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Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX), a biotechnology firm specializing in biological products with a market capitalization of $2.04 billion, has filed with the SEC to register 3,498,393 shares of its Class A common stock. These shares are intended for resale and were issued to Tempus Labs, Inc. as part of the annual license fee agreement.
According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 4.35, though analysts note it's quickly burning through cash.
The registration, filed on Tuesday, is under Recursion's automatic shelf Registration Statement on Form S-3ASR, which was initially filed on May 10, 2022. This move comes as a follow-up to the Master Agreement between Recursion and Tempus, detailed in Recursion's previous Form 8-K filed on November 9, 2023.
The shares in question were issued to Tempus in lieu of payment for the 2024 annual license fee. The transaction was carried out under an exemption from registration provided by the Securities Act of 1933, as amended.
Legal counsel Wilson Sonsini Goodrich & Rosati, P.C. has provided an opinion on the legality of the Resale Shares, which is included in the SEC filing as Exhibit 5.1.
This registration allows Tempus to resell its shares in the open market, although the specific terms and timing of any such sales have not been disclosed. The filing is a routine financial transaction and does not necessarily indicate any immediate change in the business operations or ownership structure of Recursion.
Trading at $7.12, InvestingPro analysis suggests the stock is currently trading near its Fair Value, with revenue growing at 37.64% over the last twelve months. Discover 8 additional key financial insights and tips about RXRX with an InvestingPro subscription.
The information for this article is based on a press release statement and the recent SEC filing by Recursion Pharmaceuticals, Inc.
In other recent news, Recursion Pharmaceuticals has seen a series of significant developments. CFO Ben Taylor has transitioned to a role with the company's UK subsidiary, Exscientia AI Ltd., following Recursion's acquisition of Exscientia plc. Taylor's new compensation package includes a base salary of £400,000 annually, potential bonuses, and a pending equity grant valued at $5 million.
Recursion has also completed its acquisition of Exscientia, a move that has enhanced its drug discovery and development capabilities. This development has resulted in a robust pipeline of clinical and preclinical programs. KeyBanc Capital Markets has maintained its Overweight rating on Recursion, holding steady with a price target of $12.00.
In addition, Recursion has launched a new model, OpenPhenom-S/16, to enhance drug discovery processes. This model is now accessible in the Vertex (NASDAQ:VRTX) AI Model Garden on Google (NASDAQ:GOOGL) Cloud. Furthermore, the U.S. Food and Drug Administration has approved the company's Phase 1/2 clinical trial of REC-1245, a potential treatment for solid tumors and lymphoma.
Finally, Recursion has announced a $30 million deal with Genentech and plans for a $200 million public offering of Class A common stock. The company has also secured support from Evotec SE for its acquisition of Exscientia. Leadership changes have been noted, with Dr. Robert Hershberg as the new Chair of the Board, and Dr. Najat Khan as the new Chief R&D Officer and Chief Commercial Officer.
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