Recursion Extends Cash Runway Into 2029 After Offering

The Tip Desk · November 3, 2026 · 3 min read

Pro forma cash was about $748.7 million after the October 16, 2026 underwritten offering, and 2026 cash operating expense guidance was reiterated at less than $375 million.

Recursion Pharmaceuticals (RXRX) reported third-quarter 2026 results with a narrower net loss, a Sanofi development-candidate option that lifted collaboration revenue, and an October equity raise that the company said extends its cash runway into 2029.

Cash, cash equivalents and restricted cash were $561.5 million as of September 30, 2026. Including about $187.2 million of net proceeds from the underwritten offering that closed on October 16, 2026, pro forma cash was about $748.7 million. Based on current operating plans with no additional financing, the company expects that runway to extend into 2029. It reiterated 2026 cash operating expense guidance of less than $375 million and gave 2027 guidance of less than $360 million.

Total revenue was $18.6 million for the third quarter of 2026, compared with $5.2 million a year earlier. The company said the increase was driven primarily by a $10.0 million Sanofi milestone for an immunology small-molecule program. Operating revenue was $18.1 million and grant revenue $0.5 million in the three months ended September 30, 2026.

Sanofi optioned the first development candidate from the two companies’ multi-program research collaboration. The candidate, described as a potential first-in-class dual-targeting oral small molecule in immunology, was added to Sanofi’s development pipeline and is expected to enter Phase 1 clinical trials in 2027, with Sanofi funding and leading further development. The option brought total upfront and milestone payments from Sanofi to $144 million. Recursion is eligible for more than $300 million in additional milestones under the program, with double-digit royalties on net product sales if approved. The collaboration has achieved six progress-based milestones across five programs.

Net loss was $119.0 million in the third quarter of 2026, versus a net loss of $162.3 million a year earlier, or $0.22 a share versus $0.36 a share. Loss from operations was $123.2 million. Research and development expenses were $99.1 million, down from $121.1 million, primarily because $22.8 million of in-process research and development costs related to REC-102 recognized in the year-ago quarter did not recur. General and administrative expenses were $32.6 million, compared with $41.6 million, which the company attributed to lower infrastructure technology and professional-service costs. Net cash used in operating activities was $77.4 million for the three months ended September 30, 2026, compared with $117.4 million a year earlier.

The company said it plans to continue focusing resources on REC-4881, REC-1245, REC-4539, REC-7735 and REC-102, and intends to pursue partnership opportunities for REC-617 and REC-3565. In the third quarter, Genentech exercised the first Validated Target Option under the neuroscience collaboration, advancing a previously unexplored target into early discovery. Upfront and milestone payments from the Roche and Genentech collaboration were $216 million to date.

Clinical updates accompanied the financials. In an expanded adult FAP population, Phase 2 TUPELO data for REC-4881 showed that after 12 weeks of 4 mg once-daily dosing, 87% of patients (13 of 15) had a reduction in total polyp burden, with a 47% median reduction. Twelve weeks after stopping treatment, 85% of evaluable patients remained below baseline. Median polyp-burden reductions were 55% in the upper GI and 50% in the lower GI. Six of eight patients with polyps larger than 5 mm at baseline had fewer of those polyps after 12 weeks. The company said it anticipates initiating a registrational trial in the second half of 2027, pending ongoing FDA discussions.

Phase 1 DAHLIA data for REC-1245, with a cutoff of August 21, 2026, showed two confirmed and one unconfirmed partial responses and a 91.7% disease control rate at doses of 45 mg or higher. Recursion selected 45 mg once daily for exploratory expansion cohorts, including endometrial cancer. Preliminary dose-expansion data in endometrial cancer are expected in the second half of 2027.

The board appointed Fred Hassan as chair, effective October 31, 2026.