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American Focus > Blog > Economy > Recursion Pharmaceuticals Acquires Full Rights to REV102, Potential Oral Therapy for Rare Bone Disorder Hypophosphatasia
Economy

Recursion Pharmaceuticals Acquires Full Rights to REV102, Potential Oral Therapy for Rare Bone Disorder Hypophosphatasia

Last updated: July 21, 2025 11:20 pm
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Recursion Pharmaceuticals Acquires Full Rights to REV102, Potential Oral Therapy for Rare Bone Disorder Hypophosphatasia
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Recursion Pharmaceuticals Inc. (NASDAQ:RXRX) has made headlines as one of the best small cap AI stocks to buy according to analysts. The company recently entered into a definitive agreement with Rallybio Corporation (NASDAQ:RLYB) to acquire full rights to REV102, an ENPP1 inhibitor currently in preclinical development for the treatment of hypophosphatasia/HPP, a rare inherited disorder affecting bone and tooth mineralization.

Under the terms of the agreement, Rallybio will receive up to $25 million in total consideration, including an upfront equity payment of $7.5 million and near-term milestone payments. REV102 is the lead candidate from the joint venture between Rallybio and Recursion focused on discovering and developing novel, orally available small-molecule inhibitors of ENPP1 for HPP patients. The program entered IND-enabling studies in early 2025, signaling significant progress in its development.

Rallybio will also be entitled to low single-digit royalties on all future net sales of REV102 by Recursion, with potential for additional payments if Recursion decides to sell the program to a third party. This strategic move further solidifies Recursion’s position in the biotechnology industry as a key player in decoding biology and chemistry through innovative technological integration.

In addition to its collaboration with Rallybio, Recursion Pharmaceuticals Inc. is known for its unique approach to drug discovery, utilizing advancements in biology, chemistry, automation, data science, and engineering. This multidisciplinary approach has enabled Recursion to industrialize drug discovery processes and drive innovation in the field.

On the other hand, Rallybio Corporation is a clinical-stage biotechnology company focused on developing and commercializing life-transforming therapies for patients with severe and rare diseases. The company’s partnership with Recursion highlights its commitment to advancing treatments for underserved patient populations and addressing unmet medical needs.

See also  Trump administration halts $2.2bn in Harvard funds after it defied pressure

While the potential of RXRX as an investment is evident, some analysts believe that other AI stocks may offer greater upside potential with less downside risk. Investors seeking undervalued AI stocks with significant growth prospects may want to explore alternative options that align with their investment goals and risk tolerance.

In conclusion, the acquisition of REV102 by Recursion Pharmaceuticals Inc. represents a significant milestone in the development of potential therapies for rare bone disorders. The collaboration between Recursion and Rallybio underscores the importance of strategic partnerships in advancing medical research and addressing unmet medical needs. As the biotechnology industry continues to evolve, companies like Recursion and Rallybio are well-positioned to drive innovation and make a positive impact on patient outcomes.

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TAGGED:AcquiresboneDisorderFullHypophosphatasiaOralPharmaceuticalspotentialRareRecursionREV102RightsTherapy
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