SCHEDULE 13G/A: RA Capital Management Reduces Stake in Recursion Pharmaceuticals to 2.0%

Sentiment:

Beneficial Ownership Update


RA Capital Management, along with Peter Kolchinsky, Rajeev Shah, and RA Capital Healthcare Fund, L.P., has filed an amendment to their Schedule 13G, disclosing a reduced beneficial ownership of 2.0% in Recursion Pharmaceuticals, Inc. as of December 31, 2024.

Worse than expectedThe filing indicates a reduction in beneficial ownership by RA Capital Management and its affiliates from a previous, likely higher, stake (which would have triggered the initial 13G filing) to 2.0% as of December 31, 2024. This reduction could be interpreted as a less favorable outlook or a strategic portfolio adjustment by a key institutional investor.

Summary

  • RA Capital Management, L.P., Peter Kolchinsky, Rajeev Shah, and RA Capital Healthcare Fund, L.P. (collectively, the "Reporting Persons") have filed an Amendment No. 1 to their Schedule 13G regarding their beneficial ownership of Class A Common Stock of Recursion Pharmaceuticals, Inc.
  • As of December 31, 2024, the Reporting Persons collectively beneficially own 7,725,096 shares of Class A Common Stock.
  • This aggregate amount represents 2.0% of the Issuer's Class A Common Stock outstanding.
  • The percentage is based on 383,723,505 shares of Class A Common Stock outstanding as of November 26, 2024, as reported in the Issuer's prospectus supplement dated December 17, 2024.
  • The Reporting Persons share voting and dispositive power over all 7,725,096 shares.
  • RA Capital Management, L.P. serves as the investment adviser for RA Capital Healthcare Fund, L.P., which directly holds the shares.
  • Peter Kolchinsky and Rajeev Shah are controlling persons of RA Capital Management GP, LLC, the general partner of RA Capital Management, L.P.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to the implied reduction in beneficial ownership by a significant institutional investor, which could signal a less favorable outlook on the company or a strategic portfolio reallocation.

Negatives

  • The filing indicates an implied reduction in beneficial ownership by a significant institutional investor (RA Capital Management, L.P. and affiliates) from a previous stake (which would have triggered the initial 13G filing, likely >5%) to 2.0% as of December 31, 2024.

Future Outlook

NA

Industry Context

This filing indicates a change in the investment position of a specialized healthcare fund, RA Capital Management, in Recursion Pharmaceuticals, a biotechnology company. Such adjustments by institutional investors can reflect evolving views on company prospects, sector trends, or portfolio rebalancing within the highly dynamic biotechnology and pharmaceutical industries.

Stakeholder Impact

  • Shareholders: Provides transparency regarding the ownership structure and changes in significant institutional holdings, which may influence investor sentiment and share price.

Key Dates

DateDescription
2024-11-26Date as of which the outstanding shares of Class A Common Stock (383,723,505 shares) were reported in the Issuer's prospectus supplement.
2024-12-17Date of the Issuer's prospectus supplement filed with the SEC, reporting outstanding shares.
2024-12-31Date of event which requires filing of this statement (beneficial ownership snapshot date).
2025-02-14Date of execution and delivery of the Joint Filing Agreement and signing date of the Schedule 13G/A.

Recommendation

hold

Keywords

Recursion Pharmaceuticals, RA Capital Management, Schedule 13G/A, Beneficial Ownership, Institutional Investor, Class A Common Stock, Healthcare Fund, Biotechnology, Pharmaceuticals

Disclaimer:The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.