Recursion updates Q2 results and AI-driven pipeline

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Recursion Pharmaceuticals ( (RXRX) ) has shared an announcement.

On August 5, 2026, Recursion reported second-quarter 2026 results and business updates, highlighting continued execution across its pipeline and AI-driven drug discovery platform. The company lowered its 2026 cash operating expense guidance to under $375 million, signaling tighter cost control as it scales its technology and clinical programs.

Genentech advanced the first neuroscience target from its collaboration with Recursion into a joint early discovery program, marking a pivotal proof point for Recursion’s AI-native platform in uncovering and validating novel targets in one of medicine’s most challenging areas. The collaboration with Roche and Genentech, built on reusable whole-genome CRISPR knockout maps in iPSC-derived neuronal cells, has generated $216 million in upfront and milestone payments to date and could include up to 40 small molecule programs.

Recursion also reported meaningful progress across its Sanofi alliance, where both companies are advancing differentiated molecules for immunology, inflammation, and oncology and moving toward development candidate milestones. To date, Recursion has received $134 million in upfront and milestone payments from Sanofi, with the potential for substantial additional milestones and double-digit tiered royalties per program.

In its internal pipeline, Recursion highlighted continued momentum for REC-4881, a MEK1/2 inhibitor for familial adenomatous polyposis, a serious orphan GI cancer syndrome with no approved medicines, with Phase 2 data from the TUPELO trial scheduled for presentation in November 2026. The company has initiated FDA discussions in the first half of 2026 to define a registrational path and is expanding trial enrollment, underscoring the program’s commercial potential in a market estimated above $10 billion.

Recursion disclosed that REC-7735, its AI-designed PI3Kα H1047R inhibitor targeting a validated oncology mutation, has an IND cleared and is expected to enter a Phase 1/2 trial for select solid tumors in the second half of 2026. The compound, developed in just 10 months through Recursion’s AI-native design platform, demonstrates the firm’s ability to rapidly generate highly selective clinical candidates and supports a growing oncology portfolio alongside other early Phase 1 programs.

The company further detailed how agentic AI is increasingly embedded across biology, design, and clinical strategy, reducing the time to surface targets, run structural analyses, and coordinate trial operations. These technology-driven efficiencies are presented as a core competitive advantage, compounding Recursion’s ability to mine its proprietary multimodal data and accelerate drug discovery and development in collaboration with partners and within its own pipeline.