Press Release: Recursion Reports Second Quarter Financial Results; Genentech Options First Neuroscience Target into Early Discovery Program

   -- Genentech advanced the collaboration's first neuroscience target into a 
      joint early discovery program, providing early evidence that Recursion's 
      platform can generate novel, biologically validated targets for drug 
      discovery 
 
   -- REC-4881 (MEK1/2 inhibitor): Additional Phase 2 data in Familial 
      Adenomatous Polyposis (FAP) to be presented at the Presidential Plenary 
      session at leading hereditary GI annual meeting in November 2026 
 
   -- REC-7735 (PI3K<ALPHA> H1047R inhibitor): IND cleared, Phase 1/2 trial 
      start in 2H26; a >100× mutant-selective PI3K<ALPHA> H1047R inhibitor 
      designed to improve therapeutic index by enabling deep suppression of the 
      most common activating PI3K<ALPHA> mutation while sparing wild-type 
      PI3K<ALPHA> 
 
   -- Reduced 2026 cash operating expense guidance to <$375 million (from <$390 
      million) 

SALT LAKE CITY, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Recursion (Nasdaq: RXRX) a leading clinical stage TechBio company decoding biology to radically improve lives, today reported business updates highlighting strong continued pipeline execution, clinical progress and platform advancement, as well as financial results for its second quarter ended June 30, 2026.

Recursion will host an Earnings Call on August 5, 2026 at 8:00 am ET / 6:00 am MT / 1:00 pm BST from Recursion's X, LinkedIn, and YouTube accounts giving analysts, investors, and the public the opportunity to ask questions of the Company by submitting questions here: Question Form.

"Recursion has reached a pivotal point where our AI-native platform is translating unique data into potential first-in-class therapeutic opportunities," said Najat Khan, Ph.D., Chief Executive Officer of Recursion. "The advancement of the first unexplored neuroscience target from our collaboration with Roche and Genentech into an early discovery program is an important proof point. Finding new targets in neuroscience has historically been challenging, and this milestone highlights our ability to uncover novel biology in areas where conventional approaches have struggled. We believe that combining disease-relevant data at scale, foundation models, an end-to-end learning system, and deep scientific collaboration can uncover new biology in ways that were not previously possible."

Business Highlights

Genentech Advances First Neuroscience Target into Early Discovery Program

Genentech has exercised the first Validated Target Option under the companies' neuroscience collaboration, advancing a previously unexplored neuroscience target into a small molecule early discovery program.

The milestone provides additional early evidence that Recursion's AI-native platform can both discover and play a key role experimentally validating novel therapeutic targets in neuroscience, one of medicine's most challenging therapeutic areas, where decades of research have largely focused on a limited number of well-studied targets.

In partnership with Roche and Genentech, Recursion built the first whole-genome CRISPR knockout map generated from a subset of over 1 trillion internally manufactured iPSC-derived neuronal cells. Predictions generated from the Maps were experimentally evaluated through a rigorous validation process developed jointly with Genentech. Candidate targets advanced through successive stages of pathway validation, functional validation, and disease validation to determine whether modulating the target altered neurological disease phenotype. Only targets that consistently demonstrated compelling evidence across each stage advanced into a validation package. To learn more about how we collaborated to build disease-relevant whole genome maps of biology, see our blog here

Next steps will include advancing the target through small molecule design, hit generation and validation using Recursion's AI-native chemistry platform. More broadly, the neuronal and microglial maps of biology remain reusable assets capable of being utilized with biological, genetics, and computational expertise to generate and experimentally validate additional therapeutic hypotheses. To date, Recursion has achieved $216 million in upfront and milestones payments from the Roche and Genentech collaboration. The collaboration includes up to 40 potential small molecule discovery programs, each carrying the potential for more than $300 million in development, commercialization, and net sales milestones as well as tiered royalties up to high single digits per small molecule program for Recursion.

Advancing joint portfolio with Sanofi across I&I and oncology

Recursion, in collaboration with Sanofi, made significant progress toward development candidate milestones over the past 12 months. Recursion and Sanofi are advancing a joint portfolio of differentiated molecules for challenging targets in I&I and oncology.

To date, Recursion has achieved $134 million in upfront and milestone payments from the Sanofi collaboration and has the potential for $343 million in milestone payments per program plus tiered double digit royalties.

Potential upcoming milestones across partnered discovery:

   -- Potential for differentiated AI-enabled oral molecules to reach 
      development candidate and late-stage discovery milestones with Sanofi 
      over the next 6-12 months 
 
   -- Translating AI-driven insights from maps of biology into new potentially 
      novel targets from reusable high-dimensional data/maps 
 
   -- Using Recursion's Chemistry Platform to design a potential first-in-class 
      molecule for the collaboration's neuroscience target announced today with 
      Genentech 
 
   -- Continuing to combine our phenomics dataset with Genentech's proprietary 
      transcriptomics data to build multi-modal maps designed to explore 
      potential novel targets and pathways by systematically linking gene 
      perturbations to cellular phenotypes 

Internal Pipeline Updates

Continued Momentum for REC-4881 (MEK1/2): REC-4881, Recursion's MEK1/2 inhibitor, is a potential first-in-class drug designed to address both known drivers of FAP polyp growth: the Wnt/<BETA>-catenin initiation pathway and the MAPK evolution pathway. This dual mechanism differentiates REC-4881 from other investigational FAP therapies, which to date have targeted only a single pathway.

REC-4881 is being developed for FAP, an orphan disease affecting an estimated >50,000 diagnosed patients across the US and EU5, representing a >$10 billion total addressable market opportunity. FAP is a serious, lifelong chronic disease with no approved medicines today. REC-4881 has received both Orphan Drug Designation and Fast Track Designation from the US FDA. REC-4881 has demonstrated meaningful activity across the GI tract, including the Upper GI, an area of particularly high unmet need.

Key updates:

   -- Discussions with FDA were initiated in 1H26 and an update to define the 
      registrational path is expected in 2H26 
 
   -- TUPELO now enrolling patients ages 18 and older, as well as a cohort with 
      an alternative dosing schedule 
 
   -- Additional Phase 2 safety and efficacy data from the TUPELO clinical 
      trial contextualized with real world data will be presented at the 
      Collaborative Group of the Americas on Inherited Gastrointestinal Cancer 
      (CGA-IGC) Annual Meeting in November. CGA-IGC is a leading annual meeting 
      dedicated specifically to hereditary GI cancer syndromes including FAP. 
 
          -- Presentation title: Updated safety and efficacy data of REC-4881 
             monotherapy in familial adenomatous polyposis: Phase 1b/2 trial 
             results contextualized with real-world registry data 
 
          -- Session name: Presidential Plenary I 
 
          -- Session date and time: Monday November 2, 2026; 13:30 - 15:00 MST 

Phase 1/2 Trial Initiation for REC-7735 expected in 2H26:

   -- REC-7735, Recursion's AI-designed PI3K<ALPHA> H1047R inhibitor, was built 
      to improve therapeutic index for a validated oncology target 
 
   -- REC-7735 was precision designed to show >100-fold selectivity for the 
      H1047R mutant over wild type in order to drive high, sustained target 
      inhibition while avoiding hyperinsulinemia-driven reactivation 
 
   -- The differentiated development candidate was delivered in 10 months and 
      242 compounds from first novel hit through Recursion's AI-native design 
      platform, demonstrating the Company's ability to rapidly translate 
      platform insights into optimized clinical candidates 
 
   -- With the IND cleared, the Phase 1/2 ZINNIA clinical study for patients 
      with select PIK3CA H1047R-mutant solid tumors will be initiated in the 
      second half of 2026 

For the rest of the portfolio, programs continue to progress as planned.

Additional expected upcoming milestones across Recursion's internal pipeline:

   -- REC-1245 (RBM39): Additional Phase 1 dose escalation data expected in 
      2H26 
 
   -- REC-617 (CDK7): Early Phase 1 safety and PK combination data expected in 
      1H27 
 
   -- REC-3565 (MALT1): Early Phase 1 safety and PK monotherapy data expected 
      in 1H27 
 
   -- REC-4539 (LSD1): Early Phase 1 safety and PK monotherapy data expected in 
      2H27