Chip giant NVIDIA has boosted the share price of a medical company with a private investment in public equity (PIPE) transaction.
• NVIDIA invests 50 million in Techbio company Recursion Pharmaceuticals
• Businesses work together
• Recursion stock up significantly
Recursion Pharmaceuticals stock jumped 78.17 percent to $12.08 on the US NASDAQ stock exchange on Wednesday. A plus can also be seen again in pre-market trading on Thursday – the share certificate is currently trading 0.91 percent higher at 12.19 US dollars.
NVIDIA steps in
The chip group NVIDIA is responsible for the significant jump in price. It invested 50 million US dollars in the Salt Lake City-based company as part of a private investment in public equity transaction (PIPE transaction). This was announced by Recursion Pharmaceuticals in a press release.
“Our collaboration with NVIDIA represents two world-class companies coming together to help solve one of the world’s toughest challenges – drug discovery,” said Dr. Chris Gibson, co-founder and CEO of Recursion quoted in press release. “With our powerful data set and NVIDIA’s accelerated computing capabilities, we intend to create breakthrough fundamental models in biology and chemistry on a scale never before seen in the biological field.”
AI as a drug discovery tool
Specifically, Recursion has plans to accelerate the development of its AI foundational models for biology and chemistry. As part of a collaboration with NVIDIA, they want to optimize the models and sell them to biotechnology companies via NVIDIA cloud services.
The focus of the collaboration is BioNeMo, NVIDIA’s AI-supported cloud service for drug research. Recursion plans to use its own “proprietary biological and chemical dataset spanning more than 23 petabytes and 3 trillion searchable gene and compound relationships” to train base models on the NVIDIA DGX™ Cloud for potential commercial license/release on BioNeMo accelerate.
Positive tones about the cooperation could be heard from NVIDIA. “Generative AI is a revolutionary tool for discovering new drugs and treatments,” said NVIDIA CEO Jensen Huang. “We are excited to be collaborating with Recursion’s world-class team, pioneering digital biology and chemistry with NVIDIA DGX and NVIDIA AI software, to power the development of the world’s largest biomolecular generative AI models and drug discovery for biotech and accelerate pharmaceutical companies.”
Analyst excited
Analysts positively evaluate the cooperation between NVIDIA and Recursion. Gil Blum, an analyst at Needham & Co., sees the injection of capital confirming Recursion in its leading position. “The collaboration gives Recursion access to the most powerful AI computing company in the world,” quoted Wallstreet-Online from a message from the expert to customers.
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