The $688 million merger between Recursion Pharmaceuticals and Exscientia is a significant move in the AI-driven drug discovery sector, designed to create a global powerhouse in biotechnology. Both companies specialize in using artificial intelligence to streamline drug discovery, from target identification to clinical development, with a shared vision of accelerating the creation of innovative treatments.

Recursion, based in the U.S., focuses on using AI for rare diseases and oncology, while UK-based Exscientia has expertise in AI-driven drug design, particularly in immunology and cancer therapies. Together, they aim to integrate their capabilities: Recursion’s expertise in biological data exploration will complement Exscientia’s AI-driven precision chemistry. This merger will help the combined entity leverage its AI platforms for faster, more efficient drug development.

The merged company will also benefit from substantial financial backing, with $850 million in cash reserves, and expects to unlock operational savings of $100 million annually. The integration of their pipelines will give rise to 10 clinical trial readouts over the next 18 months, potentially positioning them as leaders in the AI-based pharmaceutical industry.