Latest news with #REC-617
Globe and Mail
11-04-2025
- Business
- Globe and Mail
This Nvidia-Backed AI Stock Is Shrugging Off Market Pain Thanks to the FDA. Should You Buy Shares Now?
Recursion Pharmaceuticals (RXRX) shares closed up 27% after the Food and Drug Administration (FDA) said it wants to phase out animal testing in drug development. The U.S. regulatory authority wants to switch to 'more effective, human-relevant methods' instead, including machine learning and artificial intelligence, according to its press release on Friday. FDA's announcement is driving RXRX higher as it aligns perfectly with Recursion Pharmaceuticals' core business. The biotechnology company specializes in using AI for accelerated drug discovery. Despite today's surge, however, Recursion Pharmaceuticals stock is down nearly 55% versus its year-to-date high. Is It Too Late to Invest in Recursion Pharmaceuticals? FDA's announcement could help Recursion Pharmaceuticals push further to the upside as it has a massive dataset of more than 60 petabytes, which is one of the largest in the biotech space. Recursion already counts notable names like Roche (RHHBY), Merck (MRK), and Sanofi (SNY) as partners. And with FDA promoting the use of AI models in drug development, it's reasonable to believe that other drugmakers would want to follow suit, potentially helping RXRX shares extend gains through the remainder of 2025. In fact, the biotech stock could climb all the way back to $11 by the end of this year, according to Gil Blum – a senior analyst at Needham. Why Is Needham Bullish on RXRX Shares? Recursion Pharmaceuticals came in shy of Street estimates in its latest reported quarter in February. Still, Blum expects RXRX to nearly double from current levels as it has a promising pipeline. It's REC-617, for example, has shown encouraging results in early clinical studies. Recursion stock will extend gains as the biotechnology company continues to advance its clinical programs and capitalize on strategic partnerships to foster innovation in 2025, he added. Needham expects Recursion to achieve significant synergies from its $688 million Exscientia deal as well. What's the Consensus Rating on Recursion Stock? Other Wall Street analysts are not as bullish on Recursion Pharmaceuticals as Needham, given the consensus rating on RXRX currently sits at 'Hold.' However, their mean target of $8.50 still represents potential upside of more than 50% from here.
Yahoo
06-04-2025
- Business
- Yahoo
Recursion Pharmaceuticals (NasdaqGS:RXRX) Sees 27% Weekly Drop After Leadership Changes
Recursion Pharmaceuticals witnessed a 27% decline in market value over the last week, a period marked by significant Executive and Board changes. The company appointed Dr. Namandjé Bumpus and Elaine Sun to its Board, bolstering its leadership with extensive experience in regulatory science and the financial sector. Concurrently, the global equity markets endured a heavy sell-off, with the Nasdaq entering bear market territory and posting a 10% weekly decline, largely driven by trade tensions. Recursion's drop aligns with these broader market trends, further compounded by strategic internal shifts. We've identified 4 risks for Recursion Pharmaceuticals (2 are potentially serious) that you should be aware of. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. The recent executive and board changes at Recursion Pharmaceuticals come amidst a broader market sell-off, aligning with a significant decline in the company's market value. While such shifts may contribute to short-term volatility, they also hold potential to positively affect the company's long-term narrative. The addition of experienced leaders could enhance strategic direction and bolster the future success of key initiatives such as REC-617 and REC-994 trials. These trials are pivotal for advancing AI-driven drug discovery, potentially leading to substantial improvements in revenue and earnings forecasts. Over a longer term of three years, Recursion's total shareholder return was a decline of 36.24%, indicating challenges in maintaining investor confidence. This is contrasted by a generally volatile performance over the past year, where Recursion underperformed the US Biotechs industry, which recorded a decline of 14.6%. From a market perspective, Recursion also lagged behind the broader US market's 3.4% decline in the same timeframe. With the current share price at US$5.1, there is a notable gap to the analyst consensus price target of US$9.0, representing a significant potential upside should the company's initiatives succeed as forecasted. However, the large discrepancy also reflects market skepticism regarding achieving revenue growth expectations and profitability milestones given the current operational risks and high cash burn rate. The updates around administrative changes and broader market movements could further influence investor sentiment and subsequent stock performance. Understand Recursion Pharmaceuticals' earnings outlook by examining our growth report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:RXRX. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
07-03-2025
- Business
- Yahoo
This Biotech Stock Could Be the Best Investment of the Decade
It's typically not too difficult to find a company that should perform well for the next couple of years. Two years isn't very long, after all, and the stock market's dynamics tend to dictate performance more. Identifying a stock that's likely to lead a marketwide charge for a decade is a different story. The organization in question must be able to offer something that's not only marketable for a long while, but also no other outfit can mimic. Such companies are relatively rare. There is one such stock to consider buying into sooner rather than later, though. That's a biotech company called Recursion Pharmaceuticals (NASDAQ: RXRX). And you can still plug into the ticker at a nice discount. Never heard of it? It would be a bit surprising if you had. Its market cap is a mere $3 billion, and it only did $58 million worth of business last year. And like many other young players in the biotechnology business, this one's also still booking sizable losses, adding to investors' general disinterest. What this company lacks in size and profits, though, it more than makes up for in potential. Just as the "Pharmaceuticals" in its name suggests, Recursion is a drug developer -- chiefly of therapies for more complicated (and expensive) ailments. For instance, its candidate REC-617 is being tested as a treatment for a number of difficult-to-treat solid tumors. REC-994 is being developed as a therapy for a condition called cerebral cavernous malformation, which can cause bleeding in the brain. Although both are in early-stage trials, given the lack of real alternatives, hopes for them and for the company's eight other pipeline candidates are high. It's not the drugs, however, that make Recursion such a compelling investment prospect. Rather, it's how these drugs were designed. The company is using its own proprietary artificial intelligence (AI) platform -- called Recursion OS -- to predesign and pretest these treatments, to determine the odds of success before committing time and money to a project. More importantly for interested investors, Recursion is now essentially sharing revenue-bearing access to this powerful software with other drug companies, creating a massive opportunity that's just now beginning to gel. It's not just an interesting business idea, to be clear. Major pharmaceutical names like Roche Holding, Bayer, Germany's Merck KGaA, Sanofi, and Rallybio are all on board, using Recursion OS to develop some of their next drugs. And well they should, given the time and cost involved in developing any new pharmaceutical and then getting it approved. Most estimates put the average cost at somewhere between $1 billion and $2 billion per drug, while the typical development time is in the ballpark of a decade. A lot can happen over that much time, and should a new drug fail in the latter stages of its trials, it can be an expensive misstep. Using a platform like Recursion OS, though, much of the cost-based risk can be sidestepped. The software also means drugmakers don't waste time, preventing competitors from developing an alternative drug in the meantime. And the difference is stark: With Recursion OS, what once required years and millions of dollars to figure out now only takes weeks and thousands of dollars. Perhaps even more promising is the fact that this biotechnological tool allows the pharmaceutical industry to investigate new research and development ideas that simply weren't possible to explore before. Industry research outfit Global Market Insights predicts the AI-powered drug discovery business will grow at an annualized pace of nearly 30% through 2032, jibing with a similar outlook from Straits Research. The underlying idea just holds too much promise to not pan out. Given the power of its proprietary platform and the sheer competitiveness and rising cost of being in the pharmaceutical business, Recursion is positioned to capture more than its fair share of this growth. That's the bullish argument. But if there's so much promise here, why is Recursion Pharmaceuticals' stock stuck near its record low, following a peak reached in mid-2021 soon after it went public? There's a perfectly good answer: Like so many other technology and biopharma stocks of its ilk and age, Recursion soared on hype before the world was fully ready to embrace its solution. Interest eventually waned -- ironically just shortly before the company became ready, willing, and able to deliver as promised. Analysts expect top-line growth of 75% this year, to be followed by sales growth of more than 37% next year. That still won't be enough to push the company out of the red, which may not happen for the next few years. A swing to a profit is on the radar within the next 10 years, however, and could be an explosive catalyst for the stock whenever it happens. Of course, simply making progress toward that finish line is likely to be good for the stock in the meantime, even if there's sure to be plenty of continued volatility between now and then. The analyst community's current consensus one-year price target stands at $8.60 per share, more than 30% above the present price. Just bear in mind that with this ticker's above-average potential reward, you'll get above-average risk. Manage it accordingly. Before you buy stock in Recursion Pharmaceuticals, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Recursion Pharmaceuticals wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $718,876!* Now, it's worth noting Stock Advisor's total average return is 873% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of March 3, 2025 James Brumley has no position in any of the stocks mentioned. The Motley Fool recommends Roche Holding AG. The Motley Fool has a disclosure policy. This Biotech Stock Could Be the Best Investment of the Decade was originally published by The Motley Fool
Globe and Mail
07-03-2025
- Business
- Globe and Mail
This Biotech Stock Could Be the Best Investment of the Decade
It's typically not too difficult to find a company that should perform well for the next couple of years. Two years isn't very long, after all, and the stock market's dynamics tend to dictate performance more. Identifying a stock that's likely to lead a marketwide charge for a decade is a different story. The organization in question must be able to offer something that's not only marketable for a long while, but also no other outfit can mimic. Such companies are relatively rare. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » There is one such stock to consider buying into sooner rather than later, though. That's a biotech company called Recursion Pharmaceuticals (NASDAQ: RXRX). And you can still plug into the ticker at a nice discount. What is Recursion Pharmaceuticals? Never heard of it? It would be a bit surprising if you had. Its market cap is a mere $3 billion, and it only did $58 million worth of business last year. And like many other young players in the biotechnology business, this one's also still booking sizable losses, adding to investors' general disinterest. What this company lacks in size and profits, though, it more than makes up for in potential. Just as the "Pharmaceuticals" in its name suggests, Recursion is a drug developer -- chiefly of therapies for more complicated (and expensive) ailments. For instance, its candidate REC-617 is being tested as a treatment for a number of difficult-to-treat solid tumors. REC-994 is being developed as a therapy for a condition called cerebral cavernous malformation, which can cause bleeding in the brain. Although both are in early-stage trials, given the lack of real alternatives, hopes for them and for the company's eight other pipeline candidates are high. It's not the drugs, however, that make Recursion such a compelling investment prospect. Rather, it's how these drugs were designed. The company is using its own proprietary artificial intelligence (AI) platform -- called Recursion OS -- to predesign and pretest these treatments, to determine the odds of success before committing time and money to a project. More importantly for interested investors, Recursion is now essentially sharing revenue-bearing access to this powerful software with other drug companies, creating a massive opportunity that's just now beginning to gel. The industry's ready to embrace such a solution It's not just an interesting business idea, to be clear. Major pharmaceutical names like Roche Holding, Bayer, Germany's Merck KGaA, Sanofi, and Rallybio are all on board, using Recursion OS to develop some of their next drugs. And well they should, given the time and cost involved in developing any new pharmaceutical and then getting it approved. Most estimates put the average cost at somewhere between $1 billion and $2 billion per drug, while the typical development time is in the ballpark of a decade. A lot can happen over that much time, and should a new drug fail in the latter stages of its trials, it can be an expensive misstep. Using a platform like Recursion OS, though, much of the cost-based risk can be sidestepped. The software also means drugmakers don't waste time, preventing competitors from developing an alternative drug in the meantime. And the difference is stark: With Recursion OS, what once required years and millions of dollars to figure out now only takes weeks and thousands of dollars. Perhaps even more promising is the fact that this biotechnological tool allows the pharmaceutical industry to investigate new research and development ideas that simply weren't possible to explore before. Industry research outfit Global Market Insights predicts the AI-powered drug discovery business will grow at an annualized pace of nearly 30% through 2032, jibing with a similar outlook from Straits Research. The underlying idea just holds too much promise to not pan out. Given the power of its proprietary platform and the sheer competitiveness and rising cost of being in the pharmaceutical business, Recursion is positioned to capture more than its fair share of this growth. Plenty of potential upside to justify the risk and volatility That's the bullish argument. But if there's so much promise here, why is Recursion Pharmaceuticals' stock stuck near its record low, following a peak reached in mid-2021 soon after it went public? There's a perfectly good answer: Like so many other technology and biopharma stocks of its ilk and age, Recursion soared on hype before the world was fully ready to embrace its solution. Interest eventually waned -- ironically just shortly before the company became ready, willing, and able to deliver as promised. Analysts expect top-line growth of 75% this year, to be followed by sales growth of more than 37% next year. That still won't be enough to push the company out of the red, which may not happen for the next few years. A swing to a profit is on the radar within the next 10 years, however, and could be an explosive catalyst for the stock whenever it happens. Of course, simply making progress toward that finish line is likely to be good for the stock in the meantime, even if there's sure to be plenty of continued volatility between now and then. The analyst community's current consensus one-year price target stands at $8.60 per share, more than 30% above the present price. Just bear in mind that with this ticker's above-average potential reward, you'll get above-average risk. Manage it accordingly. Should you invest $1,000 in Recursion Pharmaceuticals right now? Before you buy stock in Recursion Pharmaceuticals, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Recursion Pharmaceuticals wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $718,876!* Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of March 3, 2025
