Recursion Reports Q2 2025 with $7M Sanofi Milestone, Announces Clinical Updates
Recursion Pharmaceuticals, a clinical-stage TechBio company headquartered in Salt Lake City, a founding member of BioHive, Utah’s life sciences collective, reported Q2 2025 financials with a net loss of $171.9 million, up from $97.5 million in Q2 2024, citing R&D expansion following its Exscientia merger and Tempus partnership. The company highlighted progress on internal assets REC-1245 (RBM39 degrader) and REC-617 (CDK7 inhibitor), alongside a $7 million milestone payment from Sanofi for a partnered immunology program.
Recursion’s pipeline update included early clinical data and target population refinements for REC-1245, an oral RBM39 degrader mimicking CDK12 loss without its toxicities, and REC-617, a CDK7 inhibitor in platinum-resistant ovarian cancer selected via causal AI and multi-omic analysis. Both programs remain in Phase 1/2 with further data expected in 2H25–1H26. A third asset, REC-102 (ENPP1), was acquired from Rallybio and is positioned as a potential oral treatment for hypophosphatasia, with Phase 1 expected in 2H26 and new data to be presented at ASBMR 2025.
The company also reiterated progress across its discovery partnerships. Sanofi has advanced four programs to milestone stage within 18 months, now leveraging Recursion OS 2.0’s phenomics capabilities. In its Roche/Genentech collaboration, Recursion has created a trillion-cell iPSC-derived knockout phenomap for neuroscience and advanced multiple GI-oncology phenomaps. Bayer and Merck KGaA partnerships also continue with early oncology and target ID programs.
Internal and Partnered Programs; Image: Recursion
Recursion highlighted continued advances in its platform, particularly the open-source release of Boltz-2, developed in collaboration with MIT and NVIDIA. As previously covered in June, Boltz-2 is a foundation model designed to jointly predict protein 3D structure and binding affinity, achieving near free energy perturbation (FEP) accuracy while operating over 1,000x faster than physics-based simulations. Since its open-source release in June 2025, Boltz-2 has been downloaded by over 40,000 unique users. The model underpins Recursion’s efforts to expand the Virtual Cell framework and accelerate generative ligand design across diverse cell types and disease areas beyond oncology.
The Recursion OS now integrates high-volume patient datasets from Tempus, Helix, and HealthVerity, supporting trial design and recruitment, including for REC-617.
Image: Recursion
Financially, Recursion ended Q2 with $533.8 million in cash, down from $603 million at year-end. Operating cash burn rose to $208.4 million for the first half of 2025, attributed to Exscientia integration and non-cash Tempus data usage costs. Revenue increased to $19.2 million, up from $14.4 million YoY, mostly from collaborations. The company projects its cash runway into Q4 2027 and anticipates over $100 million in additional partnership milestones by end of 2026.
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