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PHILADELPHIA - Recursion (NASDAQ: RXRX), a clinical stage TechBio company with a market capitalization of $2.27 billion, has entered into a licensing agreement with HealthVerity to utilize its real-world data (RWD) for enhancing clinical trial design and analytics. By integrating HealthVerity’s de-identified data on over 340 million individuals in the United States into its Recursion OS platform, the company aims to refine its approach to patient population analysis, trial design, feasibility assessments, and clinical operations. According to InvestingPro data, Recursion maintains a strong financial position with more cash than debt and a healthy current ratio of 3.81, providing stability for its ambitious development plans.
HealthVerity, recognized for its RWD technology and data exchange while ensuring privacy compliance, provides access to a comprehensive data ecosystem. This partnership enables Recursion to leverage linked data assets to streamline clinical development, reduce costs, and expedite novel therapeutic development.
Andrew Kress, CEO of HealthVerity, emphasized the transformative impact of RWD on clinical trials, stating that access to extensive real-world data allows companies like Recursion to make informed, data-driven decisions. Recursion’s AI-driven methodology incorporates diverse datasets and machine learning models to discover new insights into human biology and molecular design.
Najat Khan, PhD, Chief R&D Officer and Chief Commercial Officer at Recursion, highlighted the potential to revolutionize clinical development. The integration of HealthVerity’s data into Recursion OS is expected to optimize trial design through simulations, accelerate patient recruitment, and generate robust evidence for development and regulatory decisions. Khan also noted the focus on including underserved populations and delivering treatments more swiftly and effectively.
HealthVerity’s approach to data acquisition and governance aligns with HIPAA and other regulations, upholding high standards of patient privacy. The data provided supports various aspects of clinical development, from regulatory submissions to post-market studies.
This collaboration reflects Recursion’s commitment to leveraging technology and data to advance medicine. The company’s Recursion OS platform, supported by one of the world’s most powerful supercomputers, generates a vast proprietary dataset that informs their machine learning algorithms.
The information in this article is based on a press release statement from HealthVerity and Recursion.
In other recent news, Recursion Pharmaceuticals reported fourth-quarter revenues of $4.5 million, which represented a 57% year-over-year decrease and fell short of Cowen’s projection of $19 million. The company also posted a loss of $0.53 per share for the quarter, wider than the $0.41 loss analysts had forecast. Despite these financial setbacks, Recursion generated full-year 2024 revenue of $58.8 million, up from $44.6 million in 2023, primarily due to a $30 million payment from Roche and Genentech. The company has initiated a Phase 1 clinical study for REC-3565, targeting relapsed or refractory B-cell lymphomas, which aims to evaluate the safety and preliminary efficacy of the treatment.
In merger news, Recursion is expected to realize more than $100 million in synergies from its ongoing merger with EXAI, with most benefits anticipated by 2025. Analyst Brendan Smith from TD Cowen maintained a Hold rating on Recursion, noting the potential cost synergies and forthcoming data from key drug trials as critical factors for the company. Recursion’s research and development expenses increased by 30% year-over-year to $98 million, reflecting the expansion of its platform and operations. The company concluded the year with $603 million in cash and equivalents, compared to $401.4 million at the end of 2023, and expects its cash runway to extend into 2027.
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