Recursion, a biotechnology company from Utah, announced a merger with Exscientia, based in Oxford. The deal, valued at $688 million, will combine their expertise to speed up drug development. This merger aims to leverage both companies’ strengths and create a more efficient drug discovery process. The merger will also help them maintain a presence in the UK and expand their research capabilities.
Previously, both companies had significant individual achievements in the biotech field. Recursion’s innovative Recursion Operating System (OS) has been pivotal in decoding biological data, aiding drug discovery. On the other hand, Exscientia has made strides with its AI-driven drug design platform, which was the first to push AI-designed drugs into clinical trials. Despite their separate successes, the merger promises to bring about a more robust and integrated approach to drug development.
Recursion’s acquisition of Exscientia will be conducted through an all-stock deal. The merger aims to combine Recursion’s biological research capabilities with Exscientia’s precision chemistry tools. By integrating their technologies, the companies hope to create a more comprehensive platform for drug discovery and development. This merger will help Recursion and Exscientia accelerate the creation of effective medicines and offer solutions to complex health issues.
Leadership and Future Plans
Chris Gibson, PhD, co-founder and CEO of Recursion, will lead the newly formed entity. He expressed optimism about the collaboration, emphasizing the complementary nature of the merger. David Hallett, PhD, Interim CEO of Exscientia, will assume the role of Chief Scientific Officer. The combined company plans to leverage its enhanced capabilities to conduct approximately 10 clinical trials within the next 18 months.
“We believe the proposed combination is deeply complementary and aligned with our missions to industrialise drug discovery to deliver high-quality medicines and lower prices for consumers,” said Gibson.
Broader Impact and Collaborations
The merger is expected to strengthen therapeutic discovery collaborations with major pharmaceutical companies such as Roche-Genentech, Sanofi, Bayer, and Merck. The combined efforts of Recursion and Exscientia could result in significant milestone payments and potential revenue, enhancing their financial stability. The companies anticipate operational synergies to exceed $100 million annually, creating a stronger financial outlook.
The combined entity will also focus on enhancing its Recursion OS platform. The aim is to improve the efficiency of drug discovery, making the process faster and more cost-effective. With nearly $850 million in cash and cash equivalents, the merger positions the new company to invest in further research and development, driving future innovations.
The merger between Recursion and Exscientia represents a significant milestone in the biotech industry. By joining forces, they aim to transform the landscape of drug discovery and development. Their combined expertise and resources will likely lead to breakthroughs in therapeutic treatments. The collaboration is poised to bring innovative solutions to market, benefiting patients and advancing medical science.
