Why Shares of Recursion Pharmaceuticals Are Skyrocketing Wednesday
Shares of Recursion Pharmaceuticals (NASDAQ: RXRX) were up more than 61% as of 11:30 a.m. on Wednesday. The clinical-stage biotech company announced that technology company Nvidia had made a $50 million investment in Recursion.
Recursion is a drug discovery company that uses uses artificial intelligence (AI) to find therapies, using one of most powerful supercomputers in the world. The investment from Nvidia was made as part of a private investment in public equity (PIPE). Recursion also said it plans to speed the development of its AI models for biology and chemistry, collaborating with Nvidia's cloud services to distribute to other biotech companies.
The move by Nvidia is a vote of confidence in Recursion that encouraged investors. Nvidia's stock was also up nearly 3%, but that may have had more to do with the jobs report that buoyed the market on Wednesday. In May, Recursion signed deals to purchase two other AI-enabled drug discovery companies, Cyclica and Valence, for $40 million and $47.5 million, respectively.
Source Fool.com
