Recursion Pharmaceuticals, Inc. (RXRX) stock surged 7.93% in pre-market trading on Tuesday, following the release of its second-quarter 2025 financial results and updates on its clinical programs. The company reported Q2 revenue of $19.2 million, surpassing the estimate of $15.4 million, despite an earnings per share (EPS) of $(0.41) that missed the $(0.34) estimate.
Investors appeared to focus on Recursion's clinical progress, particularly the ongoing Phase 1/2 DAHLIA study for REC-1245, a potential first-in-class RBM39 degrader. The company announced that this study is currently enrolling patient populations with replication stress and DNA repair vulnerabilities. Additionally, Recursion has identified platinum-resistant ovarian cancer as the first combination cohort for its CDK7 inhibitor, REC-617, utilizing multi-omic and real-world patient data alongside causal AI modeling.
Further boosting investor confidence, Recursion reported a strong cash position of $533.8 million as of June 30, 2025. This substantial cash reserve is expected to extend the company's runway into the fourth quarter of 2027, providing ample resources for advancing its innovative drug discovery platform and clinical programs. Despite a significant net loss of $171.9 million for the quarter, the market seems to be focusing on Recursion's long-term potential and its strategic use of advanced models and platform capabilities to enhance both internal and partnered programs.
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