Thread by @Biotech2k1

Looking at $RXRX:

An updated look at Recursion.

1/ Management

I have only been in Recursion for only a few months. So far, I would say that Chris Gibson seems like a solid CEO. It will take more time to fully know how well he will navigate the clinical and commercial aspects of the busines, but so far he has done well.

2/ Science

This company uses robots to do millions of experiments per week and record all the data into their super computer. Combining that data with AI and Machine learning, they can discovery drugs.

3/ The first programs they are developing look at known chemical entities and possible new indications while their discovery programs take the data generated by the labs and use it to develop completely new drugs with new indications.

4/ Potential

I think there is a lot of potential in their 3 phase 2 programs. They have multiple early stage and discovery programs in progress. I could easily see their phase 2 programs earning well over $1 billion in potential revenues.

5/ They have 2 major partners with Genentec and Bayer. Both of these program have multiple potential indications with each having milestone and royalties. There could be upward of $14 billion in just milestones from these partners.

6/ Valuation

This company is very cheap at just $1.17 billion market cap. They have over $500 million in cash and burned $187 million in 2021. That gives them enough cash for about 2 years depending on the expenses of the phase 2 trials.