Recursion Raises $150 Million in Private Placement, Axes GM2 Program
October 25, 2022
Recursion, which is using AI and other technology to accelerate drug discovery, said it raised $150 million in a private placement of common stock at $9.80 a share.
The pricing represents a 7 percent discount to the volume weighted average share price of Recursion’s Class A common stock over the five trading days ended on October 24, 2022.
Separately, in a filing with the U.S. Securities and Exchange Commission, the company said it is halting working on its program for the rare, lysosomal storage disorder GM2 gangliosidosis, also known as Tay-Sachs disease, to focus on programs in liver and ovarian cancer, and other cancer candidates it believes has a greater chance of reaching patients in the near term. The company said it will make efforts to work with GM2 and related patient foundations to transfer the relevant scientific knowledge.
The Swedish investment firm Kinnevik led the private placement with a $75 million investment, which included participation of both new and existing investors.
Recursion said it will use the proceeds for general corporate purposes, which may include strategic investments to advance existing clinical and preclinical programs.
“This investment shows conviction in our approach as a leader within technology-enabled drug discovery across our pipeline, partnerships, and massive relatable datasets that ultimately enables us to create a more efficient path to new and better medicines,” said Christopher Gibson, co-founder and CEO of Recursion.
Author: Rare Daily Staff
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