By Colin Kellaher
Recursion Pharmaceuticals Inc. on Tuesday said it formed a drug-discovery collaboration with Roche Holding AG and its Genentech unit that is potentially worth several billion dollars to the clinical-stage biotechnology company.
Recursion said it will work with the R&D units of both Roche and Genentech to use its Recursion Operating System to more rapidly identify novel targets and advance medicines in key areas of neuroscience, as well as in an oncology indication.
The Salt Lake City, Utah, company said it will receive an upfront payment of $150 million, adding that Roche and Genentech may initiate up to 40 programs, each of which could yield more than $300 million in development, commercialization and sales milestones, along with royalties on sales.
Recursion reported cash, cash equivalents and investments of $578.9 million as of Sept. 30.
Recursion said the companies will use insights generated from the collaboration's maps of human cellular biology to find and develop medicines against novel targets in neuroscience and the oncology indication for up to a decade or longer, adding that Recursion's other programs already underway in oncology or neuroscience aren't part of the collaboration.
Shares of Recursion, which closed Monday at $18.48, were recently up 5.5% in premarket trading.
Write to Colin Kellaher at email@example.com
(END) Dow Jones Newswires