Why Recursion Pharmaceuticals Stock Sank Today
Shares of Recursion Pharmaceuticals (NASDAQ: RXRX) sank 17.7% lower as of the market close on Wednesday. The decline came after the company provided its third-quarter update Wednesday morning.
Recursion reported revenue in the third quarter of $2.5 million, up 147% year over year but lower than the average analysts' estimate of $2.7 million. The company posted a net loss of $47.4 million, or $0.28 per share. This met the consensus estimate.
Did the biotech stock really fall so hard solely because of such a small revenue miss? No. Recursion's revenue comes primarily from collaborative agreements and is nearly immaterial at this point. Investors were perhaps more concerned that co-founder and CEO Chris Gibson plans to sell or transfer to philanthropic funds up to 4% of his stake in the company.
Source Fool.com
