Recursion Pharmaceuticals, Inc.

Hello everybody and welcome to Recursion's third quarter 2025 learnings 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. 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 Nijat Khan is going to take over the role of CEO, President, and Director of Recursion. I've been working with Nijat 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. 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. And finally, I want to say a huge thank you to our entire board and especially to our chairman, Rob Hirschberg, He's been an amazing chair and an incredible mentor to myself and Najat. 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. 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. Najat?

Thank you, Chris. It is such an honor to step into the big role to be CEO and president of Accursion. And I want to thank you. I want to thank the board and just our incredible team for the trust and partnership. And Chris, first for a few minutes, 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. And you've not just been instrumental in building the company, of course, but also creating a new sector that never existed before, really, truly blending the best of technology and science to make medicines and radically improve patient lives. There's so much to do. 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 in all of your many roles. I just want to say a few other words, too. Look, when I joined Recursion 18 months ago, I was drawn to the bold ambition, but an ambition in action. And, you know, what an 18 months has been. step one was the in the special combination with xin share to really truly build that end-to-end tech stack as we like to call it engine and also the data generation we've talked a lot about models but proprietary high quality data is critical in a critical mode to what we do Building our ClinTech platform. We're 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. Chris will share a little bit more of some of the latest updates. They're from Roche. And doing so with a discipline and urgency that I think patients will be proud of. 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. 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. My focus, you know, and I'll listen more and think more over the coming weeks, but really is going to be translating these platform insights into repeatable clinical proof, whether it's through our 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 strong. The vision is clear. 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 because we're doing something that there's no bloop in front. It hasn't been done before. It's also deeply meaningful. for the patients that we serve and for the future that we're building together. So I'm so excited. Couldn't be prouder of the next phase. Looking forward to partnering with Chris and the rest of the broader team, exceptional team, if I say so, to define that next phase and the next chapter for recursion.

Thanks, Nijat. And with that out of the way, I think we should get back 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, 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 for really affecting patient lives. 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. 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. 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, 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 neuromap. And I want to point out that this brings our total cash inflows from partnerships to more than half a billion dollars. 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. So let's talk a little bit about the Russian Genentech collaboration. This is a collaboration that's a decade-long focus in neuroscience and GI oncology. We've already been able to deliver four whole genome phenomaps in our GI oncology space, generating over 100 billion GI oncology-relevant cells. 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. But what we announced last week was that in addition to the whole genome arrayed CRISPR knockout map 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 neuronal cells, 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 phenomaps that we believe have real potential, not only to lead to novel target options in the future with our colleagues at Roche Finantec, but I hope, really meaningful medicines for patients in the field of neuroscience where all of us agree, there's a lot of work to do. 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. And these digital maps allow us to move from this empirical sort of one at a time approach into really a search function where Today, our colleagues at Roche Genentech, our team can just type in any gene in the micro wheel map or the IPSE-derived neuronal map, and they can see the relationships across the rest of the genome. This gives us incredible insight. novel pathways, novel targets. And it's extraordinarily significant, I think, for our teams to now be able to do this, not just in the neuron, but in the immune cell of the brain. So really, really excited about this. I know our colleagues at Roche and Genentech are too. And to give you a sense of the road that we've taken to get here, this was something that I think many people did not think would be possible. First, our team had to generate more than 100 billion microglial cells. Then we had to figure out how to get more than 100,000 different sgRNAs into these cells so we could knock out 17,000 plus genes with multiple guides per gene. And we were able to do this generating nearly 50 million microglial cell images. And we used our supercomputer, BioHive 2, still, we believe, the fastest supercomputer wholly owned by any biopharma company, at least for a couple more weeks or months until Lilly potentially overtakes us, to generate this first-of-its-kind microglia map. And from this map, we've already started mining for novel biological insights. And we have the team and the equipment and the expertise to validate those insights to deliver programs to our colleagues at Roche and Genentech. And our hope is that that will lead to potential new therapeutic approaches. So I'm so proud of the team for all the work they've done. I'm so proud of this particular map because I think it has extraordinary potential in the field of neuroscience. With that, I'm going to turn it over to Najat to talk a little bit about how our platform is fueling our pipeline.