Recursion’s homegrown assets hardest hit in AI-discovered pipeline cull

Title

Recursion Pharmaceuticals Slashes Homegrown AI-Discovered Pipeline, Prioritizing Oncology and Rare Diseases

Keywords

Recursion Pharmaceuticals
AI drug discovery
pipeline cut
oncology
rare diseases
homegrown assets
Exscientia merger
clinical trials
cash burn
asset deprioritization

Key Facts

Recursion Pharmaceuticals has executed a major pipeline cull, with its homegrown assets—those internally discovered using proprietary AI platforms—among the hardest hit1 5.
Of the five deprioritized programs, a significant portion were internally developed, signaling a deliberate shift in R&D strategy and increased selectivity in portfolio investment1.
The company has sharpened its focus on oncology and rare diseases, which have been consistent priorities. The pipeline cut involved halting or pausing programs such as REC-4539 for small-cell lung cancer and discontinuing late-stage assets related to neurofibromatosis type 2 (NF2), cerebral cavernous malformation (CCM), and C. difficile infection5.

- These decisions come amid heightened scrutiny of cash reserves:
Recursion’s cash, cash equivalents, and restricted cash dropped 16% to $509 million as of March 31, 2025, compared to $603 million at the end of 2024, highlighting the need to contain unsustainable cash burn5.
- The pipeline pruning follows Recursion’s recent merger with AI pioneer Exscientia and workforce reductions, consolidating to around 800 employees from a prior combined total of about 9005.
- While some investors saw the cull as necessary and expected, it triggered a sharp 17% drop in Recursion’s stock price, reflecting skepticism around the company’s near-term prospects5.
- Despite these challenges, Recursion continues to leverage its vast data generation capabilities—running millions of experiments weekly and amassing over 40 petabytes of biological data—to fuel future AI-driven drug discovery efforts4.
- Notably, ongoing programs such as REC-4881 for familial adenomatous polyposis and REC-3565 for B-cell lymphoma (EXCELERIZE study) remain prioritized, with both clinical and regulatory momentum3.
- The strategic realignment aims to position Recursion for high-impact opportunities, underpinned by AI-ML integration and strategic partnerships, even as the company undergoes significant transition2 3.