Recursion Pharmaceuticals Jumps in Debut After $436 Million IPO
(Bloomberg) -- Recursion Pharmaceuticals Inc., which uses machine learning to hunt for new therapies, rose 74% in its trading debut after exceeding goals for its initial public offering to raise $436 million.
Salt Lake City-based Recursion’s shares closed Friday at $31.30, giving Recursion a market value of more than $5 billion. It sold about 24 million shares on Thursday for $18 each, after earlier marketing them for $16 to $18 and twice expanding the size of the share sale.
The clinical-stage biotechnology company reached a deal with Bayer AG in September to use AI to find new drugs for lung fibrosis and other fibrotic diseases. The deal included a $30 million upfront payment and $50 million in equity funding by Bayer’s investment arm.
An investment arm of Bayer led a $239 million funding round for Recursion in September, according to a statement at the time. The company’s investors include Baillie Gifford and Mubadala, among others.
The offering was led by Goldman Sachs Group Inc. and JPMorgan Chase & Co. The shares are trading on the Nasdaq Global Select Market under the symbol RXRX.
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