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Recursion Adds New Chemical Entity Targeting Fibrotic Diseases to Late Discovery Pipeline

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Recursion (RXRX) signs agreement with Bayer AG to in-license a potential first-in-class novel molecule emerging from fibrosis research collaboration. The compound has shown early data suggesting the potential to reverse disease-related fibrotic processes, addressing high unmet need for patients with fibrotic diseases.
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The in-licensing of a novel molecule by Recursion from Bayer AG signifies a strategic move in the pharmaceutical industry, especially in the context of fibrotic disease treatment. Fibrotic diseases, which lead to scarring and thickening of tissues, represent a therapeutic area with a substantial unmet need due to the complexity of the disease biology. The early data suggesting the molecule's potential to reverse disease-related fibrotic processes indicates a significant breakthrough. This could lead to a paradigm shift in treatment modalities, given that current therapies often only slow disease progression rather than reverse it.

From a medical research standpoint, the utilization of phenotypic screening to identify small molecules capable of reverting fibrocyte cells from a diseased to a healthy state showcases the innovative use of technology in drug discovery. This approach, combined with Recursion's proprietary Maps of Biology and Chemistry, underscores the company's ability to pinpoint novel targets that traditional methods may overlook. The potential impact on patient outcomes could be transformative, particularly if the compound demonstrates efficacy in later-stage trials and receives regulatory approval.

The announcement of Recursion's in-licensing agreement with Bayer for a novel fibrosis treatment could have significant financial implications for both companies. For Recursion, it represents an opportunity to expand its pipeline with a first-in-class candidate that addresses a market with high demand and limited supply. The success of this compound could lead to substantial revenue, given the size of the fibrotic disease market and the lack of effective treatments. Furthermore, the partnership with a major pharmaceutical company like Bayer may provide additional credibility to Recursion, potentially boosting investor confidence and positively impacting stock valuation in the long term.

However, investors should also consider the inherent risks involved in drug development, such as the possibility of unsuccessful clinical trials or regulatory challenges. It is crucial to monitor the progression of this molecule through the various stages of development and to evaluate the company's capability to navigate the complex regulatory landscape. The financial health of Recursion, including its cash burn rate and funding strategies to support the development of this compound, will also be critical factors in assessing the long-term financial impact.

The in-licensing of a novel molecule targeting fibrotic diseases places Recursion at a competitive advantage within the pharmaceutical market. Fibrosis-related conditions, including liver cirrhosis, pulmonary fibrosis and kidney fibrosis, affect millions globally, creating a substantial market opportunity. If the molecule in question progresses successfully through clinical development, it could capture a significant share of this market, particularly if it demonstrates superior efficacy or safety compared to existing treatments.

Market dynamics for fibrotic disease treatments are influenced by factors such as aging populations, increasing prevalence of conditions leading to fibrosis and the growing focus on personalized medicine. A novel treatment that can reverse fibrosis would meet a critical market need and could disrupt current treatment paradigms. It is also important to consider the potential for strategic partnerships, licensing deals and future M&A activity as Recursion advances this molecule, as these could shape the competitive landscape and alter market forecasts.

Potential First-in-Class Novel Molecule with Novel Target In-Licensed from Collaboration with Bayer

SALT LAKE CITY, Jan. 04, 2024 (GLOBE NEWSWIRE) -- Recursion (NASDAQ: RXRX), a leading clinical stage TechBio company decoding biology to industrialize drug discovery, today announced it has signed an agreement with Bayer AG to in-license a new chemical entity that emerged from the companies’ fibrosis research collaboration. The compound represents a novel approach to treating fibrotic diseases with compelling early data suggesting the potential to reverse disease-related fibrotic processes, including immuno-mesenchymal dysfunction.

“Since initiating our research collaboration with Bayer in 2020, we have worked diligently to apply the power of the Recursion OS to identify and advance potential candidates in challenging areas of disease biology,” said Chris Gibson, Ph.D., Co-founder and CEO of Recursion. “We are excited to bring this asset into our internal pipeline and accelerate the compelling science behind this program while our research collaboration with Bayer focuses on precision oncology.”

Recursion applied phenotypic screening of human cells to identify small molecules that reverse the phenotypic features of disease-state fibrocyte cells into those of healthy-state cells. Leveraging the power of Recursion’s Maps of Biology and Chemistry revealed a relationship between small molecule hits and a novel target that could impact fibrotic diseases. The most promising small molecule hits were confirmed as potent inhibitors of this novel target in validation experiments, and lead optimization studies are currently ongoing.

Fibrotic diseases are a significant cause of morbidity and mortality worldwide with high unmet need for patients. One of the biggest challenges in the treatment of fibrotic diseases is the underlying complex biology and the associated difficulty in discovering disease-modifying drug targets. Recursion’s technology is uniquely suited to accelerate discoveries in these and other complex areas of disease biology.

About Recursion
Recursion (NASDAQ: RXRX) is a clinical stage TechBio company leading the space by decoding biology to industrialize drug discovery. Enabling its mission is the Recursion OS, a platform built across diverse technologies that continuously expands one of the world’s largest proprietary biological and chemical datasets. Recursion leverages sophisticated machine-learning algorithms to distill from its dataset a collection of trillions of searchable relationships across biology and chemistry unconstrained by human bias. By commanding massive experimental scale — up to millions of wet lab experiments weekly — and massive computational scale — owning and operating one of the most powerful supercomputers in the world, Recursion is uniting technology, biology, and chemistry to advance the future of medicine.

Recursion is headquartered in Salt Lake City, where it is a founding member of BioHive, the Utah life sciences industry collective. Recursion also has offices in Toronto, Montréal and the San Francisco Bay Area. Learn more at www.Recursion.com, or connect on Twitter and LinkedIn.

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Forward-Looking Statements
This document contains information that includes or is based upon "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995, including, without limitation, those regarding early and late stage discovery, preclinical, and clinical programs; licenses and collaborations; prospective products and their potential future indications and market opportunities; Recursion OS and other technologies; business and financial plans and performance; and all other statements that are not historical facts. Forward-looking statements may or may not include identifying words such as “plan,” “will,” “expect,” “anticipate,” “intend,” “believe,” “potential,” “continue,” and similar terms. These statements are subject to known or unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statements, including but not limited to: challenges inherent in pharmaceutical research and development, including the timing and results of preclinical and clinical programs, where the risk of failure is high and failure can occur at any stage prior to or after regulatory approval due to lack of sufficient efficacy, safety considerations, or other factors; our ability to leverage and enhance our drug discovery platform; our ability to obtain financing for development activities and other corporate purposes; the success of our collaboration activities; our ability to obtain regulatory approval of, and ultimately commercialize, drug candidates; our ability to obtain, maintain, and enforce intellectual property protections; cyberattacks or other disruptions to our technology systems; our ability to attract, motivate, and retain key employees and manage our growth; inflation and other macroeconomic issues; and other risks and uncertainties such as those described under the heading “Risk Factors” in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K. All forward-looking statements are based on management’s current estimates, projections, and assumptions, and Recursion undertakes no obligation to correct or update any such statements, whether as a result of new information, future developments, or otherwise, except to the extent required by applicable law.


Recursion announced an agreement with Bayer AG to in-license a potential first-in-class novel molecule emerging from fibrosis research collaboration.

The ticker symbol for Recursion is RXRX.

The compound has shown early data suggesting the potential to reverse disease-related fibrotic processes, addressing high unmet need for patients with fibrotic diseases.

Recursion's technology is uniquely suited to accelerate discoveries in complex areas of disease biology.
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About RXRX

recursion pharmaceuticals has developed a powerful drug discovery platform involving millions of rapid, automated experiments and analysis to discover new therapeutics. our platform has resulted in the massive parallelization of drug discovery. we have deployed this platform in pursuit of drugs for the treatment of rare genetic diseases. we partner or out-license these leads to major pharmaceutical companies early in development. our horizontal business model focused on discovery accelerates our impact and reduces our costs by avoiding slow and costly in-house development, and allows us to spread risk across many new therapeutic opportunities.