Recursion Pharmaceuticals, Inc. (Recursion) and Exscientia plc (Exscientia) have announced a business combination agreement, which was discussed in detail at the Morgan Stanley Healthcare Conference on September 4, 2024. Michael Secora, CFO of Recursion, and David Hallett, interim CEO of Exscientia, outlined the strategic rationale behind the merger, emphasizing the complementary nature of their technologies and pipelines. The combination aims to create an end-to-end drug discovery and development platform, leveraging AI and proprietary data to improve the probability of success in drug development. The merged entity expects to realize $100 million in annual synergies, mainly from operational efficiencies and internalizing certain functions currently outsourced to CROs. The transaction is anticipated to close by early 2025, subject to shareholder approval and regulatory clearances. Both companies have a history of successful partnerships with major pharmaceutical firms, which they expect to continue post-merger. The discussion also highlighted recent clinical successes and the potential for the combined company to deliver novel and best-in-class drug candidates more efficiently.

Recursion Pharmaceuticals, Inc. (Recursion) and Exscientia plc (Exscientia) have announced a business combination agreement, which was discussed in detail at the Morgan Stanley Healthcare Conference on September 4, 2024. Michael Secora, CFO of Recursion, and David Hallett, interim CEO of Exscientia, outlined the strategic rationale behind the merger, emphasizing the complementary nature of their technologies and pipelines. The combination aims to create an end-to-end drug discovery and development platform, leveraging AI and proprietary data to improve the probability of success in drug development. The merged entity expects to realize $100 million in annual synergies, mainly from operational efficiencies and internalizing certain functions currently outsourced to CROs. The transaction is anticipated to close by early 2025, subject to shareholder approval and regulatory clearances. Both companies have a history of successful partnerships with major pharmaceutical firms, which they expect to continue post-merger. The discussion also highlighted recent clinical successes and the potential for the combined company to deliver novel and best-in-class drug candidates more efficiently.