Recursion Cuts Staff to Extend Cash Runway

Rare Daily Staff

AI-driven drug developer Recursion Pharmaceuticals said it would reduce its staff by about 20 percent and streamline its operating strategy to extend its cash runway to the fourth quarter of 2027.

The changes, announced in a filing with the U.S. Securities and Exchange Commission, are expected to result in approximately $11 million in charges in connection with the workforce reduction, consisting of severance payments, employee benefits, and related costs.

The cuts follow the company’s decision last month to deprioritize several programs, including developing therapies to treat the rare diseases neurofibromatosis type 2 and cerebral cavernous malformation.

The company now expects its cash burn, excluding partnership inflows or one-time severance costs, to be less than $450 million in 2025 and less than $390 million in 2026.

Recursion said it has the potential to receive more than $100 million in cash inflows from progress-based milestone payments from partners by the end of 2026. The company expects cash, cash equivalents, and restricted cash for the quarter ending June 30, 2025 to be more than $500 million compared to $509 million as of March 31, 2025.