Recursion Pharmaceuticals Stock Is Moving Tuesday: What's Happening?

Shares of clinical stage biotech company Recursion Pharmaceuticals Inc RXRX are trading higher Tuesday. The company’s CEO Chris Gibson joined CNBC for an interview ahead of a presentation with Nvidia Corp’s NVDA Jensen Huang late Monday.

What Happened: Gibson went on CNBC's "Closing Bell: Overtime" just "minutes" before he was set to take the stage at the company’s investor day with Huang to discuss the role AI will play in drug discovery and development in the future. The stock jumped as he provided more information on the company’s partnership with Nvidia.

Gibson highlighted that Recursion has built its BioHive-2, the most powerful supercomputer in the biotech space, with the help of Nvidia.

"We've been able to demonstrate that using these tools, we can roughly three times the speed of discovering and developing medicines towards the clinic and dramatically reduce the costs," Gibson said on the show.

"Ultimately, the most important lever is going to be improving the probability of success … 90% of drugs that go into clinical trials today fail … and it's because biology is so complex and machine learning and AI are the right tools when you bring the right data and the right compute to bear to help us make sense and really decode biology."

Nvidia reported investments in multiple companies, including Recursion, in a 13-F filing with the SEC earlier this year. According to the filing, Recursion is Nvidia’s second-largest investment after Arm Holdings.

On Tuesday, Needham analyst Gil Blum reiterated Recursion with a Buy rating and maintained a price target of $17.

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RXRX Price Action: Recursion Pharmaceuticals shares were up 2.57% at $9.58 at the time of writing Tuesday, according to Benzinga Pro.

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