Small Bio Stock Catapults 70% On Nvidia’s  Million Bet


Recursion Pharmaceuticals (RXRX) snagged a $50 million investment from Nvidia (NVDA) on Wednesday to work on drug development using artificial intelligence, and RXRX stock nearly doubled.




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In early trading on today’s stock market, Recursion shares skyrocketed 70.3% near 11.50. Before the stock market opened, RXRX stock had catapulted more than 130%. Nvidia stock rose 2.5% near 434.50.

Recursion has a searchable data set spanning biology and chemistry. The company says its algorithm can identify relationships between trillions of genes and compounds on targets “unconstrained by human bias.” With Nvidia’s investment, the company plans to accelerate development of an AI system for its data set.

“Our collaboration with Nvidia represents two best-in-class companies coming together to help solve one of the world’s most difficult challenges, drug discovery,” Recursion Chief Executive Chris Gibson said in a written statement.

In morning trades, RXRX stock hit its highest point since January 2022.

RXRX Stock: 3 Trillion Datapoints

Recursion hopes to “industrialize drug discovery” through its massive data set of 3 trillion searchable gene and compound relationships. Eventually, Recursion says, it could license/release its data set on Nvidia’s BioNeMo, a cloud service for generative AI in drug discovery.

“With our powerful data set and Nvidia’s accelerated computing capabilities, we intend to create groundbreaking foundation models in biology and chemistry at a scale unlike anything that has ever been released in the biological space,” said Recursion’s Gibson.

The move Wednesday morning sent RXRX stock above its 50-day and 200-day moving averages, MarketSmith.com shows. But shares are lowly rated, according to IBD Digital.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.

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