SALT LAKE CITY - Recursion, a clinical stage TechBio company listed on NASDAQ:RXRX, introduced a new foundation model named OpenPhenom-S/16, now accessible in the Vertex (NASDAQ:VRTX) AI Model Garden on Google (NASDAQ:GOOGL) Cloud, designed to enhance drug discovery processes. The announcement made today highlighted the model's utility in processing microscopy data for life science applications.
OpenPhenom-S/16 is trained on over three million images from public datasets, including RxRx3 and JUMP-CP, using self-supervised learning techniques. Ben Mabey, Recursion's Chief Technology Officer, remarked on the model's ability to surpass traditional microscopy analysis methods, which often require extensive tuning and can be sensitive to minor assay condition changes.
This new foundation model aims to streamline the analysis of large-scale cell microscopy assays, crucial for identifying novel biological processes and potential drug candidates. Recursion has demonstrated OpenPhenom-S/16's effectiveness by showing its superior performance in recalling known biological relationships from the StringDB database, compared to established methods.
Shweta Maniar, Google Cloud's Global Director of Life Science Strategy & Solutions, expressed enthusiasm for the collaboration, noting the potential of OpenPhenom-S/16 to automate classification of cellular structures and extract insights from complex data, thus accelerating biomedicine advancements.
In addition to OpenPhenom-S/16, Recursion is releasing the RxRx3-core dataset, which includes labeled images for genetic knockouts and small-molecule perturbations, alongside image embeddings computed with OpenPhenom-S/16, providing a valuable resource for non-commercial research.
The company has also showcased proprietary models, Phenom-1 and Phenom-2, which are part of its commercial pipeline and partnership programs. These models have been featured at academic conferences, signaling Recursion's commitment to advancing the integration of technology and biology.
For access to OpenPhenom-S/16 on Google Cloud and more details on the RxRx3-core dataset, interested parties can visit the Recursion website. The company encourages signing up for updates on future data and model releases.
This news is based on a press release statement from Recursion Pharmaceuticals, Inc. The company, which is pioneering the use of machine learning in drug discovery, is headquartered in Salt Lake City and maintains a presence in several international locations.
In other recent news, Recursion Pharmaceuticals has made significant strides in the medical field. The U.S. Food and Drug Administration (FDA) has given the green light for the company's Phase 1/2 clinical trial of REC-1245, a potential treatment for solid tumors and lymphoma. This approval follows KeyBanc Capital Markets maintaining its Overweight rating and $12.00 price target for shares of Recursion. As part of the company's recent developments, it has also announced a $30 million deal with Genentech and plans for a $200 million public offering of Class A common stock. Additionally, the company has secured support from Evotec SE for its proposed acquisition of UK-based Exscientia plc, bringing total shareholder support for the transaction to approximately 53%. Changes in leadership have also been noted, with Dr. Robert Hershberg taking on the role of the new Chair of the Board, and Dr. Najat Khan stepping in as the new Chief R&D Officer and Chief Commercial Officer.
InvestingPro Insights
Recursion's innovative approach to drug discovery, as highlighted by the introduction of OpenPhenom-S/16, is reflected in its financial performance. According to InvestingPro data, the company's revenue growth has been impressive, with a 147.62% increase in quarterly revenue as of Q3 2024. This substantial growth aligns with Recursion's focus on advancing its technological capabilities in the life sciences sector.
Despite the promising technological developments, InvestingPro Tips reveal that Recursion is "quickly burning through cash" and is "not profitable over the last twelve months." This is not uncommon for clinical-stage biotech companies investing heavily in research and development. The company's operating income margin of -604.7% for the last twelve months ending Q3 2024 underscores the significant costs associated with its innovative pursuits.
On a positive note, an InvestingPro Tip indicates that Recursion "holds more cash than debt on its balance sheet," which could provide financial flexibility as it continues to develop its AI-driven drug discovery platform. Additionally, the company has seen a "strong return over the last three months," with a 30.02% price total return, suggesting investor optimism about Recursion's potential.
For investors interested in a deeper analysis, InvestingPro offers 11 additional tips for Recursion, providing a comprehensive view of the company's financial health and market position.
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