For several high-profile growth stocks, share price performance in 2025 ended up being forgettable. These stocks didn't just underperform. They lost ground. However, if you can take a step back and look at the bigger picture, there are at least a couple of these cases where this weakness is likely only a temporary setback. Indeed, these pullbacks offer an opportunity for investors to get in front of a recovery in 2026. Where to invest $1,000 right now? Our analyst team just revealed what they believe are ...

We came across a bullish thesis on Recursion Pharmaceuticals, Inc. on r/stocks by  Antique-Reference585. In this article, we will summarize the bulls’ thesis on RXRX. Recursion Pharmaceuticals, Inc.'s share was trading at $4.67 as of January 16th. Morgan Stanley Lifted GE HealthCare Target to $80 in Late October, Citing Strong Orders and Backlog Wichy/Shutterstock.com Recursion Pharmaceuticals, Inc. operates as a clinical-stage biotechnology company, engages in the decoding biology and chemistry by inte ...

Financial Status - Recursion had $755 million in cash at the end of 2025, projecting runway through the end of 2027[18] - The company anticipates a cash burn of less than $390 million in 2026[39] Pipeline and Platform - Recursion has approximately 5 wholly-owned programs in clinical development and around 15 in discovery[17] - The company's platform has generated over $500 million in upfront and milestone payments[17] - Recursion's supercomputer holds ~65PB of data, including 40PB of proprietary data[45] Partnerships - Sanofi has achieved 4 milestones using AI-designed molecules[27] - Roche and Genentech have delivered 6 AI-powered biology maps[27] - Potential Roche and Genentech and Sanofi milestones per small molecule program is >$300M[17] Clinical Program (REC-4881) - In a study, 75% of evaluable patients with FAP responded to REC-4881 with a 43% median reduction in polyp burden at Week 13[68] - At Week 25, 82% of evaluable patients responded to REC-4881, with 73% achieving durable ≥30% reductions and a 53% median polyp burden reduction[71] - Approximately 87% of untreated FAP patients experienced an annual increase in polyp burden, averaging a 60% increase annually[57, 62]

Core Insights - Recursion, a clinical stage TechBio company, focuses on decoding biology to significantly enhance lives [1] - The CEO, Najat Khan, Ph.D., will present at the 44th Annual J.P. Morgan Healthcare Conference on January 13, 2026 [1] - The company will also participate in the 28th Annual Needham Growth Conference on January 16, 2026 [1] Company Overview - Recursion is headquartered in Salt Lake City and is a founding member of BioHive, a collective for the Utah life sciences industry [2] - The company has additional offices in Montréal, New York, London, and the Oxford area [2] - Recursion utilizes a platform called Recursion OS, which generates one of the largest proprietary biological and chemical datasets globally [1] - The company employs advanced machine-learning algorithms to identify trillions of relationships in biology and chemistry, free from human bias [1] - Recursion conducts millions of wet lab experiments weekly and operates one of the most powerful supercomputers in the world to advance medical research [1]

Core Insights - Recursion Pharmaceuticals is progressing towards commercializing a product through its drug discovery system, with a recent clinical trial showing positive results for its investigational drug REC-4881 [1][2]. Group 1: Clinical Trial Results - REC-4881 demonstrated notable efficacy in a phase 1b/2 trial, specifically targeting familial adenomatous polyposis (FAP), with 75% of participants experiencing a reduction in total polyp burden [2][4]. - The median reduction in polyp burden among participants was 43%, indicating significant therapeutic potential [4]. Group 2: Company Performance and Market Reaction - Following the positive trial results, Recursion's stock increased by over 2%, reflecting investor confidence in the company's prospects [1]. - The company’s artificial intelligence-assisted drug discovery platform was validated through the trial results, showcasing its effectiveness in identifying therapeutic opportunities [4][5]. Group 3: Financial Metrics - Recursion Pharmaceuticals has a market capitalization of $2 billion, with current stock trading around $4.82 [6]. - The stock has experienced a 52-week range between $3.79 and $12.36, indicating volatility in its market performance [6].

Recursion Pharmaceuticals (NasdaqGS:RXRX) Update Summary Company Overview - **Company**: Recursion Pharmaceuticals - **Focus**: Development of REC-4881 for Familial Adenomatous Polyposis (FAP) - **Key Personnel**: Najat Khan (Chief R&D and Commercial Officer, incoming CEO), Dr. Beth Bruckheimer (FAP clinical lead), Dr. David Mauro (Chief Medical Officer) Industry Context - **Disease**: Familial Adenomatous Polyposis (FAP) - **Patient Population**: Over 50,000 patients in the U.S. and EU5 affected by FAP - **Current Treatment Landscape**: No approved pharmacotherapies for FAP; patients undergo frequent surgeries and interventions Core Findings and Insights 1. **Unmet Need**: FAP is a progressive disease with no approved treatments, leading to severe interventions and surgeries, including the Whipple procedure [2][15][18] 2. **Mechanism of Action**: REC-4881 is a selective MEK1/2 inhibitor that targets the underlying biology of FAP by addressing the loss of APC gene function [3][20] 3. **Clinical Study Results**: - Phase 1b/2 TUPELO study shows that 75% of patients experienced a reduction in polyp burden by week 13, with a median reduction of 43% [25][31] - Durable effects observed, with 82% of patients maintaining a response at week 25, showing a median reduction of 53% [27][29][32] 4. **Safety Profile**: Consistent with MEK inhibitor class expectations; primarily grade 1-2 adverse events, with no grade 4-5 events reported [4][25][31] Additional Insights 1. **Real-World Evidence**: The ClinTECH platform analyzed over 1,000 FAP patients, revealing the relentless progression of polyp growth and the need for effective therapies [10][11][17] 2. **Regulatory Engagement**: Plans to engage with the FDA in the first half of 2026 to discuss a potential registrational pathway for REC-4881 [5][33] 3. **Partnerships and Financials**: Over $500 million generated from collaborations, indicating strong partnership momentum [7][8] Future Directions - **Expansion of Patient Population**: Broadening eligibility from patients over 55 to those over 18 years old [5][33] - **Dosing Optimization**: Exploring alternative dosing regimens to enhance the benefit-risk profile of REC-4881 [33] - **Long-term Goals**: Aim to provide a much-needed therapeutic option that can significantly improve the quality of life for FAP patients [15][33] Conclusion - REC-4881 represents a significant advancement in the treatment of FAP, with promising efficacy and safety data, addressing a critical unmet need in a patient population that currently lacks effective pharmacotherapy options [31][33]

Core Insights - Recursion announced positive Phase 1b/2 data from the TUPELO trial for REC-4881, an investigational allosteric MEK1/2 inhibitor targeting familial adenomatous polyposis (FAP) [1][3] Efficacy and Results - REC-4881 demonstrated a 43% median reduction in polyp burden after 12 weeks of treatment, with 75% of evaluable patients showing reductions [4][16] - At Week 25, 82% of evaluable patients maintained reductions in polyp burden, with a 53% median decrease from baseline [4][17] - The treatment showed a significant improvement in Spigelman stage, with 40% of patients achieving a ≥1-point improvement [4][16] Safety Profile - The safety profile of REC-4881 was consistent with MEK1/2 inhibitors, with 94.7% of patients reporting at least one treatment-related adverse event, primarily Grade 1 or 2 [19][24] - Grade 3 treatment-related adverse events occurred in 15.8% of patients, with no Grade ≥4 events reported [19][24] Mechanism and Discovery - REC-4881 was identified through an AI-driven phenotypic screening approach, highlighting MEK1/2 inhibition as a therapeutic strategy for FAP [2][8] - The drug represents a precision-medicine approach targeting the causal biology of FAP, a disease with no approved medical therapies [5][6] Future Plans - The company plans to engage with the FDA in the first half of 2026 to define a potential registration pathway and expand the patient population eligibility from ≥55 to ≥18 years old [4][29]

Core Insights - Recursion, a clinical stage TechBio company, will present new clinical data from the ongoing TUPELO Phase 1b/2 trial of REC-4881 for Familial Adenomatous Polyposis (FAP) during a webinar on December 8, 2025 [1][2] - The company utilizes a platform called Recursion OS, which integrates various technologies to create one of the largest proprietary biological and chemical datasets, enabling advanced drug discovery [3] Company Overview - Recursion is headquartered in Salt Lake City and is a founding member of BioHive, a collective for the Utah life sciences industry, with additional offices in Montréal, New York, London, and Oxford [4] - The company focuses on decoding biology to improve lives, leveraging machine-learning algorithms to analyze vast datasets and conduct millions of wet lab experiments weekly [3] Leadership and Presenters - The webinar will feature key personnel including Najat Khan, Ph.D. (Chief R&D and Chief Commercial Officer), David Mauro, M.D., Ph.D. (Chief Medical Officer), and other notable experts [6]

Financial Data and Key Metrics Changes - The company reported a pro forma cash balance of almost $800 million as of a few weeks ago, providing runway through the end of 2027 without additional financing [9][41] - The company achieved nearly $40 million in partnership inflows over the course of the year, contributing to over $500 million in total partnership inflows since inception [40][44] - The company reaffirmed its guidance for 2025 on an expense base of less than $450 million and for 2026, less than $390 million [41][42] Business Line Data and Key Metrics Changes - The collaboration with Roche and Genentech has resulted in the delivery of four whole genome phenomaps in GI oncology, generating over 100 billion GI oncology relevant cells [11] - The company earned a $30 million milestone payment from Roche and Genentech for the delivery of a whole genome neuromap, marking the second such milestone [10] Market Data and Key Metrics Changes - The company has identified numerous novel potential targets in both microglial and neuronal phenomaps, which are expected to lead to meaningful medicines in neuroscience [12][14] - The company is leveraging AI and machine learning techniques to enhance drug discovery and development processes, indicating a strong focus on technological advancement in the biotech sector [18][19] Company Strategy and Development Direction - The company aims to translate platform insights into repeatable clinical proof, focusing on both wholly owned programs and partnerships [7] - The strategic plan laid out in May allowed the company to hit multiple high-value milestones while reducing its expense base by 35% from 2024 [40][41] - The company is committed to maintaining deep, collaborative partnerships while being selective about new partnerships to ensure mutual value [60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong position and the potential for significant advancements in the next 18 months [9] - The new CEO emphasized the importance of translating data and insights into tangible proof points that matter for patients and shareholders [64][66] - Management acknowledged the challenges of drug discovery but remains focused on disciplined execution and capital stewardship [66] Other Important Information - The company is in a robust financial position, having completed all restructuring associated with recent transactions and focusing on high-value projects [42][44] - The company is actively working on multiple programs, including CDK7 and REC-4881, with significant updates expected in the near future [46][49] Q&A Session Summary Question: Can you review expectations for cash burn through 2026 and how this works with runway expectations through 2027 without additional financing? - Management confirmed that the company has fully utilized the ATM and does not plan to open a new one, allowing for a cash balance that supports operations through the end of 2027 without additional financing [51][52] Question: How do you see platform utilization feeding into the quality or uniqueness of newer assets? - The new CEO highlighted that even older programs leverage the current platform significantly, and improvements in compounds continue throughout the development process [56][57] Question: Is Recursion looking to maintain current biopharma partnerships or expand to new partnerships in the near to midterm? - The company is focused on deepening existing partnerships while remaining open to new collaborations that can drive significant value [60]

Financial Status & Outlook - Recursion had approximately $785 million in cash as of October 9, 2025 [12, 72] - The company anticipates a cash runway through the end of 2027 without needing additional financing [12, 71] - Recursion projects its 2025 cash burn to be less than $450 million [73] - The company expects its 2026 cash burn to be less than $390 million [73] - Total cash inflows exceeding $500 million have been achieved across all partnerships and collaborations [15, 72] Pipeline & Platform Advancements - The company is anticipating multiple catalysts in the second half of 2025, including additional safety and efficacy data for REC-4881 in Familial Adenomatous Polyposis (FAP) [11, 79] - Recursion's platform has facilitated a $30 million milestone payment for delivering a second whole-genome neuro map [15, 72, 77] - In a Phase 1b/2 trial of REC-4881, 43% median reduction in total polyp burden was observed [61] - 6 out of 6 patients achieved >30% reduction in total polyp burden in REC-4881 Phase 1b/2 trial [62] - In Phase 1 monotherapy dose-escalation of REC-617, 90% of patients experienced treatment-related adverse events (TRAEs), with 28% being Grade ≥3 [48]