Recursion extends gains in AI-driven rally
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Shares of Recursion Pharmaceuticals (NASDAQ:RXRX) jumped for the second straight session on Tuesday to double its market cap in less than three weeks amid investor interest in AI-driven drug development.
Recursion (RXRX), identified as a “clinical-stage TechBio company,” uses machine learning to speed up drug discovery.
The stock with a short interest of ~14% has added more than 92% this month, including a ~13% rise on Tuesday when ~7.2M company shares changed hands compared to the 65-day average of ~1.5M.
Early this month, the Salt Lake City, Utah-based Recursion (RXRX) announced agreements to acquire two Canadian companies focused on AI-enabled drug discovery, Cyclica, and Valence, for $40M and $47.5M, respectively, in cash and stock.
Meanwhile, despite a nearly ~9% decline on Tuesday, Exscientia (NASDAQ:EXAI), another AI-driven pharma tech company, has gained more than 36% this month.
Last week, the U.K.-based biotech announced the third molecule created using its AI-driven drug discovery platform. The company said that the candidate called DSP-2342, which has potential in psychiatric disease, is set to undergo a Phase 1 trial in the U.S. supported by its partner Sumitomo Pharma Co., Ltd.