Recursion Pharmaceuticals, a Phase 2-ready biotech using AI to develop therapies for rare diseases, raised the proposed deal size for its upcoming IPO on Thursday.
The Salt Lake City, UT-based company now plans to raise $374 million by offering 22 million shares at a price range of $16 to $18. The company had previously filed to offer 18 million shares at the same range. Insiders Baillie Gifford and Mubadala Investment intend to purchase $125 million worth of shares in the offering. At the midpoint, Recursion Pharmaceuticals will raise 22% more in proceeds than previously anticipated.
Central to Recursion's mission is the Recursion Operating System, which combines an advanced infrastructure layer to generate proprietary biological and chemical datasets, and the Recursion Map, a suite of custom software, algorithms, and machine learning tools that the company uses to explore foundational biology and navigate to new biological insights. While the company is advancing 37 programs, its most advanced programs include one candidate targeting oncology and three targeting rare genetic disorders, all of which are expected to enter Phase 2 or 2/3 trials within the next four to five quarters.
Recursion Pharmaceuticals was founded in 2013 and booked $4 million in sales for the 12 months ended December 31, 2020. It plans to list on the Nasdaq under the symbol RXRX. Goldman Sachs, J.P. Morgan, BofA Securities, SVB Leerink, Allen & Company and KeyBanc Capital Markets are the joint bookrunners on the deal. It is expected to price during the week of April 12, 2021.
