Recursion Pharmaceuticals shares surge on AI model release

Published 06/06/2025, 18:16
© Reuters.

Investing.com -- Recursion Pharmaceuticals Inc (NASDAQ:RXRX) stock soared 19.8% following the announcement of the open-source release of Boltz-2, a biomolecular foundation model developed in collaboration with MIT researchers. The model is designed to significantly enhance the accuracy and speed of drug discovery processes.

Boltz-2, developed by MIT’s Computer Science and Artificial Intelligence Lab (CSAIL) and Jameel Clinic in partnership with Recursion, is touted as a game-changer in the drug development industry. It outperforms existing models, such as AlphaFold3 and Boltz-1, by providing best-in-class accuracy in modeling complex structures and binding affinities of molecules. This capability is critical in the early stages of drug discovery, where selecting the right molecules can determine the success or failure of R&D programs.

The new AI model boasts several advantages over traditional methods, including near-FEP accuracy, leading benchmark performance, and advanced joint modeling that predicts binding affinity and protein dynamics simultaneously. It is also over 1,000 times faster and less computationally expensive than the industry-standard free energy perturbation method, making large-scale virtual screening more feasible.

Recursion’s Chief R&D Officer, Najat Khan, emphasized the significance of Boltz-2’s ability to triage compounds effectively, allowing R&D teams to concentrate resources on the most promising candidates. The collaboration between academic innovation and industry application is seen as a pivotal step in advancing drug discovery and improving patient care.

The open-source nature of Boltz-2, including its training code, under an MIT license, is expected to facilitate widespread adoption and adaptation by scientists for various molecular types, further accelerating the pace of discovery in the field.

Investors have responded positively to the news, recognizing the potential impact of Boltz-2 on Recursion’s drug development capabilities and its implications for the pharmaceutical industry at large. The stock’s significant movement reflects the market’s optimism about the company’s future prospects in leveraging AI to streamline and enhance the drug discovery process.

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

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