Recursion Pharmaceuticals, Inc. (RXRX)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Recursion Pharmaceuticals, Inc. (RXRX) trades at $3.96 with AI Score 11/100 (Grade F). Recursion Pharmaceuticals, Inc. is a clinical-stage biotechnology company leveraging technology to industrialize drug discovery. Market cap: $1.77B, Sector: Healthcare.
Price live · AI analysis from May 10, 2026RXRX stock analysis for 2026: Analysts have set a consensus price target of $7.00 for Recursion Pharmaceuticals, Inc., suggesting 76.7% upside from the current price of $3.96. The AI MoonshotScore is 11/100, indicating a strong bearish outlook. Key factors: analyst coverage, AI-driven quantitative scoring.
RXRX: 4/7 perspectives are bearish. Dominant signal: Ken Griffin bearish.
How is this calculated? →Recursion Pharmaceuticals, Inc. (RXRX) Healthcare & Pipeline Overview
Recursion Pharmaceuticals, Inc. is a clinical-stage biotechnology firm employing AI and automation to accelerate drug discovery across multiple therapeutic areas. Its unique approach integrates biology, chemistry, data science, and engineering to develop treatments for diseases with unmet medical needs, positioning it as an innovator in the biotechnology sector.
What Is the Investment Thesis for RXRX?
Recursion Pharmaceuticals presents a compelling investment thesis centered on its innovative approach to drug discovery. The company's integrated technology platform, which combines biology, chemistry, automation, and AI, has the potential to significantly accelerate the identification and development of new drug candidates. Key value drivers include the advancement of its clinical pipeline, particularly REC-994 in Phase IIa for cerebral cavernous malformation and REC-2282 for neurofibromatosis type 2. Growth catalysts include potential partnerships and collaborations, as well as positive clinical trial results. However, the company's negative profit margin of -844.5% and gross margin of -34.4% highlight the risks associated with its high research and development costs. Successful execution of its clinical programs and strategic collaborations are crucial for long-term value creation.
Based on FMP financials and quantitative analysis
RXRX Key Highlights
- Market capitalization of $1.77B, reflecting investor confidence in its technology-driven drug discovery approach.
- Operating with approximately 800 employees, indicating a substantial investment in talent and infrastructure for research and development.
- REC-994 is in Phase IIa clinical trial to treat cerebral cavernous malformation, representing a key milestone in its clinical pipeline.
- Collaborations with Bayer AG and Takeda Pharmaceutical Company Limited, enhancing its research and development capabilities and providing potential revenue streams.
- Negative profit margin of -844.5% and gross margin of -34.4%, highlighting the significant investment in research and development typical of clinical-stage biotechnology companies.
Who Are RXRX's Competitors?
RXRX is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| IBRX ImmunityBio, Inc. | $9.01 | -4.61% | $9.44B | — |
| COGT Cogent Biosciences, Inc. | $39.56 | +2.25% | $6.76B | 60 |
| BEAM Beam Therapeutics Inc. | $35.74 | +2.73% | $3.68B | — |
| SNDX Syndax Pharmaceuticals, Inc. | $22.11 | +1.33% | $1.96B | 79 |
| ANAB AnaptysBio, Inc. | $63.69 | +0.43% | $2.75B | 79 |
| ABVX Abivax S.A. | $145.38 | +0.51% | $9.53B | 76 |
| CGEN Compugen Ltd. | $2.37 | +3.73% | $223.62M | 76 |
| GLUE Monte Rosa Therapeutics, Inc. | $23.06 | -4.75% | $1.50B | 68 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are RXRX's Key Strengths?
- Innovative technology platform for drug discovery.
- Strong pipeline of clinical and preclinical programs.
- Strategic collaborations with leading pharmaceutical companies.
- Experienced management team with expertise in biotechnology and data science.
What Are RXRX's Weaknesses?
- High research and development costs.
- Negative profit and gross margins.
- Dependence on successful clinical trial outcomes.
- Limited commercialized products.
What Could Drive RXRX Stock Higher?
- Data readout from Phase IIa clinical trial of REC-994 for cerebral cavernous malformation.
- Initiation of Phase II clinical trial for REC-2282 in neurofibromatosis type 2.
- Expansion of strategic collaborations with pharmaceutical companies.
- Advancement of preclinical programs into clinical trials.
What Are the Key Risks for RXRX?
- Financial-distress signal — its Altman Z-Score of 0.13 sits in the distress zone (elevated bankruptcy risk).
- Negative return on equity (-54.3%) — the business is not currently generating profit on shareholder capital.
- Weak fundamentals — a Piotroski F-Score of 3/9 flags soft profitability, leverage or efficiency.
- Failure of clinical trials for key drug candidates.
- Regulatory delays in drug approvals.
- Competition from other biotechnology companies.
- High research and development costs impacting profitability.
What Are the Growth Opportunities for RXRX?
- Expansion of Clinical Pipeline: Recursion has a significant opportunity to expand its clinical pipeline by advancing its preclinical programs into clinical trials. The successful development of REC-3964 for Clostridium difficile colitis, REC-64917 for neural or systemic inflammation, and REC-65029 for HRD-negative ovarian cancer could significantly increase the company's value. The timeline for these programs depends on preclinical data and regulatory approvals, but successful advancement could lead to significant market opportunities in the next 3-5 years.
- Strategic Collaborations and Partnerships: Recursion can leverage strategic collaborations with pharmaceutical companies and academic institutions to accelerate drug discovery and development. Collaborations with Bayer AG and Takeda Pharmaceutical Company Limited demonstrate the potential for partnerships to provide funding, expertise, and access to new markets. Expanding these collaborations could drive growth and reduce financial risk. These partnerships can materialize within the next 1-2 years.
- Application of AI and Machine Learning: Recursion's core technology platform, which integrates AI and machine learning, provides a significant competitive advantage in drug discovery. The company can further enhance its platform by incorporating new data sources and algorithms, improving the accuracy and efficiency of its predictions. This ongoing development can lead to the identification of new drug candidates and therapeutic targets, driving long-term growth. This is an ongoing process with continuous improvements.
- Targeting Orphan Diseases: Recursion's focus on developing treatments for rare and orphan diseases presents a significant growth opportunity. The company's clinical programs targeting cerebral cavernous malformation and GM2 gangliosidosis address unmet medical needs in these areas. Orphan drug designations can provide regulatory advantages and market exclusivity, increasing the potential for commercial success. These programs are expected to yield results within the next 2-4 years.
- Geographic Expansion: Recursion has the opportunity to expand its operations and partnerships into new geographic markets. By establishing collaborations with research institutions and pharmaceutical companies in Europe and Asia, the company can access new talent, resources, and patient populations. This geographic expansion can drive growth and diversify its revenue streams. This expansion could begin within the next 2-3 years.
What Opportunities Does RXRX Have?
- Expansion of clinical pipeline into new therapeutic areas.
- Increased adoption of AI and machine learning in drug discovery.
- Strategic acquisitions of complementary technologies and companies.
- Geographic expansion into new markets.
What Threats Does RXRX Face?
- Competition from other biotechnology companies.
- Regulatory hurdles and delays in drug approvals.
- Failure of clinical trials.
- Changes in healthcare policy and reimbursement.
What Are RXRX's Competitive Advantages?
- Proprietary technology platform integrating AI and automation.
- Extensive database of biological and chemical data.
- Strong intellectual property portfolio protecting its drug candidates and technologies.
What Does RXRX Do?
Recursion Pharmaceuticals, Inc., founded in 2013 and headquartered in Salt Lake City, Utah, is a clinical-stage biotechnology company focused on decoding biology to revolutionize drug discovery. The company integrates technological innovations across biology, chemistry, automation, data science, and engineering to industrialize the drug discovery process. Recursion's approach aims to identify potential drug candidates more efficiently and effectively than traditional methods. The company's pipeline includes several clinical and preclinical programs targeting a range of diseases. Key clinical programs include REC-994, currently in Phase IIa clinical trial for treating cerebral cavernous malformation; REC-2282 for neurofibromatosis type 2; REC-4881 for familial adenomatous polyposis; and REC-3599, in Phase I clinical trial for GM2 gangliosidosis. Preclinical programs include REC-3964 for Clostridium difficile colitis, REC-64917 for neural or systemic inflammation, REC-65029 for HRD-negative ovarian cancer, REC-648918 to enhance anti-tumor immunity, REC-2029 for wnt-mutant hepatocellular carcinoma, REC-14221 for solid and hematological malignancies, and REC-64151 for immune checkpoint resistance in KRAS/STK11 mutant non-small cell lung cancer. Recursion has established collaborations with companies like Bayer AG and Takeda Pharmaceutical Company Limited, as well as academic institutions like the University of Utah Research Foundation and Ohio State Innovation Foundation, to expand its research and development capabilities.
What Products and Services Does RXRX Offer?
- Decodes biology using technology to discover new drugs.
- Integrates biology, chemistry, automation, data science, and engineering.
- Develops treatments for cerebral cavernous malformation (REC-994).
- Develops treatments for neurofibromatosis type 2 (REC-2282).
- Develops treatments for familial adenomatous polyposis (REC-4881).
- Develops treatments for GM2 gangliosidosis (REC-3599).
How Does RXRX Make Money?
- Develops drug candidates through internal research and development.
- Partners with pharmaceutical companies for collaborative research and funding.
- Out-licenses drug candidates to other companies for further development and commercialization.
What Industry Does RXRX Operate In?
Recursion Pharmaceuticals operates within the biotechnology industry, a sector characterized by high growth potential and substantial investment in research and development. The industry is driven by the increasing demand for innovative therapies and advancements in technology. Recursion's focus on AI and automation positions it within a growing segment of the biotechnology market, where companies are leveraging technology to improve drug discovery efficiency. The competitive landscape includes companies like ImmunityBio, Inc. (IBRX), Cogent Biosciences, Inc. (COGT), and Beam Therapeutics Inc. (BEAM), each pursuing novel approaches to drug development.
Who Are RXRX's Key Customers?
- Patients suffering from diseases with unmet medical needs.
- Pharmaceutical companies seeking novel drug candidates.
- Research institutions collaborating on drug discovery projects.
FY2026 estForward Outlook
Wall Street analysts project Recursion Pharmaceuticals, Inc. revenue of about $61.3M for fiscal 2026, with EPS near $-0.92. The estimate reflects 6 contributing analysts.
F-Score 3/9Financial Health
Recursion Pharmaceuticals, Inc.'s Piotroski F-Score is 3/9, a 9-point checklist of profitability, leverage and efficiency — flagging fundamental weakness worth scrutiny. Its Altman Z-Score of 0.13 places it in the distress zone, a signal of elevated financial risk.
ROE -54%Key Financial Metrics
Return on equity for Recursion Pharmaceuticals, Inc. stands at -54.3%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -41.8%, showing how much profit it generates from its asset base. Its free cash flow yield is -19.2%, a gauge of the cash the business throws off relative to its market value. A current ratio of 5.47 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -27.9%, the inverse of the P/E and a quick read on earnings relative to price.
Recursion Pharmaceuticals, Inc. (RXRX) Valuation Context
Valued at $1.77B, RXRX is classified as a small-cap stock. Relative to its peer group, RXRX's quantitative score of 11/100 is below the peer average of 73/100.
Company Profile
Recursion Pharmaceuticals, Inc. operates in the Biotechnology industry within the Healthcare sector. It is headquartered in Salt Lake City, US. The company is led by CEO Najat Khan. RXRX has traded publicly since 2021.
RXRX Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Recent insider buying suggests confidence in the company's future prospects, indicating that key stakeholders believe in its growth potential.
- Community sentiment has shifted positively, with discussions highlighting the promising pipeline of drug candidates that could address unmet medical needs.
- Analysts are increasingly optimistic about Recursion's innovative approach to drug discovery, leveraging AI and machine learning, which is resonating well with investors.
- Recent collaborations with major pharmaceutical companies have bolstered market perception, showcasing the company's credibility and potential for future partnerships.
Bear Case
- Concerns about the competitive landscape in biotech are rising, with many players vying for similar market opportunities, potentially impacting Recursion's market share.
- Recent social media discussions have revealed skepticism regarding the timeline for clinical trial results, which could delay revenue generation.
- The company has faced criticism over its cash burn rate, leading some investors to question its financial sustainability in the long run.
- Market perception remains cautious due to broader economic uncertainties affecting the biotech sector, which could dampen investor enthusiasm.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
RXRX Latest News
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Anthropic Is Going All In on Drug Discovery Just as Pharma Stops Talking About AI
benzinga · Jul 1, 2026
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Recursion Pharmaceuticals (RXRX) Up 16.2% Since Last Earnings Report: Can It Continue?
zacks.com · Jun 5, 2026
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Recursion (RXRX) Climbs 9.5% Ahead of Next Week’s Business Updates
Yahoo! Finance: RXRX News · Jun 5, 2026
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Why Recursion Pharmaceuticals (RXRX) Is Up 9.5% After AI Pipeline Progress And Stronger-Than-Expected Q1 Results
Yahoo! Finance: RXRX News · Jun 4, 2026
RXRX Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for RXRX.
Price Targets
Consensus target: $7.00
RXRX MoonshotScore
What does this score mean?
The MoonshotScore rates RXRX's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Latest News
Anthropic Is Going All In on Drug Discovery Just as Pharma Stops Talking About AI
Recursion Pharmaceuticals (RXRX) Up 16.2% Since Last Earnings Report: Can It Continue?
Recursion (RXRX) Climbs 9.5% Ahead of Next Week’s Business Updates
Why Recursion Pharmaceuticals (RXRX) Is Up 9.5% After AI Pipeline Progress And Stronger-Than-Expected Q1 Results
Latest Recursion Pharmaceuticals, Inc. Analysis
Leadership: Najat Khan
Chief Executive Officer
Najat Khan brings extensive experience in the pharmaceutical and healthcare industries to her role as CEO of Recursion Pharmaceuticals. Prior to joining Recursion, she held leadership positions at major pharmaceutical companies, where she oversaw drug development programs and strategic initiatives. Her background includes a strong focus on innovation and technology in healthcare. She is known for her expertise in driving growth and fostering collaborative partnerships within the industry.
Track Record: Under Najat Khan's leadership, Recursion Pharmaceuticals has continued to advance its clinical pipeline and expand its collaborations with key industry players. She has overseen the progression of REC-994 into Phase IIa clinical trials and the expansion of the company's AI-driven drug discovery platform. Her strategic decisions have focused on leveraging technology to accelerate drug development and improve patient outcomes.
Common Questions About RXRX (Healthcare)
What does Recursion Pharmaceuticals, Inc. do?
Recursion Pharmaceuticals, Inc. is a clinical-stage biotechnology company that leverages its integrated technology platform to accelerate drug discovery. The company combines biology, chemistry, automation, data science, and engineering to identify potential drug candidates more efficiently. Recursion's approach aims to address diseases with unmet medical needs by decoding complex biological processes and developing targeted therapies. Its pipeline includes clinical and preclinical programs targeting a range of diseases, including cerebral cavernous malformation, neurofibromatosis type 2, and GM2 gangliosidosis.
What do analysts say about RXRX stock?
Analyst coverage of RXRX stock reflects a cautiously optimistic outlook, recognizing the company's innovative approach to drug discovery but also acknowledging the inherent risks associated with clinical-stage biotechnology companies. Key valuation metrics include market capitalization and potential revenue from future drug sales. Growth considerations focus on the successful advancement of its clinical pipeline and the expansion of its strategic collaborations. Analyst consensus typically reflects a range of price targets, reflecting the uncertainty surrounding clinical trial outcomes and regulatory approvals. No buy or sell recommendations are made in this summary.
What are the main risks for RXRX?
The main risks for Recursion Pharmaceuticals, Inc. include the potential failure of clinical trials for its key drug candidates, regulatory delays in obtaining drug approvals, and competition from other biotechnology companies. The company's high research and development costs also pose a financial risk, impacting its profitability and requiring ongoing funding. Additionally, changes in healthcare policy and reimbursement could affect the commercial viability of its products. These factors highlight the challenges and uncertainties inherent in the biotechnology industry.
What is Recursion Pharmaceuticals, Inc.'s drug pipeline status?
Recursion Pharmaceuticals, Inc.'s drug pipeline includes several clinical and preclinical programs. REC-994 is in Phase IIa clinical trial for treating cerebral cavernous malformation, REC-2282 is in development for neurofibromatosis type 2, REC-4881 targets familial adenomatous polyposis, and REC-3599 is in Phase I clinical trial for GM2 gangliosidosis. Preclinical programs include treatments for Clostridium difficile colitis, neural or systemic inflammation, HRD-negative ovarian cancer, and other conditions. Upcoming catalysts include data readouts from clinical trials and the advancement of preclinical programs into clinical stages. These developments are crucial for the company's growth and value creation.
What are the key growth opportunities for RXRX in healthcare?
Recursion Pharmaceuticals, Inc. has several key growth opportunities in the healthcare sector. These include expanding its clinical pipeline into new therapeutic areas, leveraging its AI and machine learning platform to accelerate drug discovery, forming strategic collaborations with pharmaceutical companies and academic institutions, and targeting orphan diseases with unmet medical needs. Geographic expansion into new markets also presents a significant opportunity. By capitalizing on these growth drivers, Recursion can enhance its competitive position and drive long-term value creation in the biotechnology industry.
What are the key factors to evaluate for RXRX?
Recursion Pharmaceuticals, Inc. (RXRX) holds an AI score of 11/100 (low). Analysts target $7.00 (+77%). Not financial advice.
How frequently does RXRX data refresh on this page?
RXRX prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven RXRX's recent stock price performance?
Recursion Pharmaceuticals, Inc. (RXRX) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Innovative technology platform for drug discovery. See the News tab for the latest drivers. Past performance does not predict future results.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Information is based on publicly available sources and may be subject to change.
- Clinical trial outcomes are inherently uncertain and can impact the company's prospects.