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This Biotech Stock Could Be the Best Investment of the Decade
RecursionRecursion(US:RXRX) The Motley Foolยท2025-03-07 09:55

Company Overview - Recursion Pharmaceuticals is a biotech company with a market cap of $3 billion and reported $58 million in revenue last year, while still incurring significant losses [3] - The company focuses on developing therapies for complex and expensive ailments, with candidates like REC-617 for solid tumors and REC-994 for cerebral cavernous malformation [4] Unique Selling Proposition - Recursion Pharmaceuticals utilizes its proprietary AI platform, Recursion OS, to design and pretest drugs, significantly reducing the time and cost associated with drug development [5][9] - The company is sharing access to Recursion OS with major pharmaceutical companies, creating substantial growth opportunities [6][7] Industry Context - The pharmaceutical industry is increasingly adopting AI solutions to mitigate the high costs and lengthy timelines of drug development, which can average between $1 billion and $2 billion and take about a decade [8] - The AI-powered drug discovery market is projected to grow at nearly 30% annually through 2032, indicating a strong demand for innovative solutions like Recursion OS [10][11] Financial Outlook - Analysts expect Recursion Pharmaceuticals to achieve a 75% increase in top-line growth this year, followed by over 37% growth next year, although profitability may not be reached for several years [12][13] - The current consensus one-year price target for Recursion's stock is $8.60 per share, representing a potential upside of more than 30% from its current price [14]