Why Is Recursion Pharma Stock Surging On Monday?

In a recent social media post, Peter Ray, senior director of medicinal chemistry at Recursion Pharmaceuticals, Inc. RXRX, drew attention to a new article in WIRED from Veronique Greenwood (vero_greenwood).

This article highlighted REC-3565, an investigational drug candidate. Greenwood’s piece quoted Ray, who expressed his excitement about a molecule he and his colleagues at Recursion had been developing: REC-3565, a MALT1 inhibitor.

This drug is specifically designed to interfere with the growth of blood cancer cells. Ray further emphasized that REC-3565, currently in Phase 1 trials and developed using Recursion’s advanced AI platform, would not have been conceived through traditional human design methods.

Also Read: Recursion Pharmaceuticals’ Update Could Shed Light On Pipeline, Cost-Saving Plans, Analyst Says

Recursion Pharmaceuticals is a clinical-stage TechBio company that leverages artificial intelligence (AI), automation, and experimental biology to accelerate the discovery and development of new drugs.

The company acquired REC-3565 (formerly known as EXS73565) as part of a strategic deal with Exscientia, where Exscientia shareholders received 0.7729 Recursion shares for each of their Exscientia shares, with any fractional shares paid in cash. REC-3565 is designed to treat patients with relapsed/refractory chronic lymphocytic leukemia and B-cell lymphomas.

Greenwood’s article also stemmed from her attendance at an event held at Recursion’s London office, shortly after the company’s combination with Exscientia. During this event, details emerged about another molecule, REC-617, which had been developed by Exscientia.

This drug had been administered to 18 patients suffering from terminal cancers that had ceased responding to other treatments. Remarkably, one patient, a woman with ovarian cancer that had recurred three times, defied expectations by surviving.

She remained alive six months after commencing the treatment. Due to the blinded nature of the trial, neither Recursion nor Exscientia personnel were aware of her identity, but as Greenwood described, in that room, the patient “seemed to radiate with life.”

Greenwood also noted the efficiency of AI in developing this drug, as it necessitated the synthesis and testing of only 136 molecules in cells, significantly accelerating the process and reducing costs, in stark contrast to the typically slow and expensive traditional drug discovery methods.

Ray underscored Recursion’s pioneering role, stating that the company is “laying the groundwork for what drug discovery will someday be like across the industry.” He articulated his vision for a continuous learning system, explaining, “If we’re doing this right, if we’re building a learning system, the next 10 drugs after that have a higher probability of success. Next 10 drugs after that, higher probability of success. We keep refining this thing.”

Price Action: RXRX stock is trading higher by 20% to $7.01 at last check Monday.

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