Recursion Pharmaceuticals, a Phase 2-ready biotech using AI to develop therapies for rare diseases, raised $436 million by offering 24.2 million shares at $18, the high end of the range of $16 to $18. The company offered 2.2 million shares than anticipated. It had previously planned to offer 18 million shares before increasing the offering to 22 million on Thursday. Existing investors Baillie Gifford, on behalf of Scottish Mortgage Investment Trust, and Mubadala Investment Company had indicated on up to $125 million worth of shares in the offering. At pricing, Recursion commands a fully diluted market value of $3.3 billion.
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 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 acted as lead managers on the deal.
