Recursion Pharmaceuticals Stock Is Sliding Wednesday: What's Going On?

Recursion Pharmaceuticals Inc RXRX shares are trading lower Wednesday after the company reported mixed fourth-quarter financial results.

What Happened: Recursion reported fourth-quarter revenue of $10.89 million, which missed the consensus estimate of $20.35 million. The clinical stage biotech company reported a quarterly loss of 42 cents per share, which beat estimates for a loss of 44 cents per share, according to Benzinga Pro.

Recursion said multiple clinical programs from its first generation platform are on track to read out Phase 2 data in the second half of 2024 and first half of 2025.

The company’s in-licensed program (Target Epsilon) that emerged from its fibrosis collaboration with Bayer is now entering IND-enabling studies and Recursion is already implementing AI models into its OS following its recent partnership announcement with Tempus.

"As we have watched the dynamics of our landscape, it appears that BioTech is increasingly evolving into TechBio, where it is imperative for life science companies to embrace digital nativity similar to how SaaS companies 10+ years ago evolved to being cloud-native in order to thrive," said Chris Gibson, co-founder and CEO of Recursion.

"In this data-driven age, we believe the most important differentiator will be connected data in order to increasingly understand and treat the complexities of human disease. Recursion plans to continue leading the field in terms of data generation and aggregation."

Following the print, Needham analyst Gil Blum maintained Recursion Pharmaceuticals with a Buy rating and raised the price target from $15 to $17.

It’s also worth noting that Nvidia reported investments in multiple companies in a 13-F filing with the SEC earlier this month. Recursion Pharmaceuticals was among the names listed. According to the filing, the company is Nvidia's second-largest investment after Arm Holdings.

See Also: Cramer Says This AI Stock Is Just An Nvidia Play, Prefers This Stock Over Anheuser-Busch

RXRX Price Action: Recursion shares were down 10.7% at $13.86 at the time of writing, according to Benzinga Pro.

Photo: 3844328 from Pixabay.