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Recursion Pharmaceuticals Inc (RXRX)



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Upturn Advisory Summary
08/28/2025: 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 2.12B 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 0.92 | 52 Weeks Range 3.79 - 12.36 | Updated Date 08/29/2025 |
52 Weeks Range 3.79 - 12.36 | Updated Date 08/29/2025 | ||
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 2025-08-05 | When - | Estimate -0.35 | Actual -0.41 |
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 1675112217 | Price to Sales(TTM) 32.87 |
Enterprise Value 1675112217 | Price to Sales(TTM) 32.87 | ||
Enterprise Value to Revenue 25.97 | Enterprise Value to EBITDA -5.31 | Shares Outstanding 427312992 | Shares Floating 416111850 |
Shares Outstanding 427312992 | Shares Floating 416111850 | ||
Percent Insiders 4.74 | Percent Institutions 69.29 |
Upturn AI SWOT
Recursion Pharmaceuticals Inc

Company Overview
History and Background
Recursion Pharmaceuticals Inc. was founded in 2013 by Chris Gibson and Blake Borgeson. It uses machine learning and experimental biology to discover, develop, and deliver medicines. It started with a focus on repurposing existing drugs and expanded to discover new molecules.
Core Business Areas
- Drug Discovery Platform: Recursion's core business revolves around its AI-powered drug discovery platform, which uses high-throughput screening and advanced machine learning algorithms to identify potential drug candidates across various therapeutic areas.
- Clinical Development: The company progresses identified drug candidates through preclinical and clinical development stages, focusing on novel targets and disease pathways.
- Technology Licensing and Partnerships: Recursion also generates revenue through licensing its technology platform and partnering with other pharmaceutical companies for drug discovery and development collaborations.
Leadership and Structure
The CEO of Recursion Pharmaceuticals is Chris Gibson. The company has a structured leadership team overseeing drug discovery, clinical development, technology, and operations.
Top Products and Market Share
Key Offerings
- REC-994: REC-994 is Recursion's lead clinical candidate, being developed for the treatment of cerebral cavernous malformation (CCM). Currently in Phase 2 clinical trials. Competitors are companies developing treatments for CCM, with a significant focus on off-label use of existing medications and investigational therapies.
- REC-4881: REC-4881 is being developed for the treatment of Neurofibromatosis Type 2 (NF2)-mutant meningiomas. Currently in Phase 2 clinical trials. Competitors are companies developing treatments for NF2-mutant meningiomas.
Market Dynamics
Industry Overview
The pharmaceutical industry is experiencing a shift towards AI-driven drug discovery, driven by the potential to accelerate drug development timelines and reduce costs. There is a trend towards personalized medicine and a greater understanding of disease biology.
Positioning
Recursion is positioned as a leader in AI-driven drug discovery, differentiating itself through its extensive biological dataset, proprietary algorithms, and integrated drug discovery platform. Its competitive advantage lies in its ability to rapidly screen and identify potential drug candidates.
Total Addressable Market (TAM)
The TAM for drug discovery is significant, estimated at hundreds of billions of dollars. Recursion is positioned to capture a portion of this market through its AI-driven platform by creating medicines in various verticals and leveraging partnerships.
Upturn SWOT Analysis
Strengths
- Proprietary AI-driven drug discovery platform
- Extensive biological dataset
- Experienced leadership team
- Strong partnerships with leading pharmaceutical companies
- Early mover advantage in AI-enabled drug discovery
Weaknesses
- High cash burn rate
- Reliance on successful clinical trial outcomes
- Competition from other AI-driven drug discovery companies
- Early stage clinical pipeline
- Dependence on external partnerships.
Opportunities
- Expansion into new therapeutic areas
- Further development of its AI platform
- Strategic acquisitions of complementary technologies
- Increased adoption of AI in drug discovery
- Partnerships with big pharma for new molecule identification and pipeline drug acceleration.
Threats
- Regulatory hurdles for AI-driven drug discovery
- Failure of clinical trials
- Competition from established pharmaceutical companies
- Rapid technological advancements in AI
- Economic recession and decreased investment in biotech.
Competitors and Market Share
Key Competitors
- EXAI
- CRSP
- NTLA
- GILD
Competitive Landscape
Recursion's advantage lies in its AI-driven drug discovery platform, but it faces competition from established pharmaceutical companies with larger resources and existing drug pipelines. CRISPR companies mentioned above are its competitors with respect to drug development and technological innovation.
Growth Trajectory and Initiatives
Historical Growth: Historically, Recursion's growth has been driven by its expansion of its AI platform, new partnerships, and advancements in clinical programs.
Future Projections: Future growth is projected to be driven by its clinical pipeline advancements, expansion of its drug discovery platform, and potential for new partnerships.
Recent Initiatives: Recent initiatives include collaborations with pharmaceutical companies and the advancement of key drug candidates through clinical trials.
Summary
Recursion Pharmaceuticals is a high-growth, AI-driven drug discovery company with a promising platform and clinical pipeline. The company's strengths include its unique technology and strategic partnerships. Risks include high cash burn, clinical trial failures, and competition. Continued platform advancement and successful trial outcomes are crucial for long-term success.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company SEC Filings
- Company Website
- Industry Reports
- Analyst Reports
Disclaimers:
The data and analysis provided are for informational purposes only and should not be considered financial advice. Investment decisions should be based on thorough research and consultation with a qualified financial advisor.
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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