Recursion Pharmaceuticals, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company achieved operating revenue of $26.1 million for the third quarter, a substantial increase from $10.1 million in the same period of 2023, reflecting over a 100% growth. Total revenue for the quarter also rose to $26.1 million, up from $10.5 million year-over-year. For the nine months ended September 30, 2024, operating revenue reached $54.0 million, a 62% increase from $33.3 million in the prior year.

Despite the revenue growth, Recursion reported a net loss of $95.8 million for Q3 2024, slightly higher than the $93.0 million loss in Q3 2023. The net loss for the nine months ended September 30, 2024, was $284.8 million, compared to $235.1 million in the same period of 2023. The increase in losses was attributed to rising operating costs, which totaled $124.4 million for Q3 2024, up from $110.1 million in Q3 2023, and $349.5 million for the nine months, compared to $284.8 million in the previous year.

The company’s cash and cash equivalents increased to $427.6 million as of September 30, 2024, from $391.6 million at the end of 2023. This liquidity is expected to support operations for at least the next 12 months, although Recursion anticipates needing additional capital to advance its drug candidates.

Strategically, Recursion has made notable acquisitions, including Valence Discovery Inc. and Cyclica Inc. in 2023, aimed at enhancing its drug discovery capabilities. Additionally, the company announced an agreement to acquire Exscientia plc, which is pending shareholder approval. In November 2023, Recursion entered a five-year agreement with Tempus Labs, Inc. for access to oncology data, with annual payments ranging from $22 million to $42 million.

Research and development expenses have increased, driven by platform and personnel costs as the company expands its capabilities. General and administrative expenses also rose, primarily due to higher salaries and software costs. The company continues to focus on its expansive pipeline targeting precision oncology and rare diseases, with potential annual sales exceeding $1 billion for some programs.

As of September 30, 2024, Recursion reported an accumulated deficit of $1.3 billion, reflecting its ongoing investment in drug development and the challenges of achieving profitability in the near term.

About RECURSION PHARMACEUTICALS, INC.

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