U.S. biotech Recursion Pharmaceuticals has entered into a stock purchase agreement for the sale of an aggregate of approximately 15.3 million shares of its Class A common stock in a private placement.
It was led by Kinnevik AB, with participation by Baillie Gifford, Mubadala Investment Company, Laurion Capital Management, Invus, and Platinum Asset Management. The price per share of $9.80 reflects an approximate 7% discount to the volume weighted average share price of Recursion’s Class A common stock over the five trading days ended on October 24, 2022.
Gross proceeds of the private placement are expected to be approximately $150 million, led by Kinnevik with a $75 million investment, before deducting placement agent fees and other expenses payable by Recursion Pharmaceuticals.
Recursion Pharmaceuticals currently intends to use the net proceeds, together with existing cash and cash equivalents, for general corporate purposes, which may include strategic investments in advancing of existing clinical and preclinical programs.
These include its new clinical program in AXIN1/APC mutant cancers with an initial focus in hepatocellular carcinoma and ovarian cancer, for which a phase 2 trial is being planned. Also included are digital chemistry technologies, automated chemical microsynthesis technologies, industrialized validation and translation, and scientific and technical personnel as well as runway extension and other purposes.
Christopher Gibson, co-founder and chief executive officer of Recursion Pharmaceuticals, said: “This investment shows conviction in our approach as a leader within technology-enabled drug discovery across our pipeline, partnerships, and massive relatable datasets which ultimately enables us to create a more efficient path to new and better medicines.”
About Recursion Pharmaceuticals
Recursion Pharmaceuticals is a clinical-stage biotechnology company industrializing drug discovery.
Enabling its mission is the RecursionOS, a platform built across diverse technologies that continuously expands one of the world’s largest proprietary biological and chemical datasets.
Recursion leverages machine-learning algorithms to distill from its dataset a collection of trillions of searchable relationships across biology and chemistry.
Recursion Pharmaceuticals is headquartered in Salt Lake City, where it is a founding member of BioHive, the collective leading the life science industry in Utah. Recursion also has offices in Toronto, Montreal and the San Francisco Bay Area.