Recursion Pharmaceuticals Stock Is Sliding Tuesday: What's Going On?

Recursion Pharmaceuticals Inc RXRX shares are trading lower. The company on Tuesday announced Phase 2 data for an investigational treatment for symptomatic Cerebral Cavernous Malformation (CCM).

What Happened: Recursion on Tuesday announced top-line results of the SYCAMORE trial, studying REC-994 in symptomatic CCM patients, showing that REC-994 met its primary endpoint of safety and tolerability. However, the stock appears to be selling off after the company said improvements in either patient or physician-reported outcomes were not yet seen at the 12 month mark.

Recursion noted that secondary efficacy endpoints showed a trend towards reduced lesion volume and hemosiderin ring size in patients at the highest dose compared to placebo.

Recursion said it plans to present data from the trial at a forthcoming medical conference. The company will also submit the data for publication in a peer reviewed scientific journal. Recursion noted that a meeting with the FDA is anticipated as soon as practical to discuss plans for an additional clinical study.

“We are encouraged by the recent data from our signal-finding Phase 2 study in CCM, where the trial successfully met its primary safety endpoint and became the first investigational therapy to demonstrate safety alongside some promising trends in exploratory efficacy endpoints. These results provide critical insights that will inform our next study design, including exploring study duration, higher doses, and a larger cohort of patients,” said Najat Khan, chief R&D officer and chief commercial officer of Recursion. 

Recursion has seen increased retail interest in recent months. 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.

See Also: Google, DOJ Trial Drama To Hit Earnings By Up To 10%, Says JPMorgan: ‘Status Quo Is No Longer Possible’

RXRX Price Action: Recursion shares were down 9.89% at $6.56 at the time of publication, according to Benzinga Pro.

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