Recursion Pharmaceuticals’ Q4 2024 Earnings Call: Key Insights
On February 28, 2025, Recursion Pharmaceuticals, Inc. (NASDAQ: RXRX ) held its Q4 2024 earnings conference call. The call was hosted by Chris Gibson, Co-Founder and CEO, Lina Nilsson, Senior Vice President and Head of Platform, and Ben Taylor, Chief Financial Officer. Here are the major highlights from the call:
Financial Performance
Recursion reported a net loss of $56.2 million for Q4 2024, which was wider than the net loss of $44.8 million in the same period in the previous year. The increase in net loss was primarily due to higher research and development expenses. The company’s total revenue for the year was $11.5 million, an increase of 40% compared to 2023. The revenue growth was driven by higher revenue from collaboration partners and milestone payments.
Pipeline Updates
Recursion provided updates on its pipeline, including:
- RXC004: The company announced positive results from a Phase 1b clinical trial of RXC004 for the treatment of systemic sclerosis. The trial met its primary endpoint of safety and tolerability, and Recursion plans to initiate a Phase 2 trial in the second half of 2025.
- RXC007: Recursion announced that it has initiated a Phase 1 clinical trial of RXC007, a potential treatment for Alzheimer’s disease. The trial is expected to enroll approximately 40 healthy volunteers and will assess the safety, tolerability, and pharmacokinetics of the drug.
- RXC006: The company reported that it has initiated a Phase 2 trial of RXC006 for the treatment of atopic dermatitis. The trial is expected to enroll approximately 150 patients and will assess the safety, efficacy, and pharmacokinetics of the drug.
Collaborations and Partnerships
Recursion announced several collaborations and partnerships:
- Recursion entered into a collaboration with AstraZeneca to discover and develop novel small molecule therapeutics for immunological diseases using Recursion’s drug discovery platform.
- The company announced a collaboration with the University of Utah Health to discover and develop new treatments for rare diseases using Recursion’s platform.
- Recursion announced a collaboration with Merck KGaA to discover and develop novel small molecule therapeutics for neurodegenerative diseases using Recursion’s platform.
Impact on Me
As an individual investor, Recursion’s Q4 2024 earnings call provided valuable insights into the company’s financial performance and pipeline progress. The positive results from the Phase 1b clinical trial of RXC004 for systemic sclerosis and the initiation of clinical trials for RXC007 and RXC006 are encouraging signs of progress in the development of new treatments for diseases with high unmet medical need. Additionally, the collaborations and partnerships announced during the call demonstrate Recursion’s ability to leverage its platform to generate new opportunities for drug discovery and development.
Impact on the World
From a global perspective, Recursion’s work on new treatments for diseases such as systemic sclerosis, Alzheimer’s disease, and atopic dermatitis has the potential to make a significant impact on the lives of millions of people. The collaborations and partnerships announced during the call with AstraZeneca, the University of Utah Health, and Merck KGaA demonstrate the company’s commitment to working with leading industry partners to advance the development of new treatments for these and other diseases. Additionally, Recursion’s innovative approach to drug discovery using artificial intelligence and machine learning has the potential to revolutionize the pharmaceutical industry and accelerate the discovery and development of new treatments for a wide range of diseases.
Conclusion
Recursion Pharmaceuticals’ Q4 2024 earnings call provided investors and stakeholders with valuable insights into the company’s financial performance, pipeline progress, and collaborations and partnerships. The positive results from clinical trials and the initiation of new trials, along with the company’s collaborations with leading industry partners, demonstrate Recursion’s commitment to advancing the development of new treatments for diseases with high unmet medical need. The potential impact of Recursion’s work on the lives of millions of people and the pharmaceutical industry as a whole is significant, and investors should continue to monitor the company’s progress closely.
