Recursion gains FDA nod to study cancer drug

Following an over 6% loss in the previous session, Recursion Pharmaceuticals (NASDAQ:RXRX) shares gained in the premarket trading on Wednesday after AI-focused biotech announced that the U.S. FDA greenlighted a clinical trial for its tumor candidate REC-1245.

Announcing the regulatory clearance of its investigational new drug (IND) application, the biotech, which counts Nvidia (NVDA) among its investors, said it would start a Phase 1/2 trial in Q4 2024 for REC-1245.

The study is designed to evaluate REC-1245 as a single agent in certain cancer patients, including those with solid tumors and lymphoma.

The experimental therapy, also identified as an RBM39 degrader, is expected to initially target an addressable market comprising more than 100K patients in the U.S. and five major European counties, known as EU5.

“REC-1245 is a prime example of using an expansive AI-enabled platform for drug discovery,” said Chris Gibson, co-founder and CEO.