Recursion Pharmaceuticals Q3 net loss narrows more than expected on lower costs
Overview
US AI drug discovery firm's Q3 operating revenue rose, beating analyst expectations
Q3 net loss narrowed year-over-year and beat analyst expectations
Company extended expected cash runway into 2029 after recent capital raise
Outlook
Company expects to initiate a registrational trial for REC-4881 in 2H 2027, pending FDA discussions
Preliminary dose expansion data for REC-1245 in endometrial cancer expected in 2H 2027
Recursion reiterates 2026 cash operating expense guidance at less than $375 mln, 2027 at less than $360 mln
Result Drivers
SANOFI MILESTONE PAYMENT - Q3 revenue growth was driven primarily by a $10 mln milestone payment from Sanofi for an immunology small molecule program
LOWER R&D EXPENSES - Research and development expenses fell year-over-year, mainly due to the absence of prior-year costs related to acquiring full rights to REC-102
REDUCED ADMINISTRATIVE COSTS - General and administrative expenses declined, attributed to lower infrastructure technology and professional service costs
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Operating Revenue | Beat | $18.06 mln | $14.78 mln (7 Analysts) |
Q3 Net Loss | Beat | $119.04 mln | $121.71 mln (4 Analysts) |
Q3 Pretax Loss | Beat | $119.01 mln | $125 mln (1 Analyst) |
Q3 Operating Income | -$123.18 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the biotechnology & medical research peer group is "buy."
Wall Street's median 12-month price target for Recursion Pharmaceuticals, Inc. is $6.00, about 48.9% above its October 30 closing price of $4.03
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)