Key points from article :
Recursion and Exscientia, two leading AI-driven drug discovery companies, have merged to form a comprehensive "end-to-end drug discovery platform" that aims to revolutionize the pharmaceutical industry by accelerating drug development and reducing costs. This merger is part of the ongoing consolidation within the AI drug discovery field, creating a significant new player with the potential to make a substantial impact.
Recursion, headquartered in the United States, acquired UK-based Exscientia for $688 million in an all-stock deal. The combined entity will be headquartered in Salt Lake City, Utah, while maintaining a significant presence in the UK. The new company will continue to trade under the name Recursion on NASDAQ and will be well-capitalized, with around $850 million in cash and cash equivalents. The merger is expected to generate annual synergies exceeding $100 million.
The unified company's strength lies in the complementary expertise of both firms. Recursion specializes in scaled biology exploration and translational capabilities, while Exscientia brings advanced precision chemistry design and an automated small molecule synthesis platform to the table.
This combination is expected to enhance Recursion's OS platform, improving the efficiency and scale of drug discovery and development. The company plans to deliver approximately 10 clinical readouts over the next 18 months, with the potential to earn about $200 million in milestone payments within two years.
The long-term revenue potential of the merger is projected to exceed $20 billion before royalties, with a diverse portfolio of clinical and near-clinical programs aiming for annual peak sales exceeding $1 billion.
