Sanofi options Recursion drug candidate, triggering $10M payment

Sanofi has exercised an option on a development candidate from its ongoing research collaboration with Recursion Pharmaceuticals (NASDAQ: RXRX), according to a press release from Recursion dated Oct. 15, 2026.

The option exercise triggered a $10 million milestone payment to Recursion, bringing total upfront and milestone payments received under the collaboration to $144 million. Recursion said it remains eligible for more than $300 million in additional milestone payments under the program, along with low double-digit royalties on net product sales if the candidate is approved and commercialized.

The $10 million payment will be recognized as revenue in Recursion's third quarter of 2026. Recursion said its operational obligations related to the candidate have concluded, with any future payments representing profit to the company.

The candidate is described as a potential first-in-class oral small molecule designed to target a dual target implicated in inflammatory disease. Sanofi has added the candidate to its development pipeline and expects to initiate phase 1 clinical trials in 2027. Sanofi will fund and lead further development and commercialization.

The collaboration, which spans immunology and oncology, has now achieved six progress-based milestones across five programs since it was established. Recursion said other programs within the joint portfolio have the potential to reach development candidate and additional progress-based milestones over the next 12 months.

"By combining Sanofi's drug discovery and clinical and translational knowledge in immunology with Recursion's AI-driven platform, we were able to move with speed and precision in a space where that balance is notoriously hard to achieve," said Alyssa Johnsen, Therapeutic Area Head, Development, Immunology & Inflammation at Sanofi.

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