Core Insights - Recursion reported significant business updates and financial results for Q4 and fiscal year 2024, highlighting advancements in its clinical pipeline and partnerships [1][3][12] Business Highlights - The company completed the largest TechBio merger in history, enhancing its pipeline and platform capabilities [3] - Recursion's pipeline includes 10 clinical and preclinical programs, focusing on both first-in-class and best-in-class therapies [3][5] - The company advanced three new clinical studies in oncology and rare diseases, demonstrating promising safety and efficacy data for key candidates [6][10] Financial Performance - Total revenue for Q4 2024 was $4.5 million, down from $10.9 million in Q4 2023, while total revenue for the year was $58.8 million, up from $44.6 million in 2023 [12][15] - Research and development expenses increased to $98.3 million for Q4 2024, compared to $69.5 million in Q4 2023, driven by platform expansion [15][17] - The net loss for Q4 2024 was $178.9 million, compared to a net loss of $93.0 million in Q4 2023, reflecting higher operational costs [15][17] Pipeline and Clinical Advancements - REC-617, an oral CDK7 inhibitor, showed promising early Phase 1/2 results, while REC-994 demonstrated robust safety in a Phase 2 study for cerebral cavernous malformations [10][6] - The company initiated new clinical trials for REC-1245, REC-4881, and REC-3964, targeting advanced solid tumors, familial adenomatous polyposis, and recurrent C. difficile infection, respectively [10][6] Partnerships and Collaborations - Recursion has established significant partnerships with Roche, Genentech, and Sanofi, generating substantial cash inflows and advancing multiple programs [6][10] - The collaboration with Roche and Genentech led to the development of a neuro-specific CRISPR knockout map, enhancing target identification in neuroscience [10][6] Technological Advancements - The Recursion OS platform integrates advanced AI and machine learning technologies, enabling efficient drug discovery and development processes [14][10] - The company launched BioHive-2, a powerful supercomputer, to support its computational needs and enhance its drug discovery capabilities [10][14]

Company Overview - Recursion (NASDAQ:RXRX) is a clinical stage TechBio company focused on decoding biology to enhance drug discovery processes [3] - The company operates a platform known as Recursion OS, which generates extensive proprietary biological and chemical datasets, utilizing advanced machine-learning algorithms to identify relationships across biology and chemistry [3] - Recursion conducts millions of wet lab experiments weekly and operates one of the most powerful supercomputers globally, integrating technology with biology and chemistry to innovate in medicine [3] Upcoming Financial Updates - Recursion will provide business updates and report its fourth quarter and full year 2024 financial results on February 28, 2025, before the market opens [1] - An earnings call will be held on the same day at 8:30 am ET, with a live stream available on various platforms including X (formerly Twitter), LinkedIn, and YouTube [2] Company Locations - The company is headquartered in Salt Lake City and is a founding member of BioHive, a collective for the Utah life sciences industry [4] - Recursion has additional offices in Toronto, Montréal, New York, London, Oxford area, and the San Francisco Bay area [4]

Core Insights - The Altitude Lab Fund is launched to support early-stage biotechnology startups in Salt Lake City, aiming to provide capital, lab space, and mentorship amidst federal funding disruptions [1][2][3] Industry Overview - Federal grants, amounting to approximately $4.5 billion annually through SBIR and STTR, have been crucial for biotech innovation, but recent policy changes have left around 1,500 health-related startups in a precarious position [2] - Salt Lake City has emerged as a biotechnology hub, with Altitude Lab's startups raising over 50% of early-stage life science capital in Utah, totaling $154 million from 2020 to 2024 [3] Company Initiatives - The fund will provide pre-seed investments ranging from $100,000 to $250,000, along with 12 months of lab and office space, and access to a competitive accelerator program [8] - Altitude Lab aims to foster a diverse generation of founders, particularly supporting female and underrepresented entrepreneurs who currently receive only 15% of SBIR funding and 3% of venture capital [3][5] Leadership and Management - The fund will be led by Chris Gibson, CEO of Recursion, along with David Bearss and Chandana Haque, focusing on supporting biotech innovation and entrepreneurship [4]

Core Insights - Altitude Lab has successfully incubated startups that have raised a total of $154 million in early-stage funding since its inception in 2020 [1] - The inaugural Gibson Founder Fellowship was awarded to Carmen Kivisild, CEO of Elnora AI, providing up to $150,000 in funding and support for early-career scientists [1][2] - Altitude Lab anticipates a significant increase in Series A funding rounds from its alumni and founder community in 2025, following major value inflection points achieved in 2024 [3] Company Overview - Altitude Lab is an accelerator program located in Salt Lake City's BioHive Hub, focused on early-stage life science and healthcare companies [4] - The initiative aims to foster socially-responsible entrepreneurship, job creation, and economic productivity in Utah [4] - Altitude Lab operates under the Recursion Foundation, a nonprofit organization [4] Startup Performance - Currently, 19 startups are in Altitude Lab's cohort, with 12 alumni, and 90% of participating startups have successfully raised capital [6] - Notable achievements include Peel Therapeutics completing a Phase 1 trial and Rebel Medicine receiving IND approval for Alevatrix [6] - 70% of startups are led by at least one underrepresented founder, highlighting diversity within the program [6]

Core Viewpoint - Recursion Pharmaceuticals (RXRX) is set to report its fourth-quarter 2024 results, with expected revenues of $28.73 billion and a loss per share of 36 cents [1]. Financial Performance - The Zacks Consensus Estimate for Recursion's 2024 loss per share has remained constant at $1.57, while the 2025 loss forecast has slightly narrowed from $1.43 to $1.42 [2]. - RXRX has had a mixed earnings performance over the last four quarters, beating estimates in two quarters and missing in the other two, with an average earnings surprise of 1.26% [5][6]. - In the last reported quarter, RXRX experienced a negative surprise of 3.03% [5]. Earnings Expectations - The current Earnings ESP for RXRX is -0.93%, and it holds a Zacks Rank of 3 (Hold), indicating that the odds of an earnings beat are not favorable [7][8]. Pipeline and Collaborations - Recursion does not have marketed products and relies on collaboration and grant revenues, with partnerships with major pharmaceutical companies like Roche, Bayer, Merck, and Sanofi [9]. - The company is developing its lead candidate, REC-994, for treating cerebral cavernous malformation, with plans to meet the FDA for further development [11]. - Other mid-stage candidates include REC-2282 for neurofibromatosis type II and REC-4881 for familial adenomatous polyposis, among others [12]. Research and Development - Research and development expenses are expected to increase due to investments in the proprietary candidate development platform and ongoing clinical activities [13]. Stock Performance - RXRX's stock has increased by 67.9% over the past three months, outperforming the industry and the S&P 500, which saw a decline of 6.5% [14]. - The company's shares trade at a price/book value ratio of 7.84, significantly higher than the industry average of 1.26 [16]. Investment Strategy - Recursion aims to revolutionize drug discovery through AI-powered models, potentially reducing costs and improving efficiency [20][21]. - The company faces competition from traditional biopharma giants and large technology firms investing in drug discovery technologies [22]. - RXRX's first-mover advantage in AI-driven drug discovery positions it as a leader, with a strong pipeline focused on Precision Oncology and Rare Diseases [23].

Core Viewpoint - Recursion Pharmaceuticals' stock surged by 15.8% due to Nvidia's decision to retain its shares in the company, which is seen as a vote of confidence despite Nvidia exiting other AI stocks [1][2][3]. Group 1: Nvidia's Influence - Nvidia disclosed its holdings, revealing it maintained its 7.7 million shares in Recursion Pharmaceuticals while selling off positions in other AI stocks [2]. - The decision by Nvidia to keep its stake in Recursion is interpreted positively by investors, suggesting confidence in Recursion's potential [3][4]. Group 2: Recursion's Position - Recursion Pharmaceuticals utilizes AI in its drug discovery process and has developed the largest supercomputer in the biopharmaceutical industry with Nvidia's assistance [3]. - Despite the positive sentiment, Recursion's experimental drugs are still in early testing stages, making it a riskier investment for conservative investors [5].

Company Performance - Recursion Pharmaceuticals (RXRX) closed at $8.50, reflecting a +1.92% change from the previous trading day's closing, outperforming the S&P 500 which gained 1.04% [1] - The stock has increased by 29.91% over the past month, leading the Medical sector's gain of 3.72% and the S&P 500's gain of 3.92% [1] Upcoming Earnings - The company is expected to report an EPS of -$0.36, which is a 10% improvement from the same quarter last year [2] - Revenue is forecasted to be $28.73 million, indicating a significant increase of 163.85% compared to the same quarter of the previous year [2] Analyst Estimates - Recent changes to analyst estimates for Recursion Pharmaceuticals reflect shifting business dynamics, with positive revisions indicating analyst optimism about the company's profitability [3] - The Zacks Consensus EPS estimate has shifted 1.07% downward over the past month, and the company currently holds a Zacks Rank of 3 (Hold) [5] Industry Context - The Medical - Drugs industry, part of the Medical sector, has a Zacks Industry Rank of 84, placing it in the top 34% of over 250 industries [6] - Strong individual industry groups, as measured by the Zacks Industry Rank, show that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [6]

Company Overview - Recursion Pharmaceuticals (RXRX) shares increased by 8.9% to $8.34 in the last trading session, with a notable trading volume, and have gained 21.2% over the past four weeks [1][2] - The company utilizes its proprietary AI-based drug discovery platform, Recursion OS, to develop innovative therapeutic candidates for oncology, rare diseases, and infectious diseases [2] Financial Performance - Recursion Pharmaceuticals is projected to report a quarterly loss of $0.36 per share, reflecting a year-over-year increase of 10%, while revenues are expected to reach $28.73 million, a significant rise of 163.9% compared to the same quarter last year [3] - The consensus EPS estimate for Recursion has remained stable over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] Industry Context - Recursion Pharmaceuticals is categorized under the Zacks Medical - Drugs industry, where another company, Bioventus (BVS), experienced a 3.8% decline to $10.27, despite a 20.4% return over the past month [4] - Bioventus has an unchanged consensus EPS estimate of $0.09 for its upcoming report, which represents a 28.6% increase from the previous year, and currently holds a Zacks Rank of 4 (Sell) [5]

Met primary endpoint of safety and tolerability in CCM patients with no treatment-related discontinuations or Grade 3 adverse eventsIn comparison to placebo, treatment with REC-994 400 mg showed promising signals in both MRI-based lesion volume reduction and functional outcome as measured by changes in the modified Rankin scale (mRS) scoreIn patients with cavernomas located in the brainstem, a subset of patients with significant unmet need, decreases in mean absolute total lesion volume and improvements in ...

Recursion Pharmaceuticals (RXRX) shares ended the last trading session 8.9% higher at $7.49. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 5% loss over the past four weeks.The sudden rise in the stock price was observed after President Donald Trump announced a $500 billion project to develop and expand AI infrastructure, at his inauguration event on Monday. Investors likely anticipate that Recursion, being a Tech ...