Why Recursion Pharamaceuticals Topped the Market Today
Key Points
The clinical-stage biotech might have a successful drug on its hands, if a relatively early-stage clinical trial is any indication.
Its REC-4881 did very well in the testing.
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Recursion Pharmaceuticals (NASDAQ: RXRX) was in the headlines on Monday, and for the right reason. One of the biotech company's investigational drugs did well in a clinical trial, and investors rewarded the company by trading its stock more than 2% higher on the news.
A very encouraging trial
Before market open, Recursion divulged that its REC-4881 demonstrated notable efficacy in a phase 1b/2 trial. The drug, which treats a disorder called familial adenomatous polyposis (FAP) in which polyps develop within the body, was found to reduce the total polyp burden in most of the trial's 12 participants.
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All told, 75% of those administered the drug experienced such reductions. The median reduction was by 43%.
In its press release touting the drug's performance, Recursion said it validated the company's artificial intelligence (AI)-assisted drug discovery platform.
The company wrote that one of Recursion OS's findings inspired it to evaluate REC-4881 for FAP. It quoted CEO and co-founder Chris Gibson as saying that "This is a powerful example of how even the earliest versions of the Recursion OS can uncover therapeutic opportunities in diseases with no approved pharmacotherapy options."
2 big reasons to be cheerful
This is essentially a double win for Recursion -- an advancement in the development of a pipeline drug and an indication that its discovery system is effective. Although the clinical trial was a relatively early stage one, REC-4881's performance is encouraging on both fronts.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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