Recursion Pharmaceuticals (RXRX 3.40%) couldn't get over the hump of Hump Day. Following the release of the next-generation biotech's latest set of quarterly and annual results, investors traded out of its stock, to the point where the shares lost almost 17% of their value. That was a far steeper decline than the 0.2% slump of the bellwether S&P 500 index.
A big revenue miss for the fourth quarter
Recursion had been a fairly popular biotech stock, due to its significant use of artificial intelligence (AI) functions to discover new drugs. However, those results put quite a damper on sentiment. That's because the company earned only $10.9 million in revenue, while the consensus analyst estimate was a far higher $19.9 million.
On a slightly brighter note, Recursion beat on the bottom line, with a net loss just shy of $93 million, or $0.42 per share. Those prognosticators were collectively modeling a $0.46 per-share deficit.
The company also updated investors on its pipeline, which includes medications that target a range of afflictions. Although none have yet reached late-stage clinical testing, Recursion said that it anticipates being able to share data from Phase 2 trials for a pair of these drugs.
NASDAQ: RXRX
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A future where tech and biotech meet
Recursion didn't provide any guidance for future periods, which isn't unusual for a clinical-stage biotech with low levels of revenue. It did quote its co-founder and CEO Chris Gibson as saying that in 2023, it "continued to demonstrate how combining technology, biology, chemistry, and patient data can industrialize drug discovery, and we look forward to the milestones ahead of us in 2024."
