Blackrock’s 30 Most Important AI Stocks

29. Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX)

Number of Hedge Fund Holders: 16

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) operates as a clinical-stage biotechnology company that engages in decoding biology by integrating technological innovations across biology, chemistry, automation, data science, and engineering to industrialize drug discovery. There are multiple factors highlighting the potential of this company as a strong investment candidate. Firstly, the report for the third quarter of 2024 showed great results, as the reported total revenue was $26.1 million compared to $10.5 million for the third quarter of 2023. The increase was due to revenue recognized from the partnership with Roche & Genentech and the $30 million acceptance fee for the completion of a neuroscience phenomap. Secondly, the collaboration of two leaders in the AI drug discovery space, Recursion and Exscientia, aims to advance the industrialization of drug discovery that would help them redefine the space by shrinking timelines and costs and identifying and optimizing lead candidates faster than traditional methods. Moreover, the company has launched OpenPhenom-S/16, a publicly available foundation model in Google Cloud’s Vertex AI Model Garden. This will enable Life Science companies to use OpenPhenom-S/16 on Google Cloud when building apps that require microscopy data to assess the effectiveness of drug treatments, analyze cultures, study tissues and ultimately accelerate drug discovery and for other uses, holding great investment potential.