Recursion Pharmaceuticals (RXRX) saw a 24% drop in its stock price during the week ending May 9th, largely due to disappointing Q1 earnings and a strategic shift in its development pipeline. The company reported an earnings-per-share (EPS) loss of $0.50, slightly better than expected, but its revenue of $14.75 million fell short of forecasts.
Additionally, Recursion announced it would end research on a significant portion of its pipeline to cut costs, raising concerns among investors about its long-term growth potential. A survey also revealed that biotech leaders expect federal research cuts to make raising capital more difficult, further dampening investor sentiment.
Additional reading: What Are the Benefits of Ai-Focused Drug Discovery and Development?
