Core Insights - Recursion Pharmaceuticals (RXRX) has initiated dosing for the first patient in its early-stage study of REC-3565, aimed at treating relapsed or refractory B-cell lymphomas, utilizing its AI-driven Recursion OS platform [1][2] - The unique mechanism of REC-3565 is anticipated to reduce the risk of drug-drug interactions and hyperbilirubinemia, potentially allowing for safer dose escalation and improved clinical efficacy [2] - RXRX's shares have decreased by 41.3% year-to-date, contrasting with a 14.6% decline in the industry [3] Pipeline Development - The Phase I EXCELERIZE study will evaluate the safety, tolerability, pharmacokinetics, pharmacodynamics, and preliminary efficacy of REC-3565, structured in two parts: monotherapy and combination therapy [5] - REC-3565 is positioned to address the limited treatment options available for relapsed or refractory B-cell lymphomas, with the potential to enhance patient outcomes [6] Other Pipeline Candidates - RXRX is also developing REC-994 for cerebral cavernous malformation (CCM), affecting approximately 360,000 symptomatic individuals in the US and EU, with a broader global impact potentially exceeding one million patients [7] - The company has met primary safety endpoints in mid-stage studies for REC-994 and plans to consult with the FDA for further development pathways [8] - Other mid-stage candidates include REC-2282 (neurofibromatosis type II), REC-4881 (familial adenomatous polyposis), REC-3964 (recurrent Clostridioides difficile infection), and REC-1245 (biomarker-enriched solid tumors and lymphoma) [9] Collaborations - RXRX has established collaboration agreements with major pharmaceutical companies such as Roche, Bayer, Merck, and Sanofi to develop candidates for various oncology indications [10]

About Recursion Recursion (NASDAQ: RXRX) is a clinical stage TechBio company leading the space by decoding biology to radically improve lives. Enabling its mission is the Recursion OS, a platform built across diverse technologies that continuously generate one of the world's largest proprietary biological and chemical datasets. Recursion leverages sophisticated machine-learning algorithms to distill from its dataset a collection of trillions of searchable relationships across biology and chemistry unconstra ...

Core Insights - REC-3565 is a promising MALT1 inhibitor aimed at treating relapsed or refractory B-cell lymphomas, with the first patient dosed in the Phase 1 EXCELERIZE clinical study [1][2] - The drug is designed to minimize the risk of hyperbilirubinemia, a common side effect associated with other MALT1 inhibitors, enhancing its safety profile [1][3] - The EXCELERIZE study will evaluate the safety, tolerability, pharmacokinetics, pharmacodynamics, and preliminary efficacy of REC-3565 in two parts, focusing on both monotherapy and combination therapies [2][3] Company Overview - Recursion is a clinical stage TechBio company that utilizes AI-driven approaches to enhance drug discovery, operating one of the largest proprietary biological and chemical datasets [4] - The company is headquartered in Salt Lake City and is a founding member of BioHive, a collective for the Utah life sciences industry [5] Market Potential - Approximately 41,000 relapsed and/or refractory patients with chronic lymphocytic leukemia (CLL) and B-cell lymphomas in the U.S. and EU5 are eligible for treatment annually, indicating a significant market opportunity for REC-3565 [3]

Recursion (NASDAQ: RXRX) is a clinical stage TechBio company leading the space by decoding biology to radically improve lives. Enabling its mission is the Recursion OS, a platform built across diverse technologies that continuously generate one of the world's largest proprietary biological and chemical datasets. Recursion leverages sophisticated machine-learning algorithms to distill from its dataset a collection of trillions of searchable relationships across biology and chemistry unconstrained by human bi ...

A bad combination compounding for biotech So not only were these stocks slammed by the risk-off mentality in the markets ahead of tariffs coming on April 2, but a key resignation at the Federal Drug Administration (FDA) over the weekend raised questions about the speed and willingness of the agency to approve new drug technologies going forward. The double whammy sent these stocks down much more than the market today. Key FDA regulator Marks abruptly leaves Over the weekend, Dr. Peter Marks, who headed the ...

Company Performance - Recursion Pharmaceuticals (RXRX) closed at $6.48, down 1.52% from the previous trading session, underperforming the S&P 500 which lost 0.22% [1] - The stock has decreased by 39.47% over the past month, significantly lagging behind the Medical sector's loss of 0.63% and the S&P 500's loss of 7.48% [1] Upcoming Financial Results - The upcoming EPS for Recursion Pharmaceuticals is projected at -$0.44, indicating a 12.82% decline compared to the same quarter last year [2] - Revenue is expected to be $20.15 million, reflecting a 46.12% increase from the equivalent quarter last year [2] Full-Year Estimates - Zacks Consensus Estimates forecast earnings of -$1.41 per share and revenue of $88.55 million for the full year, representing year-over-year changes of +16.57% and +50.5%, respectively [3] Analyst Estimates - Recent changes to analyst estimates for Recursion Pharmaceuticals indicate a positive outlook on the company's business operations and profit generation capabilities [4] - The Zacks Rank system, which reflects these estimate changes, provides a rating system that can help investors make informed decisions [5] Zacks Rank and Industry Performance - Recursion Pharmaceuticals currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate having increased by 0.18% over the past month [6] - The Medical - Drugs industry, part of the Medical sector, has a Zacks Industry Rank of 85, placing it in the top 34% of over 250 industries [7]

Core Viewpoint - Recursion Pharma (RXRX) has experienced a significant stock decline of 37.1% over the past month, underperforming compared to the industry and the S&P 500, which saw a decline of only 1.4% [1][2]. Group 1: Stock Performance and Market Conditions - The stock is currently trading below its 50-day and 200-day moving averages, indicating a bearish trend [1]. - The decline in RXRX's stock price is attributed to macroeconomic conditions and company-specific challenges, including skepticism regarding new U.S. government policies affecting the medical market [4]. - The company's reliance on collaboration revenues introduces financial uncertainty, as disruptions in partnerships could jeopardize future payments [4]. Group 2: Pipeline and Development Challenges - Investors are concerned about the company's pipeline potential, as investigational candidates are still in early development stages, with no products expected to reach the market for at least three to four years [5]. - The regulatory environment has become more challenging, making it difficult for pipeline candidates to gain approval, which could lead to significant disappointments for the company [5]. - RXRX faces intense competition from biotech firms and tech-driven drug discovery companies, which may hinder its ability to maintain a competitive edge [6]. Group 3: Strengths and Opportunities - Despite challenges, RXRX has solid fundamentals and the potential of its AI-driven drug discovery platform, Recursion OS, which could lead to significant returns in the future [7]. - The company aims to revolutionize drug development by leveraging AI to identify promising candidates, potentially reducing research costs and improving efficiency [8][9]. - RXRX is developing its lead candidate, REC-994, for treating cerebral cavernous malformation (CCM), which represents a significant market opportunity [10]. Group 4: Financial Metrics and Valuation - RXRX is trading at a premium valuation compared to the industry, with a price/book value ratio of 2.62, higher than the industry average of 1.25 [13]. - Loss estimates for 2025 have narrowed from $1.42 to $1.41 per share, and for 2026, from $1.35 to $1.25 [15]. - The consensus estimate trend shows a slight improvement in loss estimates over the past 60 days, indicating a potential stabilization in financial outlook [16]. Group 5: Strategic Collaborations - RXRX has ongoing collaborations with major pharmaceutical companies like Roche, Bayer, Merck, and Sanofi, focusing on developing candidates for various oncology indications [12]. - The successful development and approval of pipeline candidates would validate RXRX's AI platform and enhance shareholder value [19].

Dr. Bumpus brings deep experience in scientific innovation and regulatory strategy, while Elaine Sun adds extensive leadership in life sciences finance and corporate strategy.Salt Lake City, UT, March 18, 2025 (GLOBE NEWSWIRE) -- Recursion (NASDAQ: RXRX), a leading clinical stage TechBio company decoding biology to radically improve lives, today announced that Namandjé Bumpus, Ph.D, and Elaine Sun have been appointed to Recursion’s Board of Directors, effective as of March 15th.“I am delighted to welcome El ...

Shares of Recursion Pharmaceuticals (RXRX -6.22%) were sinking 8.2% lower as of 10:57 a.m. ET on Monday. The clinical-stage biotech company, which is a pioneer in using artificial intelligence (AI) in drug discovery, didn't announce any news that would cause its stock to fall, though.Part of the reason Recursion's shares tumbled is that the overall stock market has retreated as investors worried that the Trump administration's tariffs could cause an economic recession. However, the stock was also likely neg ...

Core Insights - The artificial intelligence (AI) industry is experiencing significant growth, with expectations for continued sales increases in the coming years, attracting investor interest in companies positioned to benefit from AI [1] Company Overview - Recursion Pharmaceuticals is an AI-focused biotech company that has underperformed in the market over the past year but has the potential for substantial returns if its ambitions are realized [2] - The drug development process is lengthy, costly, and risky, often taking over 10 years and becoming more expensive over time, a trend referred to as Eroom's Law [2][4] Business Model and Technology - Recursion aims to reduce the drug development timeline by utilizing an AI-powered operating system that tests clinical compounds against a vast library of human genes to predict effectiveness against diseases [4] - The company reportedly spends about $10 million before submitting an Investigational New Drug (IND) Application, significantly lower than the industry average of over $25 million [4] Market Potential - If Recursion can maintain its technological lead and successfully launch breakthrough medicines, it stands to gain not only from its therapies but also from licensing its operating system to other drug developers, which could yield higher profit margins [5] Challenges and Competition - Recursion has not yet launched any medicines, which poses a risk to its stock performance, as success depends on the commercial viability of its therapies [7] - Competition exists from other companies, such as Novo Nordisk, which is developing an AI supercomputer for healthcare research, potentially undermining Recursion's licensing strategy [8] Pipeline and Partnerships - Recursion has a robust pipeline with several candidates in phase 2 studies, some of which have shown promising results [9] - The company has established partnerships with major pharmaceutical firms like Roche, Bayer, Merck, and Sanofi, indicating industry validation of its approach and reducing funding risks [10] Investment Considerations - While Recursion Pharmaceuticals presents a high-risk investment, there is optimism surrounding its potential to revolutionize drug development, making it a candidate for investors willing to accept volatility [11]