Recursion Pharmaceuticals Faces Challenges and Opportunities
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: Fool
- Expected Clinical Progress: Recursion Pharmaceuticals anticipates data readouts for its potential cancer drug REC-1245 in the first half of the year, although these phase 1 results will primarily focus on safety rather than efficacy, likely limiting stock impact.
- Intensifying Competition: With Eli Lilly developing the industry's most powerful supercomputer, Recursion faces fierce competition from larger pharmaceutical companies, which may hinder its long-term goal of licensing AI models.
- Poor Market Performance: Recursion's stock has significantly declined over the past year, with a current market cap of $2.4 billion and no approved products, indicating a high-risk business model.
- Investment Risk Warning: While Recursion claims its AI technology can enhance drug development efficiency, it has yet to prove its effectiveness, prompting investors to carefully consider the high volatility and risks involved.
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Analyst Views on RXRX
Wall Street analysts forecast RXRX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RXRX is 7.75 USD with a low forecast of 5.00 USD and a high forecast of 11.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
2 Buy
4 Hold
0 Sell
Moderate Buy
Current: 4.320
Low
5.00
Averages
7.75
High
11.00
Current: 4.320
Low
5.00
Averages
7.75
High
11.00
About RXRX
Recursion Pharmaceuticals, Inc. is a clinical-stage TechBio company decoding biology and chemistry to industrialize drug discovery. Its Recursion Operating System (OS), a platform built across diverse technologies, enables the Company to map and navigate trillions of biological and chemical relationships within the Recursion Data Universe. The Company integrates physical and digital components as iterative loops of atoms and bits, scaling wet lab biology and chemistry data organized into virtuous cycles with computational tools to rapidly translate silico hypotheses into validated insights and novel chemistry. Its clinical programs in oncology and rare diseases include REC-617, REC-1245, REC-3565 and REC-4539. Its REC-617 is an orally bioavailable, cyclin-dependent kinase 7 (CDK7) inhibitor for the treatment of advanced solid tumors. Its REV102 program targets ectonucleotide pyrophosphatase/phosphodiesterase 1 (ENPP1), an enzyme implicated in the pathogenesis of HPP.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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