Back to top

Image: Bigstock

Bayer Collaborates With Recursion for Fibrotic Diseases

Read MoreHide Full Article

Bayer Aktiengesellschaft (BAYRY - Free Report) entered into a strategic collaboration agreement with Recursion Pharmaceuticals, Inc., a digital biology company industrializing drug discovery for the treatment of fibrotic diseases.

Bayer plans to leverage Recursion’s drug discovery platform, combining artificial intelligence (AI) along with the potential small-molecule treatments of the former for fibrotic diseases of the lung, kidney, heart and more.

According to Bayer, the collaboration with Recursion will enable the former to discover small molecule drug candidates targeting novel biology for the treatment of fibrotic diseases and the portfolio will complement its expertise in cardiovascular research with digital technologies.

Leaps by Bayer, the impact investment arm of Bayer AG, is leading Recursion’s Series D financing with an investment of $50 million.

Shares of the company have lost 19.0% so far this year against the industry’s 0.5% growth.

Recursion’s purpose-built drug-discovery platform is based on a proprietary library of more thanhalf a billion images of human cells from more than 33 million experiments conducted in-house at Recursion and coupled with advanced data analytics based on machine learning.  As of date, Recursion has on-boarded more than750 cellular disease models to broadly interrogate diverse therapeutic areas.

Per the collaboration agreement, Bayer and Recursion may launch 10 or more research programs, with potential milestone payments of more than$100 million relatedto each. In addition, Bayer will have the option to exclusively license any novel therapeutics discovered. In addition to the $50 million equity investment, Recursion will receive an upfront payment of $30 million.

Zacks Rank &Stocks to Consider

Bayer currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the healthcare sector include Emergent Biosolutions Inc. (EBS - Free Report) , Bio Techne Corp (TECH - Free Report) and Alimera Sciences Inc. (ALIM - Free Report) . While Emergent sports a Zacks Rank #1 (Strong Buy), Alimera and Bio Techne carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Emergent’s earnings estimates have increased from $3.45 to $6.32 for 2020 and from $4.31 to $7.01 for 2021 over the past 60 days. Shares of the company have increased 92.7% year to date.

Bio Techne’s earnings estimates have increased from $5.33 to $5.58 for 2020 and from $6.41 to $6.45 for 2021 over the past 60 days. Shares of the company have increased 13.9% year to date.

Alimera’s loss per share estimates have narrowed from $2.33 to $1.31 for 2020 and from 63 cents to 52 cents for 2021 over the past 60 days. Shares of the company have decreased 24.1% year to date.



These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking. Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>