Recursion Pharmaceuticals merges with Exscientia to enhance drug discovery capabilities

Recursion Pharmaceuticals, a biotech firm using artificial intelligence for drug discovery, has merged with Exscientia to strengthen its capabilities. The company is developing promising drug candidates, including REC-994 for a brain condition and REC-617 for advanced tumors. Despite its innovative approach, Recursion faces challenges. It currently generates limited revenue and is projected to incur losses in the coming years. Analysts expect negative earnings per share to worsen, raising concerns about its financial sustainability. The competitive landscape is also a factor, as major pharmaceutical companies are adopting AI in their research. While Recursion has potential, uncertainty around product approvals makes it a risky investment at this time.