
Is already well underway is a phase 2 dose expansion in the cohort that we had. Mentioned the Platinum resistant ovarian cancer as well as combination which is going to be key in the space. Um um with a couple of combination standard of care that you can see on the slide recruitment ongoing across all of these cohorts.
The other thing that's important to notice, a lot of the trial design is focused on rapid and efficient go no-go and we'll share more in terms of the, you know, Phase 1, dose escalation, uh, data at at a medical Congress next year. And then in addition to that, we should have some of the ovarian combination data in 2027 safety PK PD, maybe early signs of efficacy more to come, um, in next year, as we see the recruitment shaping up in terms of details from when in 2027, so stay stay tuned.
All right.
So, let's go into the monotherapy, uh, dose dose escalation. So a couple of things to note.
As of September 29th, uh, which is the cut off date. We have 29 heavily. Pre-taped pre-treated patients with Advanced solid tumors that have received 617 across 6 dose levels.
Uh, just as contacts, these patients, represent a rather challenging population. Most with multiple prior, prior lines of therapy and limited standard options. We have now established um a 10 milligram once daily, uh, NTD maximum tolerated, dose with a manageable safety profile. We talk about in a second and also preliminary entity.
Consumer activity. That's consistent with what we shared. In the 2024 update, the most common dose. Limiting toxicities were nausea, which is to be expected, and some thrombocytes On Target effects for this target class.
If you go into safety um look the safety data is consistent with what we saw. Uh last year. Um first of all, we have about 30% of patients that experienced grade 3 treatment related, Adverse Events and the majority were low grade 1 or 2. They were no great for or 5 treatment related events and only 2 patients about 7% discontinued due to an AE.
1 thing I want to note here and again, this is early, we're learning more, of course, the GI related toxicities that we have seen diarrhea. Nausea. Vomiting were relatively manageable and in line with class expectations, and to just put that in context, a little bit more.
To put that in context a little bit more, you know, in terms of diarrhea, we saw about 69% nausea 41. Vomiting 28, um, of course, looking at some of our peers. Um, um, also in the states, the numbers for diarrhea are about 82% 77 for nausea and vomiting for 80%. So, it's trending in the right direction, but of course, much more work to be done, but a trending to be slightly lower than what we have seen in other prior published data.
all right, um, in terms of efficacy, first of all on the left hand side, this highlights, uh, the PTA profile
C. 80, while remaining below cdk2, IC 80 supporting the selective inhibition. That we wanted to see in pre-clinical models. What does that mean in pre-clinical models? Um, 10 milligrams, equivalent 2D showed robust tumor, regressions with about 2 to 4 hours to Target coverage. And the early PD data that we have indicates that this is about 80 to 90% of transient polar to a engagement, which is 1 of the key PD markers, that we are tracking in the space again, consistent with that hypothesis. So from a, from all of the data that we've seen so far 10 milligram QD is from a pharmacologically active dose, in addition to that, we're also looking into alternate intermittent schedules, such as 7day on off to further maximize the dose intensity while maintaining tolerability for a long time dosing.
On the right hand side, you're also seeing some of the early clinical Trends. Uh, translation. Look at 10 milligram is where we see stable dose. And also the patient that have the pr
Of course in this patient cohort monotherapy is not an area that we were expecting outcomes and which is consistent with what we've seen with other cdk Inhibitors. Which is why our combination is going to be incredibly important. So stay tuned more to come on that.
And last name, speaking about the combination I've shared this, we've shared this data before but ovarian cancers the current area of focus which is different from what? Others have gone uh which has been much more primarily in breast cancer or abroad, uh, basket of solid tumors? You know, pulling together everything that we have seen in cell lines, um, on the left, you know, in terms of ovarian cancer models the sensitivity to cdk inhibition, combining that with what we've seen in Vivo at 10 milligram dose, we saw complete tumor regression by day 27, um, as well as on the right leveraging, our patient level data from over 30,000, ovarian cancer samples, integrating DNA RNA and clinical outcomes to really showcase that cdk7 is a lightly driver of Porsche survival um and some of the work we've done with our causal and friends and AI works. So but again the proof is always in the pudding. So much more to be done and um, expect more on the full data.
Set. I just mentioned for the monetary therapy dose escalation next year at a medical Congress um, as well as combination data in 2027, we'll give you narrow guidance or more specific guidance as we as we get full flow into our recruitment.
All right.
Um, and just wanted to, um, a heads up on Rec 481, which is our other program that has an important uh, readout coming out next month.
So just as context, high-end mint need 50,000 patients diagnosed across us eu5. Um, rare inherent, uh, inherited disorder, APC loss of function, um, and standard of care is quite challenging. Um, you know, surgery is a standard of Care Collective, Etc. And no approved therapies to date. We also have orphan drugs uh, designation for this compound
Um, just to recap of some, of the earlier data that we've seen in May, that was, uh, shared in ddw, 43% median reduction in total pilot. Burden that is the Hallmark standard of care today. Off label, use of cell coxib is usually 20% or so, or 25%. But again, this there's a range from 30% to almost uh, 2 actually 83%, uh, in a small cohort that we had seen in, uh, May with seen about 6 patients, we expect that to be double or close to double by the end of this year. And what we're looking for again, as I mentioned before, is to see these Trends will hold and a significant um, benefit over the 20% that has been seen so far. Um, in terms of what we're seeing from a, you know, a treatment related aees, 19% grade 3, majority is rash. And the prophylactic approach is really made it.
Much more manageable and cardiac talks more great too so far.
Um, so again December, we'll share more information in the coming weeks. Exactly 1 in December. We'll have the phase 1. Be to update. This is going to be an important update as I mentioned and then we'll also discuss some of the next um steps for the program. If the trends hold you know 1 of the core. Next steps will be to actually have uh discussions with Regulators on a pivotal study.
And I just want to say, you know, this is one of those, as I like to call, green shoots in terms of leveraging our platform to see how a burden reduction, both in vivo and then also starting to see impatience. But again, small data set, more to come. We're looking forward to the data cut in December.
Thank you, John. Another thing that we are very excited about is going into that fap data as well as the milestones in 2026 in a really strong financial position. So over the course of the year, you've seen us do a number of things in may, we laid out a strategic plan that allowed us not only to hit on multiple high-value Milestones, but also reduce our expense based by 35% from 2024. This was a really important step in us. Uh, trying to put that discipline in place that meant jot was talking about earlier. Uh, and then you started to see us, hit those Milestones. We've brought in almost 40 million from our partnership inflows over the course of this year so far, uh and we expect more of that to come in the future. So with today, our announcement of having 785 million of cash in the bank. As of October 9th is a really strong step in creating that foundation so we can look forward into the future milestones and say we don't uh have that financing need to be able to achieve
Our near-term milestones and uh, really deliver a lot of value to shareholders. And so uh, when we uh look forward, uh, we looked at how we can um bring that financing together in a way that was uh going to minimize our dilution to all of the shareholders as well as really uh continue to allow us to focus on the business and uh move it forward.
We are also reaffirming our guidance uh, for 2025 on an expense, uh, base of, uh, less than 450 million. That's excluding all of the partnership inflows in 2026. We're also reaffirming less than 390 uh, million over that time period.
Uh, 1 note on that, uh, 35% expense reduction, that actually equates to over 200 million in expenses, coming off of that 2024 base, uh, and we've done that by really focusing in on what is going to be the aspects of the business that deliver the highest value and efficiently, uh, bringing that together, uh, we will continue to look at our expense base. We are completed with all of the restructuring that was associated with the transaction. Uh, but we will continue to look at our operations and think about how can we do this better? How can we do this more efficiently? How can we get more out of every dollar that we spend and really focus in on the high value Partners or a high value? Uh, projects
Uh, from a partnership perspective, uh, the 30 million in uh uh Milestone from microglia that we achieved with uh, Roche Genentech was not included in the 785 million in cash, uh, importantly. Uh, we do not give guidance on Revenue, but I know a lot of the services track it. So we just want to be really clear. Uh, first of all, we don't consider uh, the lumpiness in our Revenue to be any indication of our business. Uh, but
What we uh do know is uh the timing of our Milestones can impact, how we recognize some of that revenue. For example, last year we had a milestone associated with the neuronal map. And so we had a larger um, uh, piece of Revenue. That was recognized in that quarter last year and the third quarter of last year.
The row micro GA map Milestone is going to be recognized, uh, partially in the fourth quarter, and it is important that partial not full. Uh, and so you would see some of that lumpiness, come into our fourth quarter numbers, uh, there as well.
Really importantly the uh, nearly 40 million that we've recognized uh, this year from our partnership inflows actually brings us over 500 million uh, in Partnership inflows over the the course of the company that shows just what an important piece of non-dilutive capital. Uh, that part of the business and platform has become to the overall company. Uh, we are also maintaining our guidance of over 100 million in Partnership inflows, uh, by urine 2026, uh, that we laid out in in May of this year. So, we're making great progress along that and expect to continue to see a lot of that, uh, come through in the next year as well.
And with that, I will turn it back over to De to talk about some of the upcoming milestones.
Great. Thank you so much Ben and, you know, um, we wanted to just capture both looking at this here, as well as what's coming up next year for this year.
Update, you know, potential first POC for our platform, most 1 mono therapy initiation and um the pi3k DC nomination.
I will also talk a little bit about our platform and then go to, um, our partnership on the platform front a ton of work, like, 3 words on a slide integrated design platform. But actually it should say, integrated our end-to-end platform, the amount of migration work I have seen this across other companies before with the speed with, which that was done in the utility, the fact that we had no slowdown in our productivity of our platform speaks to our fantastic engineering data science, uh, teams that exists. And then also the work with, uh, MIT and Nvidia on both 2, uh, but much more that's going, um, on in-house, which are, uh, which would be a pleasure to share next time, especially with our Frontier team. Which is our, you know, zero to 1 Cutting Edge, uh, AI team really, really proud of the work that they're doing valence and Inception labs and then Clint Tech. This has been a core focus of for us in the last several months. Really build out the tech stack end to end also into clinical development, crucial pillar as we execute on these programs.
And on the partnership highlights, you know, Chris and then mentioned of course the roach 30 million from micro GA. But the real work that we're doubling down on is both of the maps in neuroscience and additional maps in ghee on and really turning and Chris showed this really um beautifully in his slides, turning those into insights with the Deep functional value.
Validation with our partners to then become programs that is the core Focus for us Translating that value. Um, and of course, progress with seni, 4 out of 4 milestones so far in immunology and oncology, and much more work ongoing, you know. We're so, um, honored to be able to work with our partners, Roshan Antics, and you'll see mercy and buyer. We learn so much from each and every 1 of them. So, thank you for the partnership.
And then looking ahead um, stay tuned for the rack 4881, we'll share more data in terms of um our Phase 2, in December. Uh in addition to that for next year, you know, RBM 39. This is our first in class um um compound from the phenomics platform. It's also leveraging of course a lot of our Clint Tech approaches today we should have some early safety and PK data from our monotherapy trial. And then in addition to that um INTP 1 Pi 38, both in uh glp tox right now. And pending that data Phase 1 initiation, the team is all set up. Pending pending with the data looks like and from a partnership perspective, as I mentioned, you know, deep focus on turning Maps into insights into programs. That's a huge Focus for us. In addition to some of the programs that we're already working on and additional Maps as well. So, uh, lots to do, there's never a down moment at recursion, I assure you loving the pace, um, and we'll keep you all posted with that. Uh, thank you so much. I'm going to
To hand it back to Chris for our Q&A.
Thank you. All right, let's go. We've got Sean and from Morgan, Stanley, been this 1 goes to you can you review expectations for cash, burn through 2026 and how this works with Runway expectations, through 27, without additional financing. I know you just hit that but maybe break it down for everybody. And then also you plan to use any additional ATM financing. Yeah, of course. So I think there's a couple of things that we looked at uh over the course of the quarter. So 1 uh the most important thing for Growth Company is delivering on high-value milestones.
And so our role as the management team is to make sure that we have the resources to be able to hit those milestones.
So, um, we looked at, uh, all of the things that we've talked about before. So how do we do the right expense control? How do we prioritize the right programs and then, um, how do we make sure that we've got the right, uh, cash balance in place to be able to, uh, reach those milestones and really focus on them?
So, uh, what we decided to do was foot fully utilize the ATM, over the course of the quarter, the remaining balance on the ATM. So that is now closed. We have not opened up a new ATM, uh, and what that allows us to do is really, uh, go in and put in a cash balance that without any additional financing allows us to get to the year end 2027, uh, and Achieve, uh, those Milestones that Nat was just talking about is, as well as many others. Um, just because I know, uh, the, uh, Finance
Um, uh, increasing as well. And so we looked at the ATM as a, um, a very attractive cost of capital, uh, that would put us in a position to be able to execute, uh, on the plan going forward. Um, the other part was just there was so much Focus that was becoming a part of the uh the financing and cash balance. It was actually starting to overshadow some aspects of the story and so with such important data like fap and some of the other Milestones that are upcoming, we wanted people to really be able to focus in on the fundamentals of those um uh those events rather than uh needing to worry about. Are those events just going to lead to another financing or other aspects like that and so we hope is that this allows investors focus. It also gives us a lot of ability to really focus on delivering those Milestones over the coming. Uh months. Thanks been so financing. Overhang has been struck uh Alec from BFA 1 question on platform utilization. It looks like older.
Programs, use parts of recursion capabilities in their development with platform, 2.0 assets leveraging. The full stack nhat. This 1's coming to you, how do you see this feeding into the quality or uniqueness of the newer assets and anything to be read into for current? The current pipeline like 4 de 1 where it only benefited from phenomics in the version 0.1 of the platform. Yeah, no. Thank you, Alec. And by the way, you are 1 of the 1 of the voices that inspired us to create that slide. So so thank you for all the sharing your feedback, so look, um, 4888.
1, you know makes our platform today even if we're making it multimodal still leverages genomics a lot, right? And we are very, very excited in terms of some of the data we've seen to date and more to come. You know, later this year but in terms of with every crank like you know some of the clinical stage programs that we have come from the earlier stages of the platform in Discovery you know later stages of our platform. I think that's just the true iterative nature of drug Discovery and development and the Improvement of our compounds doesn't just stop in Discovery. It's also in development. So you see some of the Innovative approaches that we're also taking in development for fap cdk7, Etc. So we look at it more holistically but look with every crank the platform gets better, and that's just what it is for us and we're learning fast and we want to execute and iterate as quickly as possible to get them into the clinical as well. Thanks Nat. I'm going to bring this next 1 over to you as well, from Gil at nem, Shaun at Ms. And Manny from Lear Inc, on the partnership side is recursion.
Looking to maintain current biofarma Partnerships or expand to new Partnerships in the near to mid-term midterm. And what are some of the Milestones that we should be focused on great question. Um, our Partnerships that we have are deep, uh, highly collaborative and transformational. We are very, very excited about the Partnerships that we have. And I mentioned some of the Milestones that are critical for US maps to programs, for instance, in our row, uh, genetic Partnerships and for Kofi really making progress on the various programs that we have in immunology and oncology.
You know we uh are always having discussions in terms of potential new Partnerships, we are being incredibly choice, so that is an area that will always be open to. But areas, we can drive incredible value as well as our partner. It has to be a win-win. So the answer is yes. The door is always open. But we also, we tend to curate a set of partners that we can really show tangible, um, value with
Thanks. And next 1, I'm going to take this is from guy and Alec um would be interested to hear your thoughts on the evolving AI drug development landscape especially with companies like Lily throwing their hat in the ring and also partnering with Nvidia. So look, I think this is extraordinarily exciting. This is a sign that uh, when we said a couple of years ago, we looked like what the future of biofarma will look like that. We were right. Companies are starting to embrace massively. Scaled compute. They're starting to embrace Ai and so this, uh, Tech bio sector is really, I think just a harbinger of what the future of biofarma will become. And so this is super exciting to me. I'm so glad that Lily is making this Visionary investment. I'm so glad to see them partnered with Nvidia. Uh, and I look forward to uh, working alongside many companies in the future that come to the space. We want to move the entire field forward ultimately to bring medicines to patients. So really, really excited by that. Uh, uh, Advanced. And then final question, I think, fittingly over to Nat, uh, from Dennis, uh,
At Jeffrey's congrats on the new role. I mean, effective January 1st. We still got a few weeks. Uh, Curious what philosophy. You're bringing into the ca CEO and if there are any near or medium-term priorities that are top of mind for them,
That is the core element that matters the most as Chris was saying, look, I've been in big Pharma before. Now I'm in, um, Tech bio biotech. AI inspired by whatever term you want to use.
At the end of the day, it's about making differentiated programs. And then eventually medicines for patients that matter, that is the core Focus for me. It starts with that, it ends with that we have this is this is a tough Journey, 90% failure rate. I am aware cleared out of how tough it is across industry and we're doing something in a way that's never been done before. That's going to be my core Focus. The second is going to be really investing where we have a unique ability to win. That's a platform that's our programs, we're going to make data driven. And you've seen me do that before. Go no-go decision on our programs. That's why. When you see all of the programs we're doing concurrent
Targeted efficient approaches, so that we can get to a rapid go no-go because unlike a lot of other companies there are multiple other programs that we're bringing from Discovery into the clinic. We need to be choice in terms of where we go and then the third is discipline and execution and good Capital stewardship, you heard Ben talk through. We are grateful for the capital that we have and my intent is to use every single dollar for what will truly create value for our shareholders and our patients. So those are some of my areas of focus. I am sure, I'll think more on it um over the holidays and and and with Chris's Council. I am so excited to continue partnering with Kris. It's been such a great
Journey and so much more to come together. Thanks Andra. It's been an amazing first, 12 years, and I'm looking forward to the next 12. Thank you everybody for joining us. I hope you have a great day.