Recursion Pharmaceuticals misses Q4 estimates, shares dip

Published 28/02/2025, 16:58
Recursion Pharmaceuticals misses Q4 estimates, shares dip

SALT LAKE CITY - Recursion Pharmaceuticals , Inc. (NASDAQ:RXRX) reported fourth quarter results that fell short of analyst expectations, sending shares down 1.8% in after-hours trading.

The clinical-stage TechBio company posted a loss of $0.53 per share for Q4, wider than the $0.41 loss analysts had forecast. Revenue came in at $4.55 million, significantly below the consensus estimate of $13.4 million.

For the full year 2024, Recursion generated revenue of $58.8 million, up from $44.6 million in 2023. The increase was primarily driven by a $30 million payment from Roche and Genentech related to the completion of Recursion’s first neuroscience phenomap.

"In 2024, Recursion made a transformative leap with the largest TechBio merger in history, combining our pipeline, partnerships, people and platform to further accelerate the Recursion OS as the leading full-stack TechBio platform," said Chris Gibson, Ph.D., Co-Founder and CEO of Recursion.

The company highlighted promising early efficacy data for two clinical programs - REC-617 for solid tumors and REC-994 for cerebral cavernous malformations. It also initiated three new clinical studies across oncology, rare disease, and recurrent C. difficile infection.

Recursion ended the year with $603 million in cash and equivalents, compared to $401.4 million at the end of 2023. The company expects its cash runway to extend into 2027.

While the quarterly results missed expectations, Recursion emphasized its progress in advancing its AI-powered drug discovery platform and clinical pipeline. The modest stock decline suggests investors are taking a measured view of the company’s long-term potential despite the near-term earnings miss.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.