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Management characterizes the current phase as an ‘inflection point’ where the focus shifts from building AI models to translating them into tangible clinical evidence and measurable impact.
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Performance is attributed to an ‘end-to-end’ integration of AI-driven biology, chemistry, and clinical development, which management believes creates a compounding effect on R&D decision-making.
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The company is utilizing a ‘lab-in-the-loop’ strategy to generate high-quality, fit-for-purpose multimodal data, combining proprietary private data with public datasets to ensure unique model insights.
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Strategic positioning emphasizes ‘repeatability’ and ‘scalability’ in drug discovery, aiming to transform the traditionally probabilistic nature of biotech into a more predictable engineering-focused process.
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Operational efficiency is highlighted by the claim of synthesizing 90% fewer compounds than the industry average (300 vs. 2,500) and reaching development candidates twice as fast (17 months vs. 42 months).
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Management attributes a 35% reduction in operating expenses to a sharper portfolio focus, G&A optimization, and increased platform efficiency, rather than simple cost-cutting.
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The company expects a busy 18-24 month period with key catalysts including FDA engagement for the REC-4881 (FAP) registration path in 2026.
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Guidance for 2026 cash operating expenses is set under $390 million, with a cash runway now extended into early 2028 based on disciplined execution and probability-weighted partnership milestones.
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Go/no-go decisions for the PI3K and ENPP1 programs are expected in the second half of 2025 following the completion of IND-enabling studies.
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Future clinical updates include early safety and PK data for RBM39 in late 2026, a similar update for MALT1 expected in the first half of 2027, and an update for LSD1 expected in 2027.
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The partnership strategy assumes continued momentum with Sanofi and Roche Genentech, focusing on translating biological ‘maps’ into novel programs over the next 18 months.
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Management addressed NVIDIA’s divestment, clarifying it was a portfolio shift toward larger data center investments and does not impact their ongoing technical collaboration.
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The company transitioned to an ‘outcomes-based budget’ to ensure every dollar spent is tied to a quantifiable strategic or scientific outcome.
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A 10% beat on previous expense guidance was attributed to the successful integration of corporate systems and the completion of post-acquisition restructuring.
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Management explicitly noted that drug discovery remains inherently probabilistic with a 90% industry failure rate, necessitating their ‘multiple shots on goal’ platform approach.
