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Salt Lake City-based Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) has secured an irrevocable commitment from Evotec SE, a significant shareholder of Exscientia plc, to support Recursion's proposed acquisition of the UK-based company. The commitment, disclosed in a recent SEC filing, brings the total shareholder support for the transaction to approximately 53%.
Recursion, specializing in biological products, announced on Monday that Evotec SE, which controls about 11% of Exscientia's share capital, has signed an irrevocable undertaking to vote in favor of the acquisition. This commitment complements the previously obtained support from shareholders representing roughly 42% of Exscientia's shares, as reported in Recursion's 8-K filing on August 8, 2024.
The transaction agreement, entered into on August 8, 2024, outlines the terms for Recursion's acquisition of Exscientia through a scheme of arrangement under the UK Companies Act 2006. The deal is contingent on the approval of both Recursion's stockholders and Exscientia's shareholders.
Recursion and Exscientia urge investors and security holders to read the forthcoming proxy statement, once available, as it will contain vital information about the proposed acquisition. The statement will be accessible on the SEC's website and through direct contact with each company's investor relations department.
In other recent news, Recursion Pharmaceuticals has been making significant strides in its operations. The company recently announced a $30 million deal with Genentech, which will provide a substantial influx of capital and reflect the progress of Recursion's collaborative efforts in neuroscience. In addition, the company has been the focus of recent analyst coverage. Jefferies initiated coverage on Recursion Pharmaceuticals, issuing a Hold rating due to the company's current valuation, despite acknowledging its potential in the AI-driven drug discovery space.
Recursion Pharmaceuticals has also announced plans for a public offering of $200 million worth of Class A common stock, led by Goldman Sachs & Co (NYSE:GS). LLC and J.P. Morgan, though the completion of this offering remains subject to market conditions. In terms of leadership, the company has seen significant changes. Dr. Robert Hershberg, a veteran in the biopharmaceutical field, has been appointed as the new Chair of the Board, and Dr. Najat Khan, former Chief Data Science Officer and Global Head of Strategy and Portfolio at Johnson & Johnson (NYSE:JNJ)'s Innovative Medicine R&D, has joined the company as its new Chief R&D Officer and Chief Commercial Officer.
Finally, KeyBanc has reiterated its Overweight rating on Recursion Pharmaceuticals, maintaining a $16.00 price target for the company's shares. These recent developments reflect the ongoing efforts of Recursion Pharmaceuticals to expand its drug discovery technology and lead in the emerging TechBio space.
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