Recursion Pharmaceuticals Reports $463.6M Net Loss and $58.8M Revenue in 2024

Recursion Pharmaceuticals, Inc. reported a net loss of $463.6 million for the year ended December 31, 2024, compared to a net loss of $328.1 million in 2023. Total revenue increased to $58.8 million in 2024 from $44.6 million in 2023, driven primarily by a $30 million acceptance fee from a collaboration with Roche and Genentech for a completed neuroscience phenomap. Operating revenue, generated from research and development agreements, increased by 33.3% to $58.5 million in 2024. The increase in operating costs and expenses, which totaled $537.8 million in 2024, was primarily due to increased research and development and general and administrative expenses, reflecting the company's expansion and platform upgrades, as well as the inclusion of Exscientia's results following the November 2024 acquisition.

Significant developments in 2024 included the completion of the Exscientia acquisition, resulting in a combined, fully integrated technology-first drug discovery platform. This merger, the largest in the TechBio space to date, brought together Recursion's strengths in scaling biological insights and Exscientia's expertise in precision chemistry. The company also initiated three new clinical studies (DAHLIA, TUPELO, and ALDER) and received IND clearance or CTA approval for several other programs. Furthermore, Recursion achieved key milestones in collaborations with Roche and Genentech (including a $30 million milestone payment), Sanofi ($15 million in milestone payments), Bayer, and Merck KGaA. The company also made advancements in its platform, including breakthroughs in foundation models (Phenom, MolPhenix, MolGPS) and the integration of real-world patient datasets.

Recursion's pipeline now includes 10 clinical and preclinical programs, with approximately 10 key clinical milestones expected over the next 18 months. Promising interim results were reported for REC-617 (CDK7 inhibitor) and REC-994 (superoxide scavenger). The company highlighted REC-1245, a first-in-class RBM39 degrader, which reached IND-enabling studies in just 18 months and dosed its first patient in Q4 2024. The company also emphasized its progress towards a "virtual cell" approach, integrating population-scale patient data, pathway-level data, protein-level insights, and atomistic-level simulations to accelerate drug development.

Recursion's 2024 progress also included the development of its ClinTech platform, leveraging AI and automation to transform clinical development. The company highlighted partnerships with Tempus and Helix to access large patient datasets, and with Faro Health to industrialize clinical workflows. As of January 31, 2025, Recursion had 395,072,094 shares of Class A common stock and 6,918,575 shares of Class B common stock outstanding. The aggregate market value of Class A common stock held by non-affiliates was $1,508.3 million as of June 30, 2024. The company's employee headcount exceeded 800 as of year-end 2024.

Recursion's outlook anticipates up to 10 additional clinical program milestones over the next 18 months, further advancements in AI-driven discovery, and continued progress in monetizing assets within its pipeline. The company expects to continue investing in its leading position in the TechBio space, viewing it as a generational opportunity for value creation. The company also noted a material weakness in its internal control over financial reporting related to revenue recognition processes, which remains unremediated as of December 31, 2024.