Recursion, a pioneering clinical-stage TechBio company renowned for its AI-driven drug discovery, has announced a significant strategic move: the full acquisition of REV102, a potential first-in-class oral ENPP1 inhibitor aimed at treating Hypophosphatasia (HPP), a severe and rare genetic disorder that weakens bones and teeth. This acquisition, made from its former joint venture partner Rallybio, transfers complete ownership of the REV102 program, including an associated backup molecule, to Recursion. The deal involves an upfront equity payment of $7.5 million to Rallybio, with potential for an additional $12.5 million in contingent equity upon initiation of further preclinical studies and a $5 million milestone payment when Phase 1 clinical trials begin, along with low single-digit royalties on future net sales. This move is crucial because HPP currently affects over 7,800 diagnosed patients across the U.S. and EU5, many of whom have limited access to existing injectable enzyme replacement therapies (ERTs).

REV102 is designed to target ectonucleotide pyrophosphatase/phosphodiesterase 1 (ENPP1), an enzyme implicated in HPP pathogenesis, aiming to restore the vital balance of inorganic pyrophosphate (PPi) necessary for proper bone mineralization, thus addressing the root cause of the disease. By offering a potentially more convenient, accessible, and non-immunogenic oral small molecule, REV102 could significantly improve patient quality of life and potentially reduce the substantial long-term costs associated with HPP management. The development of REV102 has been largely driven by Recursion's integrated AI/experimental platform, the Recursion OS, which was used to precisely design and optimize the candidate for potency, selectivity, and pharmacokinetic/pharmacodynamic properties suitable for chronic oral dosing. With promising early preclinical data showing a favorable safety profile and validated target engagement in animal models, REV102 is currently undergoing IND-enabling studies, with the initiation of Phase 1 clinical trials anticipated in the second half of 2026. This full acquisition underscores Recursion's commitment to leveraging the power of AI and computational biology to accelerate the delivery of transformative therapies for diseases with high unmet medical needs.