| Metric | Value ($ M) | Q2 FY26 | Q3 FY25 |
|---|---|---|---|
| Revenue | 18.55 | 141.8% | 258.1% |
| Total Income | 18.55 | 141.8% | 258.1% |
| Expenditure | 141.73 | 0.6% | 20.1% |
| PBT | -119.01 | 9.2% | 26.6% |
| Net Profit | -119.04 | 9.1% | 26.6% |
| OPM | — | ||
| NPM | — | ||
| EPS | -0.22 | 12.0% | 38.9% |
Recursion Pharmaceuticals Announces $200M Offering, Clinical Updates, and Sanofi Partnership Milestone
15 Oct 2026 · 15 Oct, 6:21 pm
Summary
Recursion Pharmaceuticals announced the pricing of a $200 million underwritten offering of common stock, which, along with existing cash, is expected to extend its operational runway into 2029. The company also highlighted significant clinical and partnership updates, including Sanofi optioning a first-in-class immunology development candidate, triggering a $10 million milestone payment. Clinical data updates for REC-4881 in FAP showed substantial and durable polyp burden reductions, particularly in the upper GI tract, supporting a planned registrational trial initiation in the second half of 2027. Promising early data for REC-1245 in cancer patients were also presented, with a 45 mg dose selected for expansion cohorts.
Key Highlights
- 1
Recursion Pharmaceuticals announced the pricing of a $200 million underwritten offering of Class A common stock, expected to close on or about October 16, 2026.
- 2
Sanofi has optioned a potential first-in-class immunology development candidate from Recursion's collaboration, triggering a $10 million milestone payment to Recursion.
- 3
Recursion expects its existing cash, cash equivalents, and restricted cash balance of approximately $561 million as of September 30, 2026, to fund operations into 2029 following the offering.
- 4
Updated Phase 1b/2 data for REC-4881 in Familial Adenomatous Polyposis (FAP) showed a 47% median reduction in total polyp burden after 12 weeks of treatment, with 85% maintaining reductions below baseline after 12 weeks off treatment.
- 5
New upper GI data for REC-4881 demonstrated a 55% median reduction in polyp burden, with 92% of patients responding and 92% maintaining reductions below baseline after 12 weeks off treatment.
- 6
Phase 1 data for REC-1245 showed encouraging monotherapy activity with 2 confirmed partial responses in endometrial cancer and a 91.7% disease control rate at doses of 45 mg or higher.
- 7
Recursion is eligible for more than $300 million in additional milestones for the Sanofi-optioned program, with double-digit royalties on net product sales.
Management Comments
Najat Khan
The most important test of any technology platform in drug discovery is whether it can translate into differentiated medicines. Together with Sanofi, we tackled a difficult design problem against a dual target product profile with high potential and delivered a molecule that Sanofi has now selected for its development pipeline. With additional programs advancing across our collaboration, this milestone is another important demonstration of how our platform can translate computational capabilities into differentiated medicines — and do so repeatedly. Over the past 18 months, we've fundamentally transformed Recursion with a clear ambition: to repeatedly translate AI-driven discoveries into differentiated medicines for patients. And we're delivering. The proof points are stacking up — with REC-4881, we've demonstrated deep, durable reductions in precancerous polyps, particularly in the upper GI, where the unmet medical need is greatest, in a lifelong disease with no approved pharmacologic therapies. We're also seeing encouraging responses in heavily pretreated cancer patients with REC-1245, alongside continued validation of our platform through global pharma partnerships. Importantly, these are independent proof points emerging from the same integrated engine. This financing strengthens our ability to build on that momentum, advance our highest-conviction programs, deliver on upcoming clinical milestones, and build long-term value with focus and discipline.
Alyssa Johnsen
By combining Sanofi's drug discovery and clinical and translational knowledge in Immunology with Recursion's AI-driven platform, we were able to move with speed and precision in a space where that balance is notoriously hard to achieve. This new development candidate has potential to deliver a differentiated oral medicine with highly selective dual targeting that could be a meaningful advance for people living with inflammatory diseases who still lack adequate treatment options.
Informational and educational content only. Not investment advice.