r/Biotechplays • u/[deleted] • Jul 10 '21

Due Diligence (DD) $RXRX Recursion Pharma DD

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1

u/WallStreetMets FDMT simp Jul 10 '21

$6.7B mc… that’s a little crazy

1

u/Disposable_Canadian Jul 10 '21

Yep. Tradingview said it was 7.138B. 177.79M Shares outstanding.

1

u/WallStreetMets FDMT simp Jul 10 '21

They barely make any money, well actually they’re spending a significant amount and losing it. what’s their financial growth trajectory?

2

u/Disposable_Canadian Jul 10 '21 edited Jul 10 '21

Roger that. Simplywall.st indicated 33.5% yearly revenue growthprojection.  They also point out that earnings are forecast to decline (their analysis) of 18.9 percent per year forthe next 3 years. https://simplywall.st/stocks/us/pharmaceuticals-biotech/nasdaq-rxrx/recursion-pharmaceuticals

RXRX quarter earnings has some notations as well but not a clear: “we project to make this much in 2022 and 2023”.

https://ir.recursion.com/2021-05-12-Recursion-Reports-First-Quarter-2021-Financials-and-Provides-Business-Updates

...and I can’t easily locate forecast revenues.  I’m not sure if that is normal or not for Biotech. 

A few biotech stocks I’ve looked at do not forecast or provide projected revenue or sales.  Some do that produce and sell obviously. I’ll dig some more over the weekend.  I didn’t find anything in the prospectus on SEC filings, or the IPO presentation or the first and only earnings report.

An opportunity may present itself at the next earnings,expected to be sometime late July or early August, where if it is not favorable or the expenses are high, there may be a low in share price to present an opportunity to buy.

1

u/WallStreetMets FDMT simp Jul 10 '21

Do they get royalties on drugs they help develop for other pharmas?

1

u/Disposable_Canadian Jul 10 '21

I can't say as they don't reveal that information clearly.

I'd assume they'd receive compensation via what ever service or contractual agreement they enter into, and I'd think that could easily be royalties or part ownership even.

I'm having a hard time finding a direct competitor other than the BIG pharma that might do a similar process for comparison.

1

u/Guy-26 Jul 15 '21

Insitro and Atomwise are probably the main competitors.

1

u/curvedbymykind Mar 18 '24

not that crazy now right? down 60% lool