Bill Oxford
Recursion Pharmaceuticals (NASDAQ:RXRX) is a clinical-stage biotechnology company that gained fame in July 2023 when it benefited from a $50 million investment by NVIDIA (NASDAQ:NVDA). As a result, the market cap doubled to around $3.2 billion as shown below, but, after some ups and downs, the stock has since retrenched and is trading at less than $9.
This thesis aims to show that it is a buy at the current price because Recursion operates more as a TechBio than biotech. The difference goes beyond using advanced computing, as it is also about decoding biology through artificial intelligence while leveraging big quantities of data in a way that industrializes the very process of drug discovery.
To start with, I elaborate on the reasons why Nvidia may have invested in the stock.
Differentiating Recursion’s Approach as TechBio Instead of Biotech
First, even before the semiconductor giant stepped in,…
