Recursion Pharmaceuticals (RXRX) Rallies 8.7% on Hypophosphatasia

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) is one of These 10 Stocks Are Making Big Moves.

Recursion Pharmaceuticals bounced back by 8.72 percent on Tuesday to close at $5.36 apiece following news that it acquired a $25-million interest in REV102—an ENPP1 inhibitor in preclinical development for the treatment of hypophosphatasia.

In a statement on Tuesday, Rallybio said it entered into a definitive agreement with Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) for the sale of its interest, under which it will be eligible to receive $7.5 million in upfront equity, a contingent equity payment of $12.5 million upon the initiation of additional preclinical studies, and a $5 million milestone payment in connection with the initiation of dosing in a Phase 1 clinical study.

Recursion Pharmaceuticals (RXRX) Rallies 8.7% on Hypophosphatasia

A pharmacist in a hospital pharmacy stands next to a row of various drug containers.

It will also be eligible to receive low single-digit royalties on all future net sales by Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) and likewise earn payments in the event of the latter’s sale of the REV102 program.

“By combining Rallybio’s expertise in HPP preclinical and translational research with Recursion’s integrated AI/experimental platform, we transformed this concept into the first potential oral disease-modifying treatment for HPP,” said Rallybio CEO Stephen Uden.

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Disclosure: None. This article is originally published at Insider Monkey.