In an effort to save costs and make its financial resources last longer, Recursion Pharmaceuticals (RXRX 1.49%) is slimming down and streamlining. After the biotech updated its strategy to do so on Tuesday, investors became more hopeful on its future, bidding the stock up; it closed 1.6% higher at the end of the day. This rise outpaced that of the S&P 500 (^GSPC 0.55%), which increased by 0.55%. Job cuts coming, cash runway extendedBefore market open, Recursion disclosed in a tersely worded regulatory filin ...

Boltz-2 is the first biomolecular co-folding model to combine structure and binding affinity prediction, approaching the accuracy of physics-based free energy perturbation (FEP) calculations but at speeds up to 1000x faster in standard benchmarks The development of this open source model for academic and commercial use was a collaborative effort, combining MIT’s deep academic expertise with Recursion's AI research and NVIDIA-accelerated supercomputer, BioHive-2 Salt Lake City, UT, June 06, 2025 (GLOBE N ...

It has been about a month since the last earnings report for Recursion Pharmaceuticals (RXRX) . Shares have added about 5.7% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Recursion Pharmaceuticals due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.How Have Estimat ...

Core Insights - Recursion Pharmaceuticals (RXRX) and Schrodinger (SDGR) are leading the integration of artificial intelligence in drug discovery, aiming to transform the biotech sector by improving efficiency and reducing costs [1][2][3] Company Overview Recursion Pharmaceuticals (RXRX) - RXRX utilizes its AI-driven platform, Recursion OS, in collaboration with NVIDIA to enhance drug discovery processes [5] - The company has faced setbacks, including the discontinuation of its lead candidate REC-994 and REC-2282 due to unfavorable efficacy results [6][8] - RXRX is focusing on developing candidates like REC-4881 for familial adenomatous polyposis, which has shown a preliminary median 43% reduction in polyp burden [8] - The company ended Q1 2025 with a cash balance of $509 million, expected to sustain operations into mid-2027 [9] - RXRX has collaboration agreements with major pharmaceutical companies, generating $15 million in collaboration revenues in Q1 2025, a slight increase from the previous year [10] Schrodinger (SDGR) - SDGR employs a physics-based computational platform for drug discovery, with its lead candidate SGR-1505 currently in a phase I study for B-cell malignancies [11][13] - The candidate has received FDA's Orphan Drug designation for mantle cell lymphoma [14] - SDGR's second candidate, SGR-2921, is being evaluated for acute myeloid leukemia, with initial results expected in the second half of 2025 [15] - The company generated $59.6 million in total revenues in Q1 2025, a 63% year-over-year increase [17] Financial Performance - RXRX's stock has declined 39.6% year-to-date, while SDGR's stock has increased by 10.9% [25] - RXRX trades at 1.78 times its book value, significantly lower than SDGR's 4.2 times, making RXRX more attractive from a valuation perspective [26][27] - The Zacks Consensus Estimate for RXRX's 2025 revenues implies a 22% year-over-year improvement, while SDGR's estimate suggests a 21% improvement but a widening loss per share [18][21] Market Position and Competitive Landscape - Both companies face competition from other biotech firms and tech-driven drug discovery companies, which may challenge their market differentiation [31] - Despite the competitive landscape, both RXRX and SDGR have the potential to revolutionize drug discovery by delivering cost-effective therapies [32] - RXRX is viewed as a better investment opportunity due to its innovative pipeline, collaboration agreements, and favorable valuation compared to SDGR [34]

Recursion Pharmaceuticals (RXRX) shares have plunged 21.6% so far in May. This considerable decline in the stock was observed after the company reported weaker-than-expected first-quarter 2025 results, as both earnings and revenues missed estimates, last week. In the absence of an approved product, RXRX only recognizes collaboration and grant revenues from its partners.The decline was further aggravated after Recursion Pharmaceuticals discontinued the development of its lead candidate, REC-994, for treating ...

Core Viewpoint - Recursion Pharmaceuticals experienced a significant stock decline of 24% following disappointing first-quarter earnings and concerns over federal research funding cuts impacting the biotech industry [1][2][3]. Financial Performance - Recursion reported an earnings-per-share (EPS) loss of $0.50 on sales of $14.75 million, slightly beating Wall Street's expectations but falling short of the forecasted sales of $14.98 million [2]. Development Pipeline - The company announced it would reduce its development pipeline significantly to cut costs, indicating a strategic shift in its research focus [2][4]. Industry Challenges - The Trump administration's proposed cuts to the National Institutes of Health (NIH) and other research funding sources are expected to make capital raising more difficult for biotech firms, as indicated by a survey of industry leaders [3]. Long-term Viability - Recursion is heavily investing in research and development while operating at a loss, suggesting that it will require external funding to sustain its operations and achieve long-term profitability [4]. Investment Outlook - Despite the potential of Recursion's innovative use of AI in drug discovery, the company faces significant uncertainty, making it a suitable investment only for aggressive, risk-tolerant investors [5].

Shares of Recursion Pharmaceuticals (RXRX -11.57%) are tumbling on Tuesday. The stock lost 10.3% as of 2:50 p.m. ET and was down by as much as 11.8% earlier in the day. The move comes as the S&P 500 and Nasdaq Composite both slipped by 0.6%.The data from an April survey revealed Tuesday showed that the biotech industry is fearful that President Donald Trump's federal research cuts will make raising capital more challenging. This comes just a day after Recursion revealed its disappointing first-quarter earni ...

Core Viewpoint - Recursion Pharmaceuticals reported a wider-than-expected loss in Q1 2025, leading to a significant decline in its stock price due to disappointing financial results and pipeline setbacks [1][2][5]. Financial Performance - The company reported a loss of 50 cents per share, compared to the Zacks Consensus Estimate of a loss of 44 cents, and a loss of 39 cents per share in the same quarter last year [1]. - Total revenues for the quarter were $14.7 million, a 7% increase year over year, but below the Zacks Consensus Estimate of $20 million [2]. - Research and development (R&D) expenses surged 92% to $129.6 million, driven by agreements for upgrading its therapeutic development platform and a business combination with Exscientia [3]. - General and administrative (G&A) expenses rose 74% to $54.7 million, influenced by the inclusion of G&A expenses from the Exscientia business combination [4]. - The company had cash and equivalents of $509 million as of March 31, 2025, down from $603 million at the end of 2024, which is expected to sustain operations into mid-2027 [5]. Pipeline Developments - Recursion Pharmaceuticals discontinued the development of its lead candidate, REC-994, and REC-2282 due to unfavorable efficacy results from mid-stage studies [7]. - The company also halted the mid-stage study of REC-3964 for treating clostridioides difficile infection, opting to focus on areas with greater unmet needs [8]. - The company is now concentrating on other candidates, including REC-4881, which showed a preliminary median 43% reduction in polyp burden in a phase Ib/II study [9][10]. - REC-1245 is being evaluated in the phase I/II DAHLIA study for biomarker-enriched solid tumors and lymphoma, with data expected in the first half of 2026 [12].

Recursion Pharmaceuticals (RXRX -15.70%) didn't have a fine start to the working week on Monday, at least as far as its stock was concerned. Investors traded out of it following the clinical-stage biotech's first-quarter earnings release and business update, and the share price was down by 15% in mid-session trading. The S&P 500 index was doing comparatively better, with a 0.3% decline. Light revenue and a deepening net lossFor the quarter, Recursion -- which although a clinical-stage company earns some coi ...

Recursion Pharmaceuticals (RXRX) Q1 2025 Earnings Call May 05, 2025 08:00 AM ET Company Participants Chris Gibson - Co-Founder & CEONajat Khan - Chief R&D Officer, Chief Commercial Officer and DirectorBen Taylor - CFO & President Recursion UK Chris Gibson Hi, everybody. My name is Chris Gibson, cofounder and CEO of Recursion, and I'm delighted to welcome you to our learnings call this morning. We're gonna go ahead and get started. Perfect. So, of course, important to note that we're gonna be providing forwa ...