Recursion Pharmaceuticals (NASDAQ:RXRX) is one of the high-flying stocks gaining focus in today’s market. Indeed, shares of RXRX stock are rocketing more than 10% higher today on some rather intriguing catalysts.
Yesterday, the company made a big announcement at the J.P. Morgan Healthcare Conference. Specifically, the company unveiled its so-called Large Language Model-Orchestrated Workflow Engine (LOWE), which it intends to use to allow scientists to “perform complex drug discovery tasks using a natural language interface.” Given the interest around everything related to artificial intelligence (AI), this news has understandably created quite the buzz around RXRX.
Additionally, growth investor Cathie Wood continues to load up on shares of RXRX stock, leading to what appears to be some coattail-riding from momentum investors. Cathie Wood’s funds collectively bought more than 74,000 shares of the stock during yesterday’s session alone. That’s a testament to Wood’s belief in the fledgling company.
Let’s dive into what’s driving this big market move in Recursion Pharmaceuticals today.
RXRX Stock Surges on Key Catalysts
Recursion’s new AI assistant aimed at accelerating and improving the existing drug development process is certainly compelling. Indeed, this is one application of large language models that investors have been waiting for. And, given Recursion’s impressive data set built up over a decade, there’s bound to be some key insights generated using this technology.
This thesis appears to be the core driver behind Recursion stock’s move today — and something to keep an eye on. In the biotech world, being able to develop drugs in a more inexpensive and expedited fashion could lead to massive productivity and margin gains for companies using the tool. How the spoils will be split up is another question — and one with which the market will need to grapple. For now, though, the move has obviously been up and to the right for RXRX stock, for good reason.
Notably, the combination of biotech and AI exposure that Recursion provides is also going to drive more interest in the stock from the likes of Cathie Wood and similar-minded growth investors. If this technology pans out the way that many expect, there could be some massive upside ahead. However, again, we’ll have to see just how this technology impacts Recursion’s bottom line.
On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
