Recursion Pharmaceuticals, Inc. Class A Common Stock Morgan Stanley 24th Annual Global Healthcare Conference

Yeah. Thank you so much, Sean, for the question, and it's great to be here. Look, I would say it, in fact, reinforces what we do. Recursion started with the whole concept of better understanding and decoding biology, so a huge amount of focus for what we do is around novel biology. I was, in fact, just recently in Shanghai two weeks ago, and just the speed and the execution and the prowess in that in optimizing known biology was really impressive to see. It's also reflected by all of the deals that have been done to date. But that next frontier has to be new and novel biology, really first-in-class targets. That's evidenced by what we have in our clinical program, REC-4881, REC-1245.

We'll talk a little bit more about that, I'm sure, which are both first-in-class targets that came from our engine, novel biology, or novel biology linked to the right indication, which is the case for REC-4881. The other thing I'll also say, we recently announced an unexplored new target that was optioned in neuroscience by Genentech. That comes from our proprietary data mass that we've generated. Taken together, that's the premise of what Recursion was really founded on around novel biology, and I think it becomes even more important, and some could say prescient, in terms of what's happening with the optimization and the speed in China as well.

Yeah. It's a great question, Sean. I think all of the above are, of course, important to take a drug and actually commercialize it ensures there's access to patients. For the stage of the company that Recursion is, FDA regulatory guidance, et cetera, is critically important, and we have a very productive relationship with regulators. I would say in addition to that, as we think about the commercial potential of our assets, of course, the other policies that you mentioned, MFN and others, are also critical.

Yeah, I know. Nine months, Sean. Nine months. Yeah. Counting. I'm just kidding.

Yeah. Here's what I would say.

Recursion is a fundamentally different company than 12 to 18 months ago. Recursion has transitioned from a company with a promise in the novel biology platform to a company where the engine, I like to call it, has been expanded to all parts that you need to make a drug, biology, chemistry, clinical. To do that, what we have done is we are building the body of evidence in the clinic and beyond in terms of differentiated outputs that are being generated by that engine. I think that is critical. You're starting to see repeatability across the progress we're making, both in our internal pipeline and also in our partnership, and I'll go through that just in a second. The third piece that's materially changed, Sean, as you mentioned, is just our level of productivity.

We have really leaned into AI agents, automation, as well as concentrating capital where we have the highest conviction. We do that every single day. Therefore, we've reduced our cost base about 40% pro forma post the integration with Exscientia. Just to give an example, it's good to say those three pillars, but just to give an example in terms of where we're seeing that body of evidence translating from the engine. Number one is the first-in-class program in our clinic. REC-4881, first in class for FAP. Total addressable market, just to remind everyone, nothing approved, this is an oral drug, is over $10 billion. We also have multiple programs with one, for instance, REC-1245, RBM39, first-in-class target identified in our platform, the degrader made on our platform, and should have more data later this year. That's just one. Then we've also made a lot of progress with our partners.

We've just crossed over $525 million in upfront and milestones where we're actually advancing first-in-class or intractable biology programs with our partners. These are not isolated events. I think that's really important to understand. You're seeing this repeatability across from novel biology, novel programs, to the clinic, and that's all produced by one recursive learning platform that we've been building over a decade. The fact that we're doing that with better productivity, as I mentioned, 40% less of our cost base, I think it's a testament to if you get better at learning, you should be able to predict more going forward and be able to validate that in the clinic.

In a nutshell, I will say the company has really transformed to a company with differentiated assets powered by an end-to-end AI engine with repeatability that's coming through both our internal pipeline and our partnerships.