Recursion Pharmaceuticals' Update Could Shed Light On Pipeline, Cost-Saving Plans, Analyst Says

Recursion Pharmaceuticals Inc RXRX is a leader in the TechBio space "due to its broad capabilities and extensive internal data generation," according to Needham.

The Recursion Pharmaceuticals Analyst: Analyst Gil Blum maintained a Buy rating and price target of $11.

The Recursion Pharmaceuticals Thesis: The company's May update, during which it will provide insights into its pipeline and financial guidance, remains "the primary near-term driver," Blum said in the note.

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Recursion Pharmaceuticals is expected to provide "clarity on the future direction of its preclinical/clinical pipeline" as well as additional details around its cost-savings strategy and financial guidance after the merger with Exscientia, he added.

The company has more than 10 partnered programs in immunology and oncology, which have the potential to bring in around $200 million in near-term milestones and $20 billion in future total revenue, the analyst stated.

"We expect clinical readouts this year to be largely incremental (starting with FAP in 1H:25) but important for supporting the overall platform," he further wrote.

Recursion Pharmaceuticals ended 2024 with $603 million in cash, which is expected to support operations into 2027, Blum said.

RXRX Price Action: Shares of Recursion Pharmaceuticals had declined by 4.7% to $7.14 at the time of publication on Monday.

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