Recursion Funds Biotech Hit by NIH Cuts

Biotech startup Recursion is stepping up in a big way this week. The Salt Lake City firm launched a fund to help small companies slammed by NIH budget slashes. Forbes broke the news Thursday. The National Institutes of Health got trimmed by 15 percent this year. That is $7 billion less for research. Recursion aims to toss a lifeline to firms facing layoffs and stalled projects. CEO Chris Gibson says it is about keeping innovation alive when government cash dries up fast now.

The NIH cuts hit hard and wide. Over 30000 grants fuel labs nationwide yearly. This year 4500 got axed. Startups in Boston and San Diego felt it most. Recursion’s fund starts at $50 million. They plan to back 10 to 15 outfits with seed cash. Think gene therapy and cancer drugs. Posts on X show biotech folks cheering this move. Gibson told Forbes he saw firms folding after DOGE slashed federal fluff. His crew wants to plug that gap with private dollars to keep breakthroughs rolling today.

Why this matters is simple. NIH funds prop up early-stage science. Without it small players die quick. Recursion knows that game. They went public in 2021 raising $436 million. Now they use AI to speed drug discovery. Their pipeline has five trials running. This fund is not charity though. They get equity in firms they save. It is a bet on winners. Posts on X call it smart capitalism. If it works Recursion grows while biotech stays afloat amid Washington’s budget mess now.

DOGE sparked this chaos big time. That is the Department of Government Efficiency under Trump. They cut NIH to curb spending. Elon Musk pushed it hard on X last fall. Said it was fat to trim. Biotech lost $1 billion in days when the axe fell. Startups laid off 1200 workers per reports. Recursion’s fund fights that tide. They target firms with solid ideas but no cash. Gibson says government should not be the only lifeline. Private sector can step up he argues starting today alright.

Not everyone loves this plan though. Some say $50 million is a drop in the bucket. NIH’s $40 billion budget dwarfs it. Critics on X call it a PR stunt. They want Uncle Sam back in the game. Others worry Recursion picks favorites. Big Pharma could snatch up winners later. Gibson shrugs that off. He told Forbes it is survival not favoritism. Firms like HelixNano and VaxThera applied already. If they thrive it proves private cash can fill holes illegal aliens and waste left behind some argue now.

The upside here is real. Biotech drives jobs and cures. NIH cuts threatened both. Recursion’s move could save 300 jobs short term. Long term it might spark drugs for Alzheimer’s or rare bugs. Posts on X bet on American grit over handouts. Conservatives nod at firms doing it themselves. DOGE fans say it shows why cuts work. If five startups bloom from this it is a win. Gibson aims to double the fund by 2026 if it flies. That could mean $100 million keeping labs humming soon enough today.

Risks linger though. Biotech is a gamble even with cash. Half these firms might flop anyway. Recursion needs sharp eyes to pick right. Posts on X ask if they spread too thin. NIH might rebound under new budgets too. Then this fund looks like a side gig. Gibson says they are ready either way. They lean on AI to spot gold. By February 20 2025 applications are rolling in. If it tanks they lose cash. If it soars they lead a new wave. Either way it is a bold swing at a tough problem today.

This could ripple far and fast. Other firms might copy Recursion’s play. Biotech hubs could lean less on D.C. Posts on X dream of a private boom. NIH cuts woke folks up some say. Gibson told Forbes he wants cures not excuses. By summer we might see winners emerge. If a startup cures something big it is jackpot. For now this fund is a lifeline in a storm. It bets on brains over bureaucracy. By 2025’s end we will know if it paid off or if government cash still rules the roost in biotech land today.