SALT LAKE CITY - Recursion, a clinical stage company specializing in drug discovery technology, has announced the appointment of Robert Hershberg, M.D., Ph.D., as the new Chair of the Board. Dr. Hershberg, who has been a board member since May 2020, will succeed Martin Chavez at the end of his term.
Dr. Hershberg brings over two decades of experience in the biopharmaceutical field, including his current roles as CEO, President, and Chair of the Board at HilleVax, Inc., and as a Venture Partner at Frazier Healthcare Partners. His previous tenure includes executive positions at Celgene (NASDAQ:CELG), which was acquired by Bristol-Myers Squibb (NYSE:BMY) in 2019, and as co-founder and CEO of VentiRx Pharmaceuticals.
Chris Gibson, CEO and Co-founder of Recursion, expressed enthusiasm for Dr. Hershberg's leadership and extended gratitude to Martin Chavez for his guidance during his tenure. Chavez reflected positively on his time as Chair, expressing confidence in Dr. Hershberg's ability to steer the company through upcoming clinical readouts.
Recursion operates at the intersection of technology and biology, using its Recursion OS platform to conduct extensive wet lab experiments and computational analyses. The company aims to lead the emerging TechBio space, a field that combines technology-driven approaches with traditional biopharmaceutical research to accelerate drug discovery.
The company, headquartered in Salt Lake City, is a key player in BioHive, Utah's life sciences industry collective, and maintains additional offices in Canada and the San Francisco Bay Area.
InvestingPro Insights
As Recursion (RXRX) welcomes Dr. Robert Hershberg as the new Chair of the Board, investors are closely monitoring the company's financial health and market performance. With a market capitalization of approximately $2.18 billion and a challenging financial landscape characterized by a negative P/E ratio of -5.6, Recursion's strategic direction under Dr. Hershberg's leadership will be pivotal.
InvestingPro data indicates Recursion's revenue for the last twelve months as of Q1 2024 stands at $46.23 million, with a quarterly revenue growth of 13.68%. Despite this growth, the company's gross profit margin remains in the negative at -34.5%, underscoring the challenges in achieving profitability.
An InvestingPro Tip highlights that Recursion holds more cash than debt on its balance sheet, which is a positive sign for financial stability. Additionally, the company's liquid assets exceed short-term obligations, providing some cushion in the short term. However, analysts have noted that Recursion is quickly burning through cash and does not expect the company to be profitable this year. This financial trajectory is reflected in the company's high revenue valuation multiple.
For investors looking to delve deeper into Recursion's financials and market potential, InvestingPro offers additional insights and metrics. Currently, there are 10 more InvestingPro Tips available for Recursion, which can be accessed through the dedicated InvestingPro page for the company. These tips could provide a more nuanced understanding of the company's financial health and future prospects.
Interested investors may take advantage of a special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription on InvestingPro. This offer could be particularly valuable for those seeking to make informed decisions based on comprehensive financial analysis and real-time data.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.