Recursion Pharmaceuticals Shares Are Up Today: what's Going On?

Shares of Recursion Pharmaceuticals, Inc. RXRX are trading higher Friday after the U.S. Food and Drug Administration announced plans to phase out its requirement for animal testing in favor of more modern, human-relevant methods.

The agency stated that it will begin implementing the shift immediately, replacing animal models with AI-based computational toxicity assessments, human cell lines, and organoid-based testing. The move is designed to streamline drug development, lower research and development costs, and speed up the process of bringing new treatments to market.

Recursion, a biotechnology company focused on using artificial intelligence to accelerate drug discovery, was among the top gainers following the announcement. Other companies in the health care technology and AI-driven biotech space, including Certara Inc., Schrodinger Inc., Simulations Plus Inc. and Absci Corp., also saw double-digit gains in extended trading.

The agency says the change will improve safety and reliability while reducing dependence on animal models, marking a new era in drug development.

RXRX Price Action: Recusion Pharmaceuticals shares were up 19.5% at $5.39 at the time of writing, according to Benzinga Pro.

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