2023-05-29 08:45:00 ET
On May 8, Recursion Pharmaceuticals (NASDAQ: RXRX) announced that it was going to buy a pair of AI-enabled drug discovery biotechs, Cyclica and Valence, for a total of $87.5 million -- paid in stock.
Management says that the moves will help the company use digital chemistry and machine learning to calculate promising targets for drug development, which -- if this is the first time you're hearing about Recursion -- has always been its entire shtick. The deal is expected to close before the end of the second quarter of this year.
But is Recursion's stock a smart investment, and do these purchases change anything? Let's find out.
For further details see:
Recursion Pharmaceuticals Is Going Big on AI. Here's Why It Could Be Worth Buying