Maksim Labkouski Exscientia ( NASDAQ: EXAI ), an AI-driven drug discovery firm, has agreed to be acquired by its larger peer, Recursion Pharmaceuticals ( NASDAQ: RXRX ), whose backers include chipmaker Nvidia ( NASDAQ: NVDA ), in an all-stock deal. Salt Lake City, Utah-based Recursion ( RXRX ) announced the agreement with its Q2 2024 financials on Thursday. Exscientia ( EXAI ) shares added ~8% in the premarket after the announcement while Recursion ( RXRX ) gained ~2%.
Under the agreement, Exscientia ( EXAI ) shareholders will receive 0.7729 shares of Recursion ( RXRX ) Class A common stock for each ordinary share they hold. Fractional shares will be paid in cash.
Once the transaction is completed by early 2024, Recursion ( RXRX ) shareholders will own approximately 74% of the combined company, while Exscientia ( EXAI ) shareholders will own the rest. Recursion ( RXRX ) will be the surviving entity led by co-founder and CEO Chris Gibson. Exscientia’s ( EXAI ) interim CEO David Hallett is expected to join as its chief scientific officer.
In July 2023, Recursion ( RXRX ) fueled a rally in AI-driven biopharma stocks after receiving a $50M investment from chipmaker Nvidia ( NVDA ). Its peers, Abcellera Biologics ( ABCL ), Absci Corporation ( ABSI ), Exscientia ( EXAI ), and Schrodinger ( SDGR ), also rallied in reaction. More on Exscientia, Nvidia, etc.
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