Latest news with #Exscientia
Globe and Mail
16-07-2025
- Business
- Globe and Mail
Can Recursion Pharmaceuticals' Strategic Deals Fuel Long-Term Growth?
Recursion Pharmaceuticals RXRX is strategically leveraging its AI-powered drug discovery platform through multiple high-value collaborations, positioning itself for long-term growth and sustainability. By partnering with major pharmaceutical companies, Recursion Pharmaceuticals not only expands its pipeline but also secures substantial non-dilutive funding to support its R&D activities. Through its collaboration with Bayer, Recursion Pharmaceuticals is advancing treatments for fibrosis, with potential milestone payments totaling up to $1.5 billion and tiered royalties, reinforcing its revenue potential. Its agreement with Roche focuses on neuroscience and oncology, giving Roche the option to launch up to 40 programs, each of which could yield more than $300 million in milestones for RXRX, along with royalties. Partnerships with Sanofi and Merck further diversify Recursion Pharmaceuticals' pipeline across oncology, immunology, and neuroinflammation, together offering billions in milestone opportunities and consistent royalty streams. In addition to these pharma collaborations, Recursion Pharmaceuticals is investing heavily in AI infrastructure. Its alliance with NVIDIA led to the 2024 upgrade of its supercomputer to BioHive-2. The acquisition of Exscientia in late 2024 added over 20 programs to Recursion Pharmaceuticals' portfolio and increased its milestone opportunity to more than $20 billion, strengthening its financial foundation. Further collaborations with technology leaders like Google Cloud, Helix, and Faro Health enhance RXRX's AI capabilities, accelerating drug discovery and development. These strategic partnerships not only provide immediate financial support but also amplify Recursion Pharmaceuticals' ability to scale its platform, pursue innovative therapies, and forge new alliances, positioning the company for sustained, long-term success in the evolving biotech landscape. RXRX Faces Competitive Pressure in the TechBio Industry In the TechBio space, Relay Therapeutics RLAY and Schrödinger SDGR are emerging as strong competitors to Recursion Pharmaceuticals, who also leverage AI-driven platforms to enter into strategic collaboration agreements and develop novel therapies. RLAY is on track to advance its lead investigational candidate, RLY-2608, into a phase III study for metastatic breast cancer. An early-stage study evaluating the candidate for a second indication, vascular malformations, is also currently underway. Meanwhile, SDGR's lead asset SGR-1505 is currently being evaluated in an early-stage study for B-cell malignancies. Schrödinger is also evaluating two other candidates, SGR-2921 and SGR-3515, in separate phase I studies for leukemia and solid tumors. Both Relay Therapeutics and Schrödinger are steadily building robust pipelines through cutting-edge approaches. RXRX'sStock Price, Valuation & Estimate Movements Year to date, RXRX shares have plunged 22.8% against the industry 's 0.1% growth. Recursion Pharmaceuticals has also underperformed the sector and the S&P 500 during the same time frame, as seen in the chart below. RXRX Stock Underperforms the Industry, Sector & the S&P 500 Recursion Pharmaceuticals is trading at a discount to the industry, as seen in the chart below. Going by the price/book value ratio, the company's shares currently trade at 2.27, which is less than 3.14 for the industry. The stock is trading significantly below its five-year mean of 3.56. RXRX Stock Valuation Image Source: Zacks Investment Research Loss estimates for 2025 have remained constant at $1.34 per share over the past 60 days. During the same time frame, RXRX's 2026 loss per share estimates have narrowed from $1.17 to $1.08. RXRX Estimate Movement Recursion Pharmaceuticals currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Schrodinger, Inc. (SDGR): Free Stock Analysis Report Relay Therapeutics, Inc. (RLAY): Free Stock Analysis Report Recursion Pharmaceuticals, Inc. (RXRX): Free Stock Analysis Report
Yahoo
11-07-2025
- Business
- Yahoo
Morgan Stanley Assumes Coverage of Recursion Pharmaceuticals (RXRX) Stock with an Equal Weight Rating
Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) is one of the Morgan Stanley assumed coverage of the company's stock with an 'Equal Weight' rating and a price objective of $5, as reported by The Fly. As per the analyst, Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX)'s stock witnessed volatility because of a combination of macroeconomic factors, underperformance on initial clinical results, and uncertainty related to the valuation and revenue drivers. Furthermore, the recent pipeline prioritization and stage of clinical development for the proprietary pipeline tend to leave numerous open questions on valuation, added the firm analyst. A pharmacist in a hospital pharmacy stands next to a row of various drug containers. However, as part of the business combination with Exscientia, Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) has been proactively streamlining its portfolio, platform, and operations, making trade-offs to emphasize resources on programs having the strongest scientific rationale and highest potential for near and long-term impact. In Q1 2025, Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX)'s total revenue, consisting mainly of revenue from collaboration agreements, came in at $15 million as compared to $14 million for Q1 2024. This was because of the timing of projects from its Sanofi, Roche and Merck KGaA, Darmstadt, Germany collaborations. While we acknowledge the potential of RXRX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-07-2025
- Business
- Yahoo
Morgan Stanley Assumes Coverage of Recursion Pharmaceuticals (RXRX) Stock with an Equal Weight Rating
Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) is one of the Morgan Stanley assumed coverage of the company's stock with an 'Equal Weight' rating and a price objective of $5, as reported by The Fly. As per the analyst, Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX)'s stock witnessed volatility because of a combination of macroeconomic factors, underperformance on initial clinical results, and uncertainty related to the valuation and revenue drivers. Furthermore, the recent pipeline prioritization and stage of clinical development for the proprietary pipeline tend to leave numerous open questions on valuation, added the firm analyst. A pharmacist in a hospital pharmacy stands next to a row of various drug containers. However, as part of the business combination with Exscientia, Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) has been proactively streamlining its portfolio, platform, and operations, making trade-offs to emphasize resources on programs having the strongest scientific rationale and highest potential for near and long-term impact. In Q1 2025, Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX)'s total revenue, consisting mainly of revenue from collaboration agreements, came in at $15 million as compared to $14 million for Q1 2024. This was because of the timing of projects from its Sanofi, Roche and Merck KGaA, Darmstadt, Germany collaborations. While we acknowledge the potential of RXRX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Scotsman
11-06-2025
- Business
- Scotsman
Scotland can be an innovation nation again - here's how
PA This is a chance to write a new chapter—not by erasing the past, but by building on it Sign up to our daily newsletter – Regular news stories and round-ups from around Scotland direct to your inbox Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Scotland has led the world before, and it can lead again. Scotland has more world- class universities per head than innovation powerhouses like Switzerland or Singapore. It's the only part of the UK where high-potential firms are more likely than their London peers to secure early-stage investment. And half of the UK's most active angel investor networks are based here. Thanks to decades of effort by businesses, universities, and public agencies, Scotland may be the best place in the UK to start an innovative firm. Mission accomplished, you might think. Wait a while, and the jobs, industries, and incomes will follow. That's how growth has happened before. As the economist David Autor has shown, the jobs most of us do today didn't even exist in 1940. Out with the miners, in with the solar engineers and wedding planners. Advertisement Hide Ad Advertisement Hide Ad But there's nothing automatic about translating headline innovation into broad-based prosperity. Too many Scottish firms, once they reach a certain scale, find they must either sell or relocate elsewhere in the UK or to the US to grow. Dundee University spin-out Exscientia—a global leader in AI drug discovery—moved to Oxford to become Scotland's first biotech 'unicorn'. The bigger problem is structural. Scotland has one of the most lopsided innovation economies in the world. It ranks second globally for university R&D as a share of GDP, yet sits mid-table on private sector R&D. For every pound of public research spending in Scotland, just £1.46 is matched by private investment—half the UK average, and a third of the OECD rate. It doesn't have to be this way. In a new report, Innovation Nation, published last week by Our Scottish Future, I set out a five-point plan to raise private innovation and ensure Scotland's ideas scale at home. I begin with a call for a single plan, shared between the Scottish Government, UK Government and local leadership. There is no 'silver bullet' for policymakers; success will require the careful coordination of reserved and devolved policy levers, as well as local consent and support. That shared set of priorities is far from Scotland's current reality: a spaghetti junction of competing Scottish and UK institutions, impossible for business to navigate and – taken together – less than the sum of its parts. Dan Turner | Dan Turner But a plan for what? Scotland's most pressing problem is not an absence of talent, infrastructure and access to capital. It's that – with a few notable exceptions – it lacks what economists call 'clusters' of similar businesses, all of whom become more productive because they can draw on a shared pool of expertise, workers, supply chains and specialist infrastructure such as lab space or testing facilities. As well as being good for individual firms, these clusters are good for communities: they give firms a strong reason to stay put and invest, rather than relocate elsewhere. Advertisement Hide Ad Advertisement Hide Ad My second recommendation is for tax and planning reform, capital spending, and political leadership to create five 'Growth Zones'. These would be small campuses, putting major research facilities, indigenous start-ups, and multinational enterprises side-by-side. Scotland already has the first two; the Scottish and UK governments will have to negotiate the third, while local leaders do the hard work of assembling the land, finding the funders, builders and tenants, and creating new economic hubs. To do that, local leaders will need more power, status and – correspondingly – accountability. Following earlier Our Scottish Future work, I call for Scottish Combined Authorities, based on the successful model of Manchester, to cover Scotland's major urban areas. As well as being responsible for the Growth Zones, these Scottish Combined Authorities should play a lead role in connecting the engines of the innovation economy into wider social and economic life on their patch. If we don't make an intentional effort, overreliance on innovation-led growth can make inequalities worse. And that's not just inequitable: it's inefficient. Researchers at Harvard and MIT have shown that we could raise patenting levels fourfold if we could bring talented youths from communities typically left behind by innovation into the labs and research centres. Advertisement Hide Ad Advertisement Hide Ad And last but not least, any shift in efforts towards building up Scotland's clusters can't come at the cost of stopping – or worse, reversing – support for the universities and early stage investors that currently speaks so much to Scotland's credit. The risk, in Holyrood and Westminster, is that we cut back on innovation funding and cut ourselves off to global talent. Scotland cannot afford to kill its golden goose. The work we do shapes how we see ourselves and the places we live. Scotland's identity is still deeply tied to its industrial heyday—shipbuilding on the Clyde, coal and oil from Fife and Aberdeenshire, medical breakthroughs from Edinburgh. But there is no reason the 21st century can't belong to Scotland too. Indeed, we can see its outline already. Glasgow's former workshops now house Europe's largest satellite cluster and cutting-edge life sciences. Edinburgh's fintech firms are reimagining payment and exchange. Dundee has shifted from jute to gaming and advanced therapeutics. Aberdeen is preparing for its second great energy transition, leading on hydrogen and offshore renewables. This is a chance to write a new chapter—not by erasing the past, but by building on it. Scotland's future industries can honour its industrial legacy: drawing on the same places, the same skills, the same deep pride in work. But to get there, we need to do something new: create jobs in the innovation economy, at every skill level, across the country. Advertisement Hide Ad Advertisement Hide Ad That is the challenge and the opportunity. To remake Scotland's innovative legacy —not as a monument to past glory, but as a home for modern, inclusive, enduring industry. That's what it means to become an innovation nation.
Yahoo
06-05-2025
- Business
- Yahoo
AI specialist Recursion trims pipeline in latest shakeup
This story was originally published on BioPharma Dive. To receive daily news and insights, subscribe to our free daily BioPharma Dive newsletter. AI drug discovery specialist Recursion Pharmaceuticals is shelving three of its most advanced drug prospects in an effort to cut costs following a merger last year. Alongside its latest quarterly earnings report, the company revealed plans to halt development of drugs for cerebral cavernous malformation and neurofibromatosis type II that were in mid-stage testing. Recursion will also pause testing and attempt to license out a therapy it's been advancing for C. difficile infections. The decisions reflect Recursion's plan to focus on 'areas of high unmet need where we believe we can have the greatest impact,' said Najat Khan, the company's chief R&D officer and chief commercial officer, in a statement. Following a merger with fellow AI biotech Exscientia last year, the company has been 'proactively streamlining' its operations and 'making deliberate tradeoffs' to focus resources on its most impactful programs, Khan added. Four years ago, Recursion raised $436 million in one of the biotech sector's most lucrative initial public offerings. The company secured those funds on the promise of AI, which is seen by proponents as a way to speed up drug discovery and increase its odds of success. And in combining with Exscientia in 2024, Recursion touted a sprawling pipeline that would produce 10 near-term clinical readouts and had the potential to deliver multiple blockbusters. The company hasn't yet fulfilled its promise, though. Early clinical data for its treatment for cerebral cavernous malformation disappointed investors and, according to the company's statement Monday, the 'totality' of the results accrued since then led it to stop testing. The neurofibromatosis type II therapy is being scrapped for similar reasons, while a changing treatment landscape has reduced the need for the C. difficile drug it's been developing. To Mani Foroohar, an analyst with Leerink Partners, the pipeline cuts were 'inevitable' given the company's 'unsustainable cash burn.' The company booked a roughly $464 million net loss in 2024, following a $328 million net loss the year prior. It had $509 million in cash as of the end of March. Foroohar added in a research note Monday that Phase 2 data the company released Sunday in a condition that causes the growth of potentially dangerous polyps were 'hard to interpret.' The findings do 'little to improve confidence in clinical execution, as cash burn and dilution risk are top of mind,' he wrote.
