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Recursion Pharmaceuticals: Wet Lab Meets Silicon, A Tale Of Two Bottom Lines

Recursion Pharmaceuticals (NASDAQ:RXRX) is carving out a vanguard role in TechBio by synergizing wet-lab biology with advanced computational tools. The firm's Q2 earnings revealed a dual narrative: impressive YoY revenue growth of 43% to $11.0M, buoyed by its Roche-Genentech (OTCQX:RHHBY) partnership, yet offset by escalating R&D expenses, pushing net losses to $76.7M. Meanwhile, a cash runway of about 19 months, bolstered by NVIDIA's (NVDA) recent $50M investment, indicates a robust but closely watched liquidity position. While Recursion's diverse clinical pipeline and alliances with industry heavyweights signify a multidimensional growth strategy, the increasing cash burn rate and looming commercialization challenges warrant investor vigilance.

seekingalpha.com     Sep 21, 2023