aibioRecursion raises $200 million at $3.25 a share as Sanofi options first candidate
Tickers RXRX
The company says cash now lasts into 2029. Sanofi's option on an inflammatory disease molecule triggered a $10 million milestone.
Key facts
- Company
- Recursion Pharmaceuticals, Inc. (NASDAQ: RXRX)
- News type
- Financings
- Primary source
- Recursion Pharmaceuticals (SEC 8-K)
Recursion Pharmaceuticals priced an underwritten offering of 61.54 million Class A shares at $3.25 each on Oct. 15, 2026, for gross proceeds of about $200 million. Leerink Partners, Goldman Sachs, Morgan Stanley and Evercore ran the books, and Needham was lead manager. The deal was set to close on or about Oct. 16.
The company said the cash, together with what it already had, should fund operations into 2029. It reported preliminary, unaudited cash, cash equivalents and restricted cash of about $561 million at Sept. 30, 2026.
The details
Recursion named Adage, ARK, Driehaus, Invus, Janus Henderson Investors and Longaeva among the buyers, per its business update. The offering ran alongside updated REC-4881 data in familial adenomatous polyposis, early REC-1245 data in solid tumors and a partner milestone from Sanofi.
Sanofi optioned the first development candidate from the companies' collaboration, an oral small molecule for inflammatory disease. Sanofi will fund and lead development, with phase 1 expected in 2027. The option triggered a $10 million milestone, which brings upfront and milestone payments from Sanofi to $144 million to date. Recursion is eligible for more than $300 million in further milestones on the program plus low double-digit royalties, the company said.
The final terms are in the prospectus supplement filed with the SEC.
Context
The raise reverses a runway that had been getting shorter. Cash was $753.9 million at the end of 2025 and $556.8 million at June 30, 2026, with runway guided into early 2028. Recursion lost $131.0 million in the second quarter and cut its 2026 cash operating expense guidance to under $375 million.
Revenue is small and lumpy. Second-quarter revenue was $7.7 million, down from $19.2 million a year earlier, and first-quarter revenue of $6.5 million fell because fewer Roche project phases were completed. Partner payments are the main non-dilutive source of cash.
Najat Khan, CEO since January, said in the update, "Importantly, these are independent proof points emerging from the same integrated engine," per the release.
What it means for investors
The raise removes a near-term financing question. Into 2029 gives Recursion time to start a registrational REC-4881 trial, which it plans for the second half of 2027, and to see REC-1245 expansion data.
The cost is dilution. Selling 61.54 million shares at $3.25 adds a large block to the share count. The Sanofi option helps the case that partners will pay for Recursion's chemistry, but $10 million is small next to a quarterly loss of $131 million. The company still depends on partner milestones and equity markets until a product reaches market.
What to watch
The Sept. 30 cash figure is preliminary and unaudited until the quarter-end close. Recursion presents more REC-4881 data at CGA-IGC on Nov. 2, 2026, and Sanofi expects the optioned candidate to enter phase 1 in 2027.