Monitor the pricing of the offering and the market reaction to the dilution. The 45-day lock-up period for insiders and the potential for further dilution from the ATM program. The clinical data for REC-4881 and REC-1245 are positive but early-stage and the offering is the main event. The cash runway extension into 2029 is a positive but the offering is the main event.
Price Chart
Executive Summary
Recursion Pharmaceuticals is filing a preliminary prospectus supplement for a $200 million underwritten public offering of Class A common stock. The filing also discloses positive clinical data for REC-4881 in FAP and initial data for REC-1245, and a $10 million milestone payment from Sanofi for optioning a development candidate. The offering will dilute existing shareholders and extends cash runway into 2029.
Key Facts
- Offering size: $200,000,000 of Class A Common Stock
- Offering price: $3.74 per share (last reported sale price on October 14, 2026 was $3.74)
- Cash, cash equivalents, and restricted cash as of September 30, 2026: approximately $561 million
- Sanofi optioned first development candidate triggered a $10 million milestone payment
- Total upfront and milestone payments under collaboration to date: $144 million
- REC-4881 Phase 1b2 TUPELO study: 87% of patients achieved reductions in total polyp burden with 47% median reduction at week 13
- REC-1245 Phase 1 dose escalation: 3 patients achieved partial response (2 confirmed, 1 unconfirmed)
- Shares outstanding as of June 30, 2026: 533,191,318 shares
- Net tangible book value as of June 30, 2026: $430.6 million
- Dilution per share to new investors: immediate and substantial dilution
- Underwriters: Leerink Partners, Goldman Sachs Co. LLC, Morgan Stanley Co. LLC, Evercore Group L.L.C., Needham Company, LLC
- Lock-up period: 45 days after date of prospectus supplement
Financial Impact
$200 million offering at $3.74 per share; immediate dilution to existing shareholders; net proceeds will fund clinical programs and extend cash runway into 2029
Risk Factors
- Dilution from the offering and potential further dilution from ATM program
- Clinical trial risks for REC-4881 and REC-1245
- Market volatility and stock price decline
- No dividends and no cash dividends declared
Investment Themes
Documents Analyzed
This report is based on 3 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 424B5 Filing (Primary) | 0001601830-26-000126 |
| Document: 0001601830-26-000126-index.html | 0001601830-26-000126 |
| Document: 0001601830-26-000126.txt | 0001601830-26-000126 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 15, 2026 11d ago | 424B5 | $3.47 $3.58 | ▼ −3.32% | ▼ −3.23% | $3.80 (−9.67%) |
Oct 15, 2026 11d ago | 8-K | $4.16 $3.58 | ▼ −13.94% | ▼ −12.93% | $3.80 (−8.65%) |
Oct 15, 2026 11d ago | Press Release | $4.16 $3.58 | ▼ −13.94% | ▼ −12.93% | $3.80 (−8.65%) |
Oct 15, 2026 11d ago | Press Release | $4.16 $3.58 | ▲ +13.94% | ▲ +12.93% | $3.80 (+8.65%) |
Oct 15, 2026 11d ago | Press Release | $4.16 $3.58 | ▼ −13.94% | ▼ −12.93% | $3.80 (−8.65%) |
Oct 15, 2026 11d ago | 424B5 | $4.16 $3.58 | ▲ +13.94% | ▲ +12.93% | $3.80 (+8.65%) |
Oct 6, 2026 20d ago | 144 | $4.63 $3.84 | ▼ −17.17% | ▼ −17.03% | $3.80 (−17.93%) |
Oct 6, 2026 20d ago | 144 | $4.63 $3.84 | ▼ −17.17% | ▼ −17.03% | $3.80 (−17.93%) |
Sep 21, 2026 5w ago | 8-K | $3.97 $3.70 | ▼ −6.80% | ▼ −5.78% | $3.80 (−4.28%) |
Sep 10, 2026 6w ago | Insider Cluster | $3.20 $3.83 | ▲ +19.69% | ▲ +20.03% | $3.80 (+18.75%) |
US Market Status
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