Core Viewpoint - Recursion Pharmaceuticals (RXRX) is set to report its fourth-quarter 2024 results, with expected revenues of $28.73 billion and a loss per share of 36 cents [1]. Financial Performance - The Zacks Consensus Estimate for Recursion's 2024 loss per share has remained constant at $1.57, while the 2025 loss forecast has slightly narrowed from $1.43 to $1.42 [2]. - RXRX has had a mixed earnings performance over the last four quarters, beating estimates in two quarters and missing in the other two, with an average earnings surprise of 1.26% [5][6]. - In the last reported quarter, RXRX experienced a negative surprise of 3.03% [5]. Earnings Expectations - The current Earnings ESP for RXRX is -0.93%, and it holds a Zacks Rank of 3 (Hold), indicating that the odds of an earnings beat are not favorable [7][8]. Pipeline and Collaborations - Recursion does not have marketed products and relies on collaboration and grant revenues, with partnerships with major pharmaceutical companies like Roche, Bayer, Merck, and Sanofi [9]. - The company is developing its lead candidate, REC-994, for treating cerebral cavernous malformation, with plans to meet the FDA for further development [11]. - Other mid-stage candidates include REC-2282 for neurofibromatosis type II and REC-4881 for familial adenomatous polyposis, among others [12]. Research and Development - Research and development expenses are expected to increase due to investments in the proprietary candidate development platform and ongoing clinical activities [13]. Stock Performance - RXRX's stock has increased by 67.9% over the past three months, outperforming the industry and the S&P 500, which saw a decline of 6.5% [14]. - The company's shares trade at a price/book value ratio of 7.84, significantly higher than the industry average of 1.26 [16]. Investment Strategy - Recursion aims to revolutionize drug discovery through AI-powered models, potentially reducing costs and improving efficiency [20][21]. - The company faces competition from traditional biopharma giants and large technology firms investing in drug discovery technologies [22]. - RXRX's first-mover advantage in AI-driven drug discovery positions it as a leader, with a strong pipeline focused on Precision Oncology and Rare Diseases [23].

Core Viewpoint - Recursion Pharmaceuticals' stock surged by 15.8% due to Nvidia's decision to retain its shares in the company, which is seen as a vote of confidence despite Nvidia exiting other AI stocks [1][2][3]. Group 1: Nvidia's Influence - Nvidia disclosed its holdings, revealing it maintained its 7.7 million shares in Recursion Pharmaceuticals while selling off positions in other AI stocks [2]. - The decision by Nvidia to keep its stake in Recursion is interpreted positively by investors, suggesting confidence in Recursion's potential [3][4]. Group 2: Recursion's Position - Recursion Pharmaceuticals utilizes AI in its drug discovery process and has developed the largest supercomputer in the biopharmaceutical industry with Nvidia's assistance [3]. - Despite the positive sentiment, Recursion's experimental drugs are still in early testing stages, making it a riskier investment for conservative investors [5].

Company Performance - Recursion Pharmaceuticals (RXRX) closed at $8.50, reflecting a +1.92% change from the previous trading day's closing, outperforming the S&P 500 which gained 1.04% [1] - The stock has increased by 29.91% over the past month, leading the Medical sector's gain of 3.72% and the S&P 500's gain of 3.92% [1] Upcoming Earnings - The company is expected to report an EPS of -$0.36, which is a 10% improvement from the same quarter last year [2] - Revenue is forecasted to be $28.73 million, indicating a significant increase of 163.85% compared to the same quarter of the previous year [2] Analyst Estimates - Recent changes to analyst estimates for Recursion Pharmaceuticals reflect shifting business dynamics, with positive revisions indicating analyst optimism about the company's profitability [3] - The Zacks Consensus EPS estimate has shifted 1.07% downward over the past month, and the company currently holds a Zacks Rank of 3 (Hold) [5] Industry Context - The Medical - Drugs industry, part of the Medical sector, has a Zacks Industry Rank of 84, placing it in the top 34% of over 250 industries [6] - Strong individual industry groups, as measured by the Zacks Industry Rank, show that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [6]

Company Overview - Recursion Pharmaceuticals (RXRX) shares increased by 8.9% to $8.34 in the last trading session, with a notable trading volume, and have gained 21.2% over the past four weeks [1][2] - The company utilizes its proprietary AI-based drug discovery platform, Recursion OS, to develop innovative therapeutic candidates for oncology, rare diseases, and infectious diseases [2] Financial Performance - Recursion Pharmaceuticals is projected to report a quarterly loss of $0.36 per share, reflecting a year-over-year increase of 10%, while revenues are expected to reach $28.73 million, a significant rise of 163.9% compared to the same quarter last year [3] - The consensus EPS estimate for Recursion has remained stable over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] Industry Context - Recursion Pharmaceuticals is categorized under the Zacks Medical - Drugs industry, where another company, Bioventus (BVS), experienced a 3.8% decline to $10.27, despite a 20.4% return over the past month [4] - Bioventus has an unchanged consensus EPS estimate of $0.09 for its upcoming report, which represents a 28.6% increase from the previous year, and currently holds a Zacks Rank of 4 (Sell) [5]

Met primary endpoint of safety and tolerability in CCM patients with no treatment-related discontinuations or Grade 3 adverse eventsIn comparison to placebo, treatment with REC-994 400 mg showed promising signals in both MRI-based lesion volume reduction and functional outcome as measured by changes in the modified Rankin scale (mRS) scoreIn patients with cavernomas located in the brainstem, a subset of patients with significant unmet need, decreases in mean absolute total lesion volume and improvements in ...

Recursion Pharmaceuticals (RXRX) shares ended the last trading session 8.9% higher at $7.49. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 5% loss over the past four weeks.The sudden rise in the stock price was observed after President Donald Trump announced a $500 billion project to develop and expand AI infrastructure, at his inauguration event on Monday. Investors likely anticipate that Recursion, being a Tech ...

AI in Healthcare Market Growth - The Generative AI in Healthcare Market is projected to reach US$17.2 billion by 2032, growing at a CAGR of 37% [2] - The Smart Healthcare Market, including telemedicine, mHealth, smart pills, and AI, is expected to grow by US$125.7 billion through 2028 [2] Avant Technologies and Ainnova Partnership - Avant Technologies and Ainnova have secured an exclusive license for 4 advanced AI algorithms for early detection of cardiovascular risk, prediabetes and type 2 diabetes, fatty liver disease, and chronic kidney disease [3][4] - These algorithms, validated with data from over 2 million patients, will be integrated into Ainnova's VisionAI platform [3][4] - The partnership aims to introduce these solutions in Latin America and secure FDA clearance for the U.S. market by 2025 [5][6] Industry Developments - Recursion Pharmaceuticals reported positive initial data from a Phase 1/2 study of REC-617, a CDK7 inhibitor, showing durable partial responses in advanced solid tumors [9][10] - Teladoc Health launched AI-enabled Virtual Sitter capabilities, increasing inpatient team capacity by 25% [10][11] - Butterfly Network partnered with HeartFocus to launch an AI-powered education app for cardiac care training [11][12] - Absci Corporation announced progress in its AI-driven drug creation pipeline, including potential treatments for hair loss and other conditions [12][13] Healthcare Professionals' Perspective - 90% of healthcare professionals report a favorable view of AI, highlighting its potential to transform clinical trials and healthcare delivery [1]

In the latest trading session, Recursion Pharmaceuticals (RXRX) closed at $6.42, marking a +1.58% move from the previous day. This move lagged the S&P 500's daily gain of 1.83%. On the other hand, the Dow registered a gain of 1.65%, and the technology-centric Nasdaq increased by 2.45%.Shares of the biotechnology company witnessed a loss of 11.24% over the previous month, trailing the performance of the Medical sector with its loss of 3.48% and the S&P 500's loss of 3.31%.The upcoming earnings release of Rec ...

Shares of Recursion Pharmaceuticals (RXRX) have gained 4% over the past four weeks to close the last trading session at $7.26, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $9.29 indicates a potential upside of 28%.The average comprises seven short-term price targets ranging from a low of $6 to a high of $11, with a standard deviation of $1.70. While the lowest estimate indica ...

REC-3565 is a potential best-in-class MALT1 inhibitor for multiple hematology indications, designed to reduce the risk of hyperbilirubinemia, a common side effect of other MALT1 inhibitors REC-4539, a potential best-in-class LSD1 inhibitor, is the first designed to be reversible and CNS penetrant for small-cell lung cancer Salt Lake City, UT, Jan. 07, 2025 (GLOBE NEWSWIRE) -- Recursion (NASDAQ:RXRX), a leading clinical stage TechBio company decoding biology to industrialize drug discovery, announced tod ...