Recursion Pharmaceuticals director sells $71,717 in stock

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) has reported a recent transaction involving a significant sale of shares by a company director. Blake Borgeson, who serves as a director of the biotechnology firm, sold a total of 11,447 shares of Class A common stock. The transaction, which took place on September 3, 2024, was executed at a weighted average sale price of $6.2652, resulting in a total value of $71,717.

The shares were sold in multiple trades with prices ranging from $5.96 to $6.70 per share. Post-transaction, Borgeson's holdings in the company have been adjusted to a total of 7,121,322 shares of Class A common stock, signifying a direct ownership stake.

It's worth noting that the sale by Borgeson was conducted in accordance with a Rule 10b5-1 trading plan, which he had adopted on August 18, 2023. This plan allows company insiders to establish pre-planned transactions at a time when they are not in possession of any material non-public information. The implementation of such a plan provides a defense against claims of insider trading.

For those interested in the specifics of the transaction, Borgeson has agreed to provide full information regarding the number of shares sold at each separate price upon request by the Securities and Exchange Commission, the issuer, or any security holder of the issuer.

The sale represents a routine disclosure by Recursion Pharmaceuticals, which is headquartered in Salt Lake City, Utah, and specializes in biological products. The company's commitment to transparency is evident in its timely filing of such transactions, allowing investors to stay informed about the financial dealings of its directors and other insiders.

In other recent news, Recursion Pharmaceuticals has disclosed a series of developments. The company has announced the completion of a Phase 2 trial for REC-994, a drug candidate for Cerebral Cavernous Malformation (CCM). The trial met its primary safety endpoint and showed promising trends in MRI-based efficacy measures. However, no significant improvements were observed in patient or physician-reported outcomes.

Analyst firms, including Needham, KeyBanc, TD Cowen, and Jefferies, have maintained their ratings on the company, with Needham reducing its price target to $11 from $16 and Jefferies to $6. The revised targets reflect an increased perception of development risk for REC-994, despite the drug's safety profile.

Recursion Pharmaceuticals has also announced a $30 million deal with Genentech and plans for a public offering of $200 million worth of Class A common stock, led by Goldman Sachs & Co. LLC and J.P. Morgan. The company has further secured a commitment from Evotec SE to support its proposed acquisition of UK-based Exscientia plc, bringing total shareholder support for the transaction to approximately 53%.

Lastly, Recursion Pharmaceuticals has seen changes in leadership, with Dr. Robert Hershberg appointed as the new Chair of the Board, and Dr. Najat Khan joining the company as its new Chief R&D Officer and Chief Commercial Officer. These developments underscore Recursion Pharmaceuticals' ongoing efforts to advance its internal pipeline and expand its operations.

InvestingPro Insights

As investors digest the news of Blake Borgeson's recent stock sale, it's crucial to consider the broader financial context of Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX). According to InvestingPro data, the company's market capitalization stands at $1.73 billion, reflecting its position within the biotechnology industry. Despite recent challenges, analysts tracking RXRX have revised their earnings estimates upwards for the upcoming period, suggesting a potential shift in expectations.

An InvestingPro Tip highlights that Recursion Pharmaceuticals holds more cash than debt on its balance sheet, which could provide financial flexibility and stability in the face of market volatility. Additionally, the company's liquid assets exceed its short-term obligations, further underscoring its ability to meet immediate financial needs.

However, it's important to note that the company's stock has experienced significant declines over various timeframes, with a 6-month price total return of -48.78% and a year-to-date return of -38.13%. This performance may influence investor sentiment and decision-making. For those considering RXRX as an investment, the current price represents 39.2% of its 52-week high, potentially offering an entry point for value-seeking investors.

For a more in-depth analysis and additional InvestingPro Tips, interested parties can visit https://www.investing.com/pro/RXRX. Currently, there are 11 more tips available that could provide valuable insights into Recursion Pharmaceuticals' financial health and future prospects.

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