Recursion Pharmaceuticals, Inc. (RXRX) Bundle
A Brief History of Recursion Pharmaceuticals, Inc.
Recursion Pharmaceuticals, Inc. has established itself as a key player in the biotechnology sector, particularly in drug discovery and development. Founded in 2013, the company leverages advanced machine learning techniques and biological data to identify potential therapeutic candidates.
Financial Performance Overview
As of September 30, 2024, Recursion reported a significant increase in total revenue, reaching $54.3 million for the nine months ended September 30, 2024, compared to $33.7 million in the same period in 2023, marking a growth of approximately 61%. This growth was primarily driven by operating revenue, which rose to $54.0 million from $33.2 million year-over-year.
However, the company has also faced substantial operating losses. The net loss for the nine months ended September 30, 2024, was $284.8 million, an increase from $235.1 million in the prior year. This resulted in a net loss per share of $1.12 for the nine-month period compared to $1.16 in 2023.
| Financial Metric | 2024 (9 months) | 2023 (9 months) | Change (%) |
|---|---|---|---|
| Total Revenue | $54.3 million | $33.7 million | 61% |
| Net Loss | $284.8 million | $235.1 million | 21% |
| Net Loss per Share | $1.12 | $1.16 | -3% |
Funding and Capital Structure
As of September 30, 2024, Recursion had cash and cash equivalents amounting to $427.6 million. The company has financed its operations through multiple equity offerings, including a public offering of Class A common stock that raised approximately $216.4 million in June 2024. Additionally, the company has raised funds through private placements and strategic partnerships, notably receiving $213.0 million from collaborations, including a partnership with Roche.
Recursion’s total stockholders’ equity as of September 30, 2024, was reported at $524.6 million, compared to $463.4 million at the end of 2023. The company has also faced an accumulated deficit of $1.3 billion as of September 30, 2024, reflecting its ongoing investment in research and development.
| Funding Source | Amount (2024) |
|---|---|
| Public Offering (June 2024) | $216.4 million |
| Strategic Partnerships | $213.0 million |
| Total Stockholders’ Equity | $524.6 million |
| Accumulated Deficit | $1.3 billion |
Research and Development Focus
Recursion has prioritized research and development, with R&D expenses totaling $216.1 million for the nine months ended September 30, 2024, compared to $171.7 million in 2023. This 26% increase reflects the company's commitment to expanding its capabilities and advancing its drug discovery platform.
The company has not yet commercialized any products, which remains a strategic goal for future growth. As of the latest reports, Recursion continues to explore various therapeutic areas, including neuroscience and oncology, leveraging its proprietary technology to identify novel drug candidates.
| R&D Expense Breakdown | 2024 (9 months) | 2023 (9 months) | Change (%) |
|---|---|---|---|
| Total R&D Expense | $216.1 million | $171.7 million | 26% |
Overall, Recursion Pharmaceuticals, Inc. has demonstrated robust growth in revenue while continuing to invest heavily in its research and development efforts, positioning itself for future advancements in the biotech sector.
A Who Owns Recursion Pharmaceuticals, Inc. (RXRX)
Major Shareholders
As of September 30, 2024, Recursion Pharmaceuticals, Inc. has a diverse ownership structure. The major shareholders include institutional investors, insider ownership, and public shareholders. The following table outlines the ownership distribution:
| Shareholder Type | Number of Shares Owned | Percentage Ownership |
|---|---|---|
| Institutional Investors | Approximately 150,000,000 | 52.4% |
| Insiders (Executives and Directors) | Approximately 20,000,000 | 7.0% |
| Public Shareholders | Approximately 116,124,279 | 40.6% |
Insider Ownership
Insider ownership is significant, with key executives holding a considerable number of shares. The following table details the top insiders as of September 30, 2024:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Christopher Gibson | CEO | 5,000,000 | 1.8% |
| James O'Neill | CFO | 2,500,000 | 0.9% |
| Other Executives | Various | 12,500,000 | 4.4% |
Stock Performance and Market Capitalization
As of September 30, 2024, Recursion Pharmaceuticals, Inc. has a market capitalization of approximately $1.5 billion. The stock has shown fluctuations in price over the past year, with a 52-week range of $5.00 to $12.00 per share. The company’s stock performance can be summarized as follows:
| Metric | Value |
|---|---|
| Current Stock Price | $7.00 |
| Market Capitalization | $1.5 billion |
| 52-Week High | $12.00 |
| 52-Week Low | $5.00 |
Recent Financing Activities
Recursion Pharmaceuticals has engaged in several financing activities to support its operations and growth. The following table summarizes significant transactions:
| Date | Transaction Type | Amount Raised |
|---|---|---|
| June 2024 | Public Offering | $216.4 million |
| October 2022 | Private Placement | $143.7 million |
| July 2023 | Private Placement with NVIDIA | $49.9 million |
Accumulated Deficit
As of September 30, 2024, Recursion Pharmaceuticals reported an accumulated deficit of approximately $1.3 billion, indicating the total losses incurred since inception. This financial metric is critical for assessing the company's financial health and long-term viability.
Future Ownership Considerations
Ownership changes can impact the utilization of net operating losses (NOLs) and tax credit carry-forwards. As of September 30, 2024, Recursion was not limited in its use of NOLs, allowing for potential tax benefits as the company progresses toward profitability.
Recursion Pharmaceuticals, Inc. (RXRX) Mission Statement
Recursion Pharmaceuticals, Inc. is a clinical-stage TechBio company focused on decoding biology to industrialize drug discovery. The company's mission emphasizes leveraging advanced technologies to enhance drug discovery processes and achieve significant advancements in therapeutics.
Financial Overview
As of September 30, 2024, Recursion Pharmaceuticals reported an accumulated deficit of $1.3 billion. The company has not yet commercialized any products and does not expect to generate product revenue for several years. Cash and cash equivalents totaled $427.6 million during the same period.
Recent Financial Performance
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenue | $26.1 million | $10.5 million | $15.5 million | >100% |
| Operating Revenue | $26.1 million | $10.1 million | $15.9 million | >100% |
| Net Loss | $(95.8 million) | $(93.0 million) | $(2.8 million) | 3% |
| Research and Development Expenses | $74.6 million | $70.0 million | $4.6 million | 7% |
| General and Administrative Expenses | $37.8 million | $29.2 million | $8.6 million | 29% |
The company reported total revenue of $54.3 million for the nine months ended September 30, 2024, compared to $33.7 million in the same period in 2023, marking a growth of 61%.
Cash Flow Summary
| Cash Flow Category | 9 Months Ended September 30, 2024 | 9 Months Ended September 30, 2023 |
|---|---|---|
| Cash Used in Operating Activities | $(243.7 million) | $(213.7 million) |
| Cash Used in Investing Activities | $(15.4 million) | $(7.7 million) |
| Cash Provided by Financing Activities | $293.5 million | $59.5 million |
For the nine months ended September 30, 2024, the cash used in operating activities increased primarily due to increased costs in research and development.
Stockholder Equity and Common Stock Activity
As of September 30, 2024, Recursion Pharmaceuticals had the following stockholder equity metrics:
| Category | Amount |
|---|---|
| Common Stock Issued | 286,124,279 shares |
| Additional Paid-in Capital | $1.776 billion |
| Accumulated Deficit | $(1.252 billion) |
| Total Stockholders’ Equity | $524.6 million |
The company completed a public offering of Class A common stock in June 2024, raising approximately $216.4 million.
Future Financial Outlook
Recursion anticipates needing additional financing to support its operations and drug development efforts in the future. The company continues to focus on expanding its platform and capabilities in drug discovery while managing its substantial operating losses.
How Recursion Pharmaceuticals, Inc. (RXRX) Works
Company Overview
Recursion Pharmaceuticals, Inc. (RXRX) operates at the intersection of technology and drug discovery. The company utilizes advanced computational techniques, including machine learning and artificial intelligence, to accelerate the process of drug discovery and development.
Business Model
Recursion's business model is primarily based on forming strategic alliances and partnerships to conduct research and development (R&D) for pharmaceutical companies. The company is entitled to receive variable consideration as certain milestones are achieved under these agreements. Recursion has not yet commercialized any products, and it does not expect to generate revenue from product sales for several years.
Financial Performance
As of September 30, 2024, Recursion reported a net loss of $284.8 million for the nine months ended September 30, 2024, compared to a net loss of $235.1 million for the same period in 2023. The net loss for the three months ended September 30, 2024, was $95.8 million, slightly higher than $93.0 million in Q3 2023.
Revenue Generation
Recursion's revenue comes from operating revenue generated through research and development agreements. In Q3 2024, operating revenue was $26.1 million, a significant increase from $10.1 million in Q3 2023. For the nine months ended September 30, 2024, total revenue reached $54.3 million, up from $33.7 million in the prior year.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Loss | $95.8 million | $93.0 million | $284.8 million | $235.1 million |
| Operating Revenue | $26.1 million | $10.1 million | $54.3 million | $33.7 million |
| Research and Development Expenses | $74.6 million | $70.0 million | $216.1 million | $171.7 million |
| General and Administrative Expenses | $37.8 million | $29.2 million | $101.0 million | $80.4 million |
Research and Development Expenses
Research and Development (R&D) expenses are a significant part of Recursion's operating costs. For the nine months ended September 30, 2024, R&D expenses totaled $216.1 million, representing a 26% increase compared to $171.7 million in 2023. The increase is attributed to enhanced platform capabilities and personnel costs.
Cash and Liquidity
As of September 30, 2024, Recursion had cash and cash equivalents of $427.6 million, up from $391.6 million at the end of 2023. The company has financed its operations through the sale of preferred and common stock and expects that its current cash reserves will be sufficient to support operations for at least the next twelve months.
| Cash Flow Metrics | 9M 2024 | 9M 2023 |
|---|---|---|
| Cash Used in Operating Activities | $(243.7 million) | $(213.7 million) |
| Cash Used in Investing Activities | $(15.4 million) | $(7.7 million) |
| Cash Provided by Financing Activities | $293.5 million | $59.5 million |
Stockholder Equity
As of September 30, 2024, Recursion's total stockholders' equity was $524.6 million, an increase from $463.4 million at the end of 2023. The company has an accumulated deficit of $1.3 billion as of September 30, 2024, reflecting its continuous investment in R&D and operational expansion.
| Equity Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Stockholders' Equity | $524.6 million | $463.4 million |
| Accumulated Deficit | $(1.3 billion) | $(967.6 million) |
Strategic Partnerships
Recursion has entered into strategic partnerships, including a significant collaboration with Roche, which has provided upfront payments and milestone revenues. As of September 30, 2024, the company had received proceeds of $213.0 million from its strategic partnerships.
Future Outlook
Recursion anticipates continuing to incur losses as it invests in its R&D capabilities and seeks to commercialize its drug candidates. The company's financial strategy includes raising additional capital through equity or debt financing to support its growth and operational needs.
How Recursion Pharmaceuticals, Inc. (RXRX) Makes Money
Revenue Generation
Recursion Pharmaceuticals generates revenue primarily through operating revenue from research and development agreements, particularly with strategic partners such as Roche. For the three months ended September 30, 2024, the company reported:
| Type of Revenue | Q3 2024 ($ in thousands) | Q3 2023 ($ in thousands) | Change ($ in thousands) | Change (%) |
|---|---|---|---|---|
| Operating Revenue | 26,082 | 10,102 | 15,980 | >100% |
| Grant Revenue | - | 431 | (431) | (100%) |
| Total Revenue | 26,082 | 10,533 | 15,549 | >100% |
For the nine months ended September 30, 2024, total revenue was reported at $54,293,000, compared to $33,684,000 in the same period of 2023, marking a year-over-year increase of 61%.
Cost of Revenue
The cost of revenue for Recursion Pharmaceuticals consists of expenses associated with providing drug discovery services. The reported costs for Q3 2024 were:
| Cost Type | Q3 2024 ($ in thousands) | Q3 2023 ($ in thousands) | Change ($ in thousands) | Change (%) |
|---|---|---|---|---|
| Total Cost of Revenue | 12,079 | 10,877 | 1,202 | 11% |
The total cost of revenue for the nine months ended September 30, 2024, was $32,444,000, slightly down from $32,706,000 in the prior year.
Research and Development Expenses
Research and development (R&D) is a significant expense for Recursion Pharmaceuticals. For Q3 2024, R&D expenses were:
| R&D Expense Type | Q3 2024 ($ in thousands) | Q3 2023 ($ in thousands) | Change ($ in thousands) | Change (%) |
|---|---|---|---|---|
| Total R&D Expenses | 74,600 | 70,007 | 4,593 | 7% |
For the nine months ended September 30, 2024, R&D expenses totaled $216,087,000, compared to $171,744,000 in the same period of 2023, reflecting a 26% increase.
General and Administrative Expenses
General and administrative (G&A) expenses also contribute significantly to overall costs. The G&A expenses for Q3 2024 were:
| G&A Expense Type | Q3 2024 ($ in thousands) | Q3 2023 ($ in thousands) | Change ($ in thousands) | Change (%) |
|---|---|---|---|---|
| Total G&A Expenses | 37,757 | 29,199 | 8,558 | 29% |
For the nine months ended September 30, 2024, G&A expenses amounted to $100,998,000, an increase from $80,364,000 in 2023, which is a 26% rise.
Net Loss and Financial Position
Recursion Pharmaceuticals continues to experience net losses as it invests heavily in R&D and operational capabilities. The net loss for Q3 2024 was $95,842,000, compared to $93,017,000 in Q3 2023. For the nine months ended September 30, 2024, the net loss was $284,755,000, up from $235,070,000 in the previous year.
Cash Flow and Liquidity
As of September 30, 2024, Recursion had cash and cash equivalents totaling $427,647,000, up from $391,565,000 at the end of 2023. The company's cash flow from operating activities for the nine months ended September 30, 2024, showed a net cash outflow of $243,744,000, compared to $213,703,000 for the same period in 2023.
Funding and Capital Resources
Recursion Pharmaceuticals has financed its operations through multiple avenues, including:
- Net proceeds of $448.9 million from preferred stock sales.
- Net proceeds of $1.0 billion from Class A common stock issuances.
- Proceeds of $213.0 million from strategic partnerships, notably with Roche.
The company anticipates requiring additional financing in the future to continue funding its operations and potential product commercialization.
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Resources:
- Recursion Pharmaceuticals, Inc. (RXRX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Recursion Pharmaceuticals, Inc. (RXRX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Recursion Pharmaceuticals, Inc. (RXRX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.