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Recursion Pharmaceuticals Inc (RXRX)



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Upturn Advisory Summary
09/12/2025: RXRX (1-star) is currently NOT-A-BUY. Pass it for now.
1 Year Target Price $6.47
1 Year Target Price $6.47
1 | Strong Buy |
1 | Buy |
6 | Hold |
0 | Sell |
0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -72.45% | Avg. Invested days 29 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 2.11B USD | Price to earnings Ratio - | 1Y Target Price 6.47 |
Price to earnings Ratio - | 1Y Target Price 6.47 | ||
Volume (30-day avg) 8 | Beta 0.91 | 52 Weeks Range 3.79 - 12.36 | Updated Date 09/14/2025 |
52 Weeks Range 3.79 - 12.36 | Updated Date 09/14/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -1.81 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin - | Operating Margin (TTM) -916.75% |
Management Effectiveness
Return on Assets (TTM) -39.08% | Return on Equity (TTM) -86.34% |
Valuation
Trailing PE - | Forward PE - | Enterprise Value 1671494534 | Price to Sales(TTM) 32.64 |
Enterprise Value 1671494534 | Price to Sales(TTM) 32.64 | ||
Enterprise Value to Revenue 25.91 | Enterprise Value to EBITDA -5.31 | Shares Outstanding 429710016 | Shares Floating 416216169 |
Shares Outstanding 429710016 | Shares Floating 416216169 | ||
Percent Insiders 4.74 | Percent Institutions 69.3 |
Upturn AI SWOT
Recursion Pharmaceuticals Inc

Company Overview
History and Background
Recursion Pharmaceuticals Inc. was founded in 2013. The company leverages machine learning and automated experimentation to discover and develop drugs. Initially focused on rare diseases, Recursion has expanded its scope to include more common diseases. Significant milestones include partnerships with major pharmaceutical companies and the development of its AI-driven drug discovery platform.
Core Business Areas
- Drug Discovery: Recursion's core business is using its proprietary technology platform to identify potential drug candidates for various diseases.
- Partnerships: The company collaborates with pharmaceutical companies to develop and commercialize drug candidates.
- Technology Licensing: Recursion licenses its technology platform to other companies.
Leadership and Structure
Recursion is led by CEO Chris Gibson. The company has a structured management team with expertise in drug discovery, machine learning, and business development.
Top Products and Market Share
Key Offerings
- REC-994: A clinical-stage drug candidate for cerebral cavernous malformation (CCM). Market share data is not publicly available as it is still in development. The competitive landscape includes companies working on similar rare diseases treatments.
- REC-4881: A clinical-stage drug candidate for GM2 gangliosidosis. Market share data is not publicly available as it is still in development. Competitors include companies targeting rare genetic disorders.
- Phenomaps: Their data set of cellular images and other data points. Not directly competitive as it is only a data set.
Market Dynamics
Industry Overview
The pharmaceutical industry is undergoing a digital transformation, with companies increasingly adopting AI and machine learning to accelerate drug discovery. The AI-driven drug discovery market is rapidly growing.
Positioning
Recursion is positioned as a leader in AI-driven drug discovery, leveraging its proprietary technology platform and extensive datasets. It has a competitive advantage in its ability to generate and analyze large-scale biological data.
Total Addressable Market (TAM)
The total addressable market for AI in drug discovery is estimated to be in the billions of dollars. Recursion is positioned to capture a significant portion of this market through its innovative technology and partnerships.
Upturn SWOT Analysis
Strengths
- Proprietary AI-driven drug discovery platform
- Extensive datasets of cellular images and biological data
- Strong partnerships with major pharmaceutical companies
- Experienced management team
- Pipeline of clinical-stage drug candidates
Weaknesses
- High cash burn rate
- Reliance on partnerships for funding
- Risk of clinical trial failures
- Relatively young company
- Lack of marketed products
Opportunities
- Expansion of AI-driven drug discovery platform to new therapeutic areas
- Further partnerships with pharmaceutical companies
- Acquisition of smaller companies with complementary technologies
- Increase in funding for AI-driven drug discovery
- Growing demand for personalized medicine
Threats
- Competition from other AI-driven drug discovery companies
- Regulatory hurdles for new drug approvals
- Economic downturn that could reduce funding for drug development
- Data privacy concerns
- Rapid technological advancements that could render its platform obsolete
Competitors and Market Share
Key Competitors
- EXAI
- CRSP
- VRTX
Competitive Landscape
Recursion faces competition from other AI-driven drug discovery companies, as well as traditional pharmaceutical companies. Its advantages include its proprietary technology platform and its extensive datasets. Its disadvantages include its high cash burn rate and its reliance on partnerships for funding.
Major Acquisitions
Cyclica
- Year: 2023
- Acquisition Price (USD millions): 40
- Strategic Rationale: Expanded Recursion's AI capabilities in drug discovery and target identification.
Growth Trajectory and Initiatives
Historical Growth: Recursion has experienced rapid growth in recent years, driven by its innovative technology and partnerships. Revenue growth has been substantial, but the company is still operating at a loss.
Future Projections: Analyst estimates suggest that Recursion will continue to grow rapidly in the coming years, driven by its pipeline of clinical-stage drug candidates and its expanding partnerships.
Recent Initiatives: Recent initiatives include the expansion of its AI-driven drug discovery platform, the launch of new clinical trials, and the signing of new partnerships.
Summary
Recursion Pharmaceuticals is an innovative company leveraging AI for drug discovery and development. Its strong technology platform and key partnerships are boosting growth, while reliance on external funding and cash burn present challenges. Clinical trial outcomes and competition in the rapidly advancing field of AI-driven drug discovery remain crucial factors to watch. Continued partnerships and successful product development are key to long-term sustainability and growth.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings (SEC)
- Third party financial analysis reports
- Company website and press releases
- Analyst reports
Disclaimers:
The information provided is for informational purposes only and should not be considered investment advice. Market share data are estimates and may not be precise. Financial data is subject to change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Recursion Pharmaceuticals Inc
Exchange NASDAQ | Headquaters Salt Lake City, UT, United States | ||
IPO Launch date 2021-04-16 | Co-Founder, CEO & Director Dr. Christopher C. Gibson Ph.D. | ||
Sector Healthcare | Industry Biotechnology | Full time employees 800 | Website https://www.recursion.com |
Full time employees 800 | Website https://www.recursion.com |
Recursion Pharmaceuticals, Inc. operates as a clinical-stage biotechnology company, engages in the decoding biology and chemistry by integrating technological innovations across biology, chemistry, automation, data science, and engineering to industrialize drug discovery in the United States. The company develops REC-994, which is in Phase 2 clinical trial to treat cerebral cavernous malformation; REC-2282, which is in Phase 2/3 clinical trial for the treatment of neurofibromatosis type 2; REC-4881, which is in Phase 1b/2 clinical trial to treat familial adenomatous polyposis; REC-3964, which is in Phase 1 clinical trial to treat Clostridioides difficile infection; and REC-4881, which is in Phase 2 clinical trial to treat AXIN1 or APC mutant cancers. Its preclinical stage product includes RBM39 to treat HR-proficient ovarian cancer. The company has collaboration and agreement with Bayer AG; the University of Utah Research Foundation; Ohio State Innovation Foundation; Roche & Genentech; and Takeda Pharmaceutical Company Limited. Recursion Pharmaceuticals, Inc. was incorporated in 2013 and is headquartered in Salt Lake City, Utah.

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