Recursion Pharmaceuticals, Inc. (Nasdaq: RXRX) announced on October 15, 2026, that it entered into an underwriting agreement to sell 61,540,000 shares of its Class A common stock at a price of $3.25 per share. The gross proceeds to the company are expected to be approximately $200 million, before deducting underwriting discounts and commissions and other estimated offering expenses. The offering is scheduled to close on October 16, 2026, subject to customary closing conditions. The transaction is being made pursuant to the company's effective registration statement on Form S-3ASR.
In addition to the equity offering, Recursion disclosed preliminary cash, cash equivalents, and restricted cash balances as of September 30, 2026. The company estimated this balance to be approximately $561 million. Following this offering, Recursion expects its existing cash position to fund operating expenses and capital expenditures into 2029. The preliminary balance includes approximately $86 million in net proceeds from a previous at-the-market program with TD Securities (USA) LLC.
Separately, Recursion announced a partnership update regarding its collaboration with Sanofi. Sanofi has optioned the first development candidate from their multi-program research collaboration. This candidate is a potential first-in-class oral small molecule designed to target a dual mechanism implicated in inflammatory disease. The option triggered a $10 million milestone payment to Recursion, bringing total upfront and milestone payments under the collaboration to $144 million. Recursion remains eligible for more than $300 million in additional milestones, with low double-digit royalties on net product sales if the candidate is commercialized. The candidate is expected to enter Phase 1 clinical trials in 2027, with Sanofi funding and leading the development.
Recursion also reported updated topline data from its Phase 1b/2 TUPELO study of REC-4881, an investigational MEK1/2 inhibitor for familial adenomatous polyposis (FAP). Of the 16 efficacy-evaluable patients, 87% achieved reductions in total polyp burden, with a 47% median reduction at week 13. The safety profile remained favorable, with 80.8% of 26 safety-evaluable patients experiencing treatment-related adverse events of Grade 2 or lower. No Grade 4 or 5 adverse events were reported.
