Recursion prices $200M offering, reports Sanofi milestone and TUPELO, DAHLIA data

Recursion Pharmaceuticals entered an underwriting agreement on October 15, 2026 for 61,540,000 shares of Class A Common Stock at $3.25 per share, with gross proceeds expected around $200 million, in an offering set to close October 16, 2026. The deal, arranged with Leerink Partners, Goldman Sachs, Morgan Stanley and Evercore as representatives of the underwriters, covered 61,540,000 shares at $3.25 per share, with expected gross proceeds of approximately $200 million before fees, and a closing expected October 16, 2026.¹

On the collaboration front, Sanofi optioned the first development candidate from its multi-program research collaboration with Recursion, a potential first-in-class dual-targeting oral small molecule now expected to begin Phase 1 trials in 2027.¹ The option triggered a $10 million payment to Recursion, lifting cumulative upfront and milestone payments from Sanofi to $144 million, with Recursion still eligible for more than $300 million in further milestones plus double-digit royalties on any approved sales.¹ Across the collaboration, six progress-based milestones have now been reached across five programs.¹

In REC-4881's TUPELO study for familial adenomatous polyposis, with a September 10, 2026 cutoff, 87% of 16 efficacy-evaluable patients showed reductions in total polyp burden, with a 47% median reduction at week 13.¹ Recursion said it has had conversations with the FDA about a registrational trial and anticipates initiating one in 2027, pending the outcome of those discussions.¹

For REC-1245 in DAHLIA, with an August 21, 2026 cutoff, 11 of 12 efficacy-evaluable patients who started at 45 mg or 65 mg, or 91.7%, achieved disease control at eight weeks.¹ The company selected 45 mg once daily for monotherapy expansion cohorts, including in endometrial cancer, with preliminary data expected in the second half of 2027.¹

On cash, Recursion estimated cash, cash equivalents and restricted cash of approximately $561 million as of September 30, 2026.¹ Following the offering, the company said existing cash should fund operations into 2029.¹