Keith Speights, The Motley Fool
Fri, Apr 11, 2025, 8:11 AM 2 min read
In This Article:
Shares of Recursion Pharmaceuticals (NASDAQ: RXRX) were skyrocketing astir 20% higher arsenic of 11 a.m. ET connected Friday. The large summation for the biotech banal came aft the U.S. Food and Drug Administration (FDA) announced connected Thursday that it plans to regenerate the usage of animals successful investigating drugs with "more effective, human-relevant methods," including artificial quality (AI) models.
Recursion uses AI successful its cause find and improvement processes. The institution built 1 of the largest datasets successful the biopharmaceutical manufacture with implicit 60 petabytes of data.
The FDA volition initially absorption connected monoclonal antibodies with its inaugural to regenerate carnal investigating and aboriginal grow to different types of drugs. How volition the agency's determination interaction Recursion? It's excessively soon to cognize for sure.
However, it's imaginable that different drugmakers could beryllium much funny successful teaming up with Recursion with the FDA promoting the usage of AI models successful cause development. Recursion already partners with 4 large pharmaceutical companies: Bayer, Merck KGaA, Roche's Genentech unit, and Sanofi.
Recursion Pharmaceuticals banal isn't a bully acceptable for risk-averse investors. The institution remains unprofitable and is losing much wealth arsenic it ramps up objective improvement of respective candidates. Recursion's astir precocious programme is lone successful signifier 1/2 testing. There's nary warrant that immoderate of the pipeline candidates volition beryllium palmy successful objective studies and triumph regulatory approvals.
However, assertive investors could find Recursion Pharmaceuticals attractive. Its collaborations with large drugmakers springiness it much stableness than galore clinical-stage biotech companies have. The institution is besides backed by Nvidia. Recursion's AI-driven processes clasp important potential. This is simply a risky pick, but 1 that conscionable mightiness wage disconnected handsomely implicit the agelong run.
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