Recursion Pharmaceuticals (RXRX) Stock is Trending After Hours: Here’s What You Should Know

Recursion Pharmaceuticals Inc. (NASDAQ:RXRX) shares are trending on Friday.

Shares of the Utah-based clinical-stage biotechnology company edged 0.24% higher to $4.17 after the bell on Thursday, following a $200 million stock offering.

Offering Priced at $3.25

Recursion priced an underwritten offering of 61.54 million Class A shares at $3.25 each.

Gross proceeds are expected to be about $200 million before fees.

The offering is expected to close on or about Friday.

Institutional Investors and Bookrunners Behind the Offering

Investors participating in the offering include Janus Henderson Investors, Invus, Longaeva Partners, ARK Invest and Driehaus Capital Management.

Leerink Partners, Goldman Sachs & Co. LLC (NYSE:GS), Morgan Stanley & Co. LLC (NYSE:MS) and Evercore Group L.L.C. (NYSE:EVR) are serving as joint bookrunners, while Needham & Company, LLC is acting as the lead manager for the offering.

Sanofi Exercises Option on First Recursion Drug Candidate

On Thursday, separately, Recursion announced that France-based Sanofi (NASDAQ:SNY) optioned the first development candidate from the two companies’ multi-program research collaboration.

The option triggered a $10 million milestone payment to Recursion. Total upfront and milestone payments from Sanofi now stand at $144 million.

Recursion remains eligible for more than $300 million in additional milestones, plus double-digit royalties on net product sales if the drug is approved.

Najat Khan President and Chief Executive Officer of Recursion, said, "Together with Sanofi, we tackled a difficult design problem against a dual target product profile with high potential and delivered a molecule that Sanofi has now selected for its development pipeline."

Alyssa Johnsen, Therapeutic Area Head, Development, Immunology & Inflammation at Sanofi, said, "By combining Sanofi’s drug discovery and clinical and translational knowledge in immunology with Recursion’s AI-driven platform, we were able to move with speed and precision in a space where that balance is notoriously hard to achieve."

The candidate is a potential first-in-class oral small molecule being developed to treat inflammatory diseases. It is expected to enter Phase 1 clinical trials in 2027, with Sanofi funding and leading its further development.

Trading Metrics, Technical Analysis

Recursion Pharmaceuticals has a market capitalization of about $2.22 billion, a 52-week high of $7.18 and a 52-week low of $2.77.

RXRX has a Relative Strength Index (RSI) of 54.33.

Over the past 12 months, RXRX shares have declined 34.59%.

The biotech stock is currently trading at 31.52% of its 52-week range.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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