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SALT LAKE CITY - Clinical stage TechBio company Recursion (NASDAQ: RXRX), currently valued at $1.69 billion, has initiated the first patient dosing in its Phase 1 EXCELERIZE clinical study of REC-3565, a potential new therapy for relapsed or refractory B-cell lymphomas. According to InvestingPro data, the company maintains a strong financial position with more cash than debt on its balance sheet, though it's currently experiencing significant cash burn as it advances its clinical programs. The study aims to evaluate the safety and preliminary efficacy of REC-3565, which was developed using the company's AI-driven Recursion OS platform.
REC-3565, a MALT1 inhibitor, is designed to potentially improve outcomes for patients with B-cell malignancies who have limited treatment options. MALT1 is a protease that contributes to the proliferation of malignant B-cells in hematological cancers. By targeting this protein, REC-3565 may help overcome resistance to current treatments and provide a new therapeutic option either as a standalone treatment or in combination with other inhibitors.
The EXCELERIZE study is an open-label, multicenter dose-escalation trial that will be conducted in two parts. Part A will focus on monotherapy dosing to establish a recommended dose for Part B, which will then evaluate combination regimens. The study will assess the safety, tolerability, pharmacokinetics, pharmacodynamics, and preliminary efficacy of REC-3565.
According to Recursion, the allosteric design of REC-3565 enhances its potency, selectivity, and safety profile, potentially reducing liver toxicity risks associated with UGT1A1 inhibition, a problem seen in other MALT1 inhibitors. This feature could allow for safer dose escalation and higher target engagement, which may lead to better clinical efficacy.
Recursion's Chief R&D Officer and Chief Commercial Officer, Najat Khan, highlighted the rapid development of REC-3565, crediting the company's AI-powered platform for delivering a lead candidate in just 15 months. Chief Medical Officer David Mauro emphasized the company's commitment to advancing patient-centric solutions, with REC-3565 representing a potential best-in-class MALT1 inhibitor.
Approximately 41,000 patients with relapsed and/or refractory CLL and B-cell lymphomas in the U.S. and EU5 are eligible for treatment each year, highlighting the significant market opportunity for REC-3565.
Recursion, listed on NASDAQ as RXRX, is a company that combines technology and biology to industrialize drug discovery and has offices across North America and the UK. This news is based on a press release statement from Recursion Pharmaceuticals.
In other recent news, Recursion Pharmaceuticals reported fourth-quarter revenues of $4.5 million, marking a 57% decrease from the previous year and falling short of Cowen's $19 million projection. The shortfall was primarily due to the timing of projects with Roche/Genentech. Recursion also posted a loss of $0.53 per share for the quarter, which was wider than the $0.41 loss analysts had forecasted, and revenue came in significantly below the consensus estimate of $13.4 million. For the full year 2024, the company generated $58.8 million in revenue, an increase from $44.6 million in 2023, largely driven by a $30 million payment from Roche and Genentech.
The company's research and development expenses increased by 30% year-over-year to $98 million, and general and administrative expenses rose 61% year-over-year to $77 million, influenced by costs related to its merger with EXAI. Recursion highlighted anticipated cost synergies from this merger, expecting more than $100 million in synergies, mostly to be realized by 2025. The company also pointed to promising early efficacy data for clinical programs REC-617 and REC-994, and the initiation of three new clinical studies.
Analyst Brendan Smith from TD Cowen maintained a Hold rating on Recursion's shares, noting the potential benefits from the ongoing merger with EXAI and upcoming data from key drug trials. Recursion ended the year with $603 million in cash and equivalents, compared to $401.4 million at the end of 2023. The company expects its cash runway to extend into 2027, emphasizing its progress in advancing its AI-powered drug discovery platform and clinical pipeline.
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