This article is a teaser for the Scottish Mortgage Recursion podcast. Recursion Pharmaceutical’s co-founder Chris Gibson tells Tom Slater why using robots to map biology could be the key to finding new drugs to treat rare diseases.
As with any investment, capital is at risk.
Discovering new medicines involves exploring the frontiers of biology and chemistry. But it’s also a ‘big numbers’ problem.
First, there is the biology problem: humans are complex beings. There are 20,000 plus genes inside each of us, encoding hundreds of thousands of proteins inside trillions of cells.
Then there is the chemistry problem: there are more treatments than could ever be tested. Researchers have estimated that there are 1060 molecules with potential drug-like traits. For context, that’s more than 5,000 times as many atoms as our solar system contains.
In recent decades, the development of new medicines has effectively relied on researchers stumbling upon promising treatments and recognising their worth.
Acknowledging, “we are lucky if we understand 2-3 per cent of biology”, Recursion Pharmaceutical’s co-founder and chief executive Chris Gibson believes the scale of the challenge warrants a different approach.
“What we’re trying to do is leverage technology – things such as robotics, machine learning and AI [artificial intelligence] – to take a broader view and start to build maps of biology and chemistry that allow us to home in on those places where there might be a potential treatment, much more quickly and efficiently,” he explains.
Using artificial intelligence, Recursion has already mapped out more than three trillion searchable gene and compound relationships. These maps should help us to better understand biology and chemistry and how they interact, which should ultimately make it easier for scientists to navigate their way to new drugs more efficiently.
Treatments are initially developed ‘in silico’, meaning within computer software. That involves simulating how many thousands of potential drug candidates would interact with millions of disease models to identify compounds with interesting reactions.
“I tell people that we do my entire PhD’s worth of experiments every 15 minutes at Recursion, up to 2.2 million experiments a week.”
Only then do humans conduct tests in real-world laboratories to confirm or disprove the results.
“Sometimes our predictions are wrong,” acknowledges Gibson.
“But what we then done is generated new data… that can be used to retrain the model to make better predictions in that area of biology or chemistry in the future. So, it becomes essentially a learning system.”
The process turns drug discovery on its head. Commonly, companies form a hypothesis based on existing medical literature about how to treat a disease and then hunt for a substance to match, the chemistry part of the equation. Even those employing AI typically concentrate their efforts here.
By contrast, Recursion focuses on what Gibson believes is the harder question of biology: as in studying what changes are needed within cells to treat a disease. And going back to the premise that this is a big numbers problem, it is Recursion’s ability to interrogate big data sets using machine learning that means it can test a multitude of potential drugs before forming a hypothesis.
The benefit of this approach is that it should yield speed and efficiency savings. That means the company can go after:
If all goes well, Recursion’s methods should lead it to new types of game-changing drugs rather than incremental improvements to existing compounds, which typify the industry.
The company has come a long way in a short time since its 2013 start.
“One of the great opportunities and challenges we had in founding Recursion was that the founding team was a physician, a computational scientist and myself, a bioengineer," Gibson recalls. “And only one of us had ever worked on drug discovery as a main focus.”
They started with a “clean sheet”, he says, asking “how would you discover a medicine in a better way if you were not constrained by how it’s been done in the past”.
In answering that question, the firm has created a “new language” to help its staff share knowledge from different disciplines and technologies.
“When we bring people in, it often takes them six to 12 months to really get onboarded because there is this complexity of a new language and a new way of thinking,” Gibson explains.
Recursion’s CEO and co-founder Chris Gibson tells Tom Slater why he believes robots and artificial intelligence can help find potential drugs faster, cheaper and more effectively than ever before, in this episode of Invest in Progress.
Listen to the podcast here.
Given the time involved, it's critical to hold onto those new recruits, and the firm’s goals and Salt Lake City location, away from traditional biotech hubs, help in this regard.
“Our retention levels are much higher because people feel like they're part of a mission,“ Gibson says. “And they're not walking down the street, being distracted by a dozen offers a year to go join other companies.”
With five drugs in clinical trials – the last stage of testing in humans before a drug comes to market – Recursion has already achieved more than most pharma companies of its size and age.
One of its most advanced programmes is a treatment for cerebral cavernous malformation. The disorder can lead to seizures, difficulty in speaking and problems with balance, among other problems.
It affects nearly five times as many patients in the US and Europe as cystic fibrosis but has received less attention to date.
“Because the biology was poorly understood, there's no companies with drugs in clinical development that we're aware of,” explains Gibson.
But the firm’s true value to its investors lies in the long-term promise of its unusual approach and technology platform.
The long-term outcomes should be new and better medicines, an improved understanding of biology and long-term growth for those who supported the company on its way.
Recursion has sometimes been creative with its recruitment methods. As Gibson explains, “data scientists have not been trained in biology; their last class in biology was maybe in high school, so they don’t know that they can contribute.”
For this reason, the company ran a competition in 2019, releasing “the largest dataset of its kind in the world” and asked teams of data scientists “build machine learning algorithms” to help discover new treatments based on the data.
It was more than just a recruitment exercise. It raised the profile of data scientists and the types of problems they can solve. “Maybe they don’t join Recursion,” says Gibson philosophically, “but they’re applying their efforts towards a problem as impactful as discovering and developing medicines.”
The event was so successful that the company intends to repeat the exercise and release a bigger dataset soon.
This communication was produced and approved at the time stated and may not have been updated subsequently. It represents views held at the time of production and may not reflect current thinking.
This content does not constitute, and is not subject to the protections afforded to, independent research. Baillie Gifford and its staff may have dealt in the investments concerned. The views expressed are not statements of fact and should not be considered as advice or a recommendation to buy, sell or hold a particular investment.
Baillie Gifford & Co and Baillie Gifford & Co Limited are authorised and regulated by the Financial Conduct Authority (FCA). The investment trusts managed by Baillie Gifford & Co Limited are listed on the London Stock Exchange and are not authorised or regulated by the FCA.
A Key Information Document is available by visiting our Documents page.
Any images used in this content are for illustrative purposes only.
Portfolio Director
Claire Shaw is a portfolio director and plays a prominent role in servicing Scottish Mortgage’s UK shareholder base. Before joining in 2019, she spent over a decade as a fund manager with a focus on managing European equity portfolios for a global client base. With a background in analysing companies and communicating investment ideas, Claire is also responsible for creating engaging content that makes the Scottish Mortgage portfolio accessible to all its shareholders. Beyond that, she works closely with the managers, meeting with portfolio companies and conducting in-depth portfolio discussions with shareholders.
This content was produced and approved at the time stated and may not have been updated subsequently. It represents views held at the time of production and may not reflect current thinking. Read our Legal and regulatory information for further details.
A Key Information Document is available by visiting our Documents page. Any images used in this content are for illustrative purposes only.
This content does not constitute, and is not subject to the protections afforded to, independent research. Baillie Gifford and its staff may have dealt in the investments concerned. The views expressed are not statements of fact and should not be considered as advice or a recommendation to buy, sell or hold a particular investment.
Baillie Gifford & Co and Baillie Gifford & Co Limited are authorised and regulated by the Financial Conduct Authority (FCA). The investment trusts managed by Baillie Gifford & Co Limited are listed on the London Stock Exchange and are not authorised or regulated by the FCA.
Baillie Gifford Asia (Hong Kong) Limited 柏基亞洲(香港)有限公司 (BGA) holds a Type 1 licence from the Securities and Futures Commission of Hong Kong to market and distribute Baillie Gifford’s range of collective investment schemes and closed-ended funds such as investment trusts to professional investors in Hong Kong.
Baillie Gifford Asia (Singapore) Private Limited (BGAS) is regulated by the Monetary Authority of Singapore as a holder of a capital markets services licence to conduct fund management activities for institutional investors and accredited investors in Singapore. BGA and BGAS are wholly owned subsidiaries of Baillie Gifford Overseas Limited, which is wholly owned by Baillie Gifford & Co.
Europe
Scottish Mortgage Investment Trust PLC (the “Company”) is an alternative investment fund for the purpose of Directive 2011/61/EU (the “AIFM Directive”). Baillie Gifford & Co Limited is the alternative investment fund manager (“AIFM”) of the Company and has been authorised for marketing to Professional Investors in this jurisdiction.
This content is made available by Baillie Gifford Investment Management (Europe) Limited (“BGE”), which has been engaged by the AIFM to carry out promotional activities relating to the Company. BGE is authorised by the Central Bank of Ireland as an AIFM under the AIFM Regulations and as a UCITS management company under the UCITS Regulation. BGE also has regulatory permissions to perform promotional, advisory and Individual Portfolio Management activities. BGE has passported its authorisations under the mechanisms set out in the AIFM Directive.
Belgium
The Company has not been and will not be registered with the Belgian Financial Services and Markets Authority (Autoriteit voor Financiële Diensten en Markten / Autorité des services et marchés financiers) (the FSMA) as a public foreign alternative collective investment scheme under Article 259 of the Belgian Law of 19 April 2014 on alternative collective investment institutions and their managers (the Law of 19 April 2014). The shares in the Company will be marketed in Belgium to professional investors within the meaning the Law of 19 April 2014 only. Any offering material relating to the offering has not been, and will not be, approved by the FSMA pursuant to the Belgian laws and regulations applicable to the public offering of securities. Accordingly, this offering as well as any documents and materials relating to the offering may not be advertised, offered or distributed in any other way, directly or indirectly, to any other person located and/or resident in Belgium other than to professional investors within the meaning the Law of 19 April 2014 and in circumstances which do not constitute an offer to the public pursuant to the Law of 19 April 2014. The shares offered by the Company shall not, whether directly or indirectly, be marketed, offered, sold, transferred or delivered in Belgium to any individual or legal entity other than to professional investors within the meaning the Law of 19 April 2014 or than to investors having a minimum investment of at least EUR 250,000 per investor.
Germany
The Trust has not offered or placed and will not offer or place or sell, directly or indirectly, units/shares to retail investors or semi-professional investors in Germany, i.e. investors which do not qualify as professional investors as defined in sec. 1 (19) no. 32 German Investment Code (Kapitalanlagegesetzbuch – KAGB) and has not distributed and will not distribute or cause to be distributed to such retail or semi-professional investor in Germany, this document or any other offering material relating to the units/shares of the Trust and that such offers, placements, sales and distributions have been and will be made in Germany only to professional investors within the meaning of sec. 1 (19) no. 32 German Investment Code (Kapitalanlagegesetzbuch – KAGB).
Luxembourg
Units/shares/interests of the Trust may only be offered or sold in the Grand Duchy of Luxembourg (Luxembourg) to professional investors within the meaning of Luxembourg act by the act of 12 July 2013 on alternative investment fund managers (the AIFM Act). This document does not constitute an offer, an invitation or a solicitation for any investment or subscription for the units/shares/interests of the Trust by retail investors in Luxembourg. Any person who is in possession of this document is hereby notified that no action has or will be taken that would allow a direct or indirect offering or placement of the units/shares/interests of the Trust to retail investors in Luxembourg.
Switzerland
The Trust has not been approved by the Swiss Financial Market Supervisory Authority (“FINMA”) for offering to non-qualified investors pursuant to Art. 120 para. 1 of the Swiss Federal Act on Collective Investment Schemes of 23 June 2006, as amended (“CISA”). Accordingly, the interests in the Trust may only be offered or advertised, and this document may only be made available, in Switzerland to qualified investors within the meaning of CISA. Investors in the Trust do not benefit from the specific investor protection provided by CISA and the supervision by the FINMA in connection with the approval for offering.
Singapore
This content has not been registered as a prospectus with the Monetary Authority of Singapore. Accordingly, this content and any other content or material in connection with the offer or sale, or invitation for subscription or purchase, of the Trust may not be circulated or distributed, nor may be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to persons in Singapore other than (i) to an institutional investor (as defined in Section 4A of the Securities and Futures Act 2001, as modified or amended from time to time (SFA)) pursuant to Section 274 of the SFA, (ii) to a relevant person (as defined in Section 275(2) of the SFA) pursuant to Section 275(1), or any person pursuant to Section 275(1A), and in accordance with the conditions specified in Section 275 of the SFA, or (iii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA.
Where the Trust is subscribed or purchased under Section 275 by a relevant person which is:
(a) a corporation (which is not an accredited investor (as defined in Section 4A of the SFA)) the sole business of which is to hold investments and the entire share capital of which is owned by one or more individuals, each of whom is an accredited investor; or
(b) a trust (where the trustee is not an accredited investor) whose sole purpose is to hold investments and each beneficiary of the trust is an individual who is an accredited investor, securities or securities-based derivatives contracts (each term as defined in Section 2(1) of the SFA) of that corporation or the beneficiaries’ rights and interest (howsoever described) in that trust shall not be transferred within six months after that corporation or that trust has acquired the securities pursuant to an offer made under Section 275 except:
(1) to an institutional investor or to a relevant person or to any person arising from an offer referred to in Section 275(1A) or Section 276(4)(c)(ii) of the SFA,
(2) where no consideration is or will be given for the transfer;
(3) where the transfer is by operation of law; or
(4) pursuant to Section 276(7) of the SFA or Regulation 37A of the Securities and Futures (Offers of Investments) (Securities and Securities-based Derivatives Contracts) Regulations 2018.