Michael Secora, Chief Financial Officer of Recursion Pharmaceuticals Inc. (NASDAQ:RXRX), recently sold a significant portion of the company's Class A common stock. On November 12 and 13, Secora sold a total of 30,000 shares, with the transactions valued at approximately $229,504. The shares were sold at prices ranging from $7.6419 to $7.6584 per share.
In addition to the sales, Secora exercised stock options on both days, acquiring a total of 78,750 shares at a price of $2.22 per share, amounting to a total value of $174,825. These transactions were conducted under a 10b5-1 trading plan, a pre-established trading strategy that allows insiders to sell a predetermined number of shares at a predetermined time.
Following these transactions, Secora's direct ownership in Recursion Pharmaceuticals stands at 1,499,631 shares. The company, based in Salt Lake City, operates in the life sciences sector, focusing on biological products.
In other recent news, Recursion Pharmaceuticals received overwhelming stockholder approval for the acquisition of Exscientia plc. The biopharmaceutical company also launched a new model, OpenPhenom-S/16, aimed at enhancing drug discovery processes. This model, trained on over three million images, is now accessible in the Vertex (NASDAQ:VRTX) AI Model Garden on Google (NASDAQ:GOOGL) Cloud. Recursion has also secured FDA clearance for a Phase 1/2 clinical trial of REC-1245, a potential treatment for solid tumors and lymphoma.
KeyBanc Capital Markets maintained its Overweight rating for Recursion following the FDA approval. Additionally, Recursion announced a $30 million deal with Genentech and plans for a $200 million public offering of Class A common stock. The company has also seen changes in leadership, with Dr. Robert Hershberg appointed as the new Chair of the Board, and Dr. Najat Khan stepping in as the new Chief R&D Officer and Chief Commercial Officer. These are some of the recent developments at Recursion as it continues to make strides in the medical field.
InvestingPro Insights
Recent insider transactions at Recursion Pharmaceuticals Inc. (NASDAQ:RXRX) provide an interesting backdrop to the company's financial position. According to InvestingPro data, RXRX has a market capitalization of $1.98 billion, reflecting its current valuation in the biotech sector. The company's revenue growth is noteworthy, with a 147.62% increase in the most recent quarter, indicating strong momentum in its operations.
However, investors should be aware of some key financial metrics. InvestingPro Tips highlight that RXRX is quickly burning through cash and is not profitable over the last twelve months. This aligns with the company's negative gross profit margin of -403.03% and operating income margin of -604.7% for the last twelve months as of Q3 2023. These figures underscore the capital-intensive nature of biotech research and development.
On a positive note, InvestingPro Tips reveal that RXRX holds more cash than debt on its balance sheet, and its liquid assets exceed short-term obligations. This financial cushion may provide some reassurance to investors concerned about the company's cash burn rate.
For those interested in a deeper analysis, InvestingPro offers 5 additional tips for RXRX, which could provide further insights into the company's financial health and prospects.
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