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Recursion Pharmaceuticals’ stock soared 121% on Wednesday after receiving investment from Nvidia.
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Nvidia said it will invest $50 million in the company as it works to use AI for drug discovery.
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Recursion’s surge added more than $1 billion to its market valuation on Wednesday.
Shares of Recursion Pharmaceuticals soared as much as 121% on Wednesday after it said Nvidia had invested $50 million in the biotech company.
Recursion, which uses artificial intelligence to help speed up the drug discovery process, said Nvidia’s investment will accelerate its work developing AI-powered drugs.
The two companies will collaborate on software for the biotech industry, hoping to create treatments for patients more quickly for a wide variety of ailments and diseases.
Recursion said it will leverage Nvidia’s cloud services to develop its AI-based drug discovery models. Earlier this year, Nvidia announced the launch of BioNeMo, an AI drug discovery platform targeting the biotech industry.
“With our powerful data set and NVIDIA’s accelerated computational capabilities, we intend to create groundbreaking basic models in biology and chemistry at a scale unprecedented in the biological space,” said the CEO of Recursion, Chris Gibson, in a press release.
Recursion has a library of over 3 trillion searchable gene and compound relationships, which will serve as the foundation for the company’s drug discovery program.
Nvidia’s investment was executed as a private investment in public capital, so terms of the deal were not disclosed.
Recursion shared its outlook for 2023 with Insider earlier this year, which included an update on the four drugs currently in development for rare diseases, as well as details on a web app it recently launched called MolRec. .
Shares of Recursion hit a high of $14.99 in Wednesday’s trading session before paring its gains to around 80%. The stock has added more than $1 billion to its market valuation. The recursion went public in April 2021 and reached a post-IPO high of $42.81. Since then, it has dropped 72%.
Read the original article on Business Insider