Salt Lake City, UT, Oct. 15, 2026 (GLOBE NEWSWIRE) -- Recursion Pharmaceuticals, Inc. (“Recursion”) (NASDAQ: RXRX), a leading clinical-stage company pioneering AI-enabled drug discovery and development decoding biology to radically improve lives, today announced the pricing of an underwritten offering of 61,540,000 shares of its Class A common stock at a price of $3.25 per share. All of the shares are to be sold by Recursion. Before deducting the underwriting discounts and commissions and estimated offering expenses, Recursion expects to receive total gross proceeds of approximately $200 million. The offering is expected to close on or about October 16, 2026, subject to satisfaction of customary closing conditions.
Leerink Partners, Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and Evercore Group L.L.C. are acting as joint bookrunning managers for the offering. Needham & Company, LLC is acting as lead manager for the offering.
The financing included participation from leading healthcare and institutional investors, including Janus Henderson Investors, Invus, Longaeva Partners, ARK Invest, Driehaus Capital Management and other prominent healthcare specialists and mutual funds.
The shares are being offered by Recursion pursuant to a registration statement on Form S-3, which became automatically effective upon filing with the U.S. Securities and Exchange Commission (“SEC”) on February 12, 2025. The offering is being made solely by means of a written prospectus and a prospectus supplement that form a part of the registration statement. The preliminary prospectus supplement and accompanying prospectus relating to the offering was filed on October 15, 2026. A final prospectus supplement and accompanying prospectus relating to the offering will also be filed with the SEC. These documents can be accessed for free through the SEC’s website at www.sec.gov. Alternatively, a copy of the final prospectus supplement and accompanying prospectus relating to this offering may be obtained, when available, by contacting: Leerink Partners LLC, Attention: Syndicate Department, 53 State Street, 40th Floor, Boston, MA 02109, by telephone at (800) 808-7525 ext. 6105 or by email at [email protected]; Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, by telephone at (866) 471-2526 or by email at [email protected]; Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, by telephone at (866) 718-1649 or by email at [email protected]; or Evercore Group L.L.C., Attention: Equity Capital Markets, 55 East 52nd Street, 35th Floor, New York, NY 10055, by telephone at (888) 474-0200 or by email at [email protected].
This press release does not constitute an offer to sell or a solicitation of an offer to buy, nor will there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of that state or jurisdiction.
About Recursion
Recursion (NASDAQ: RXRX) is a leading clinical-stage company pioneering AI-enabled drug discovery and development decoding biology to radically improve lives. Recursion is advancing a portfolio of differentiated investigational medicines across its wholly owned and partnered pipeline in oncology, rare disease, neuroscience, immunology, and other therapeutic areas with significant unmet need. Enabling its mission is the Recursion OS, an AI-native, end-to-end drug discovery and development platform integrating biology, chemistry, and clinical development into a unified intelligence system. Powered by proprietary multimodal data, purpose-built AI models, and bilingual teams fluent in both science and AI, the Recursion OS is designed to translate complex science into medicines that matter — faster, better, and at scale — for patients who are waiting.
Recursion's platform infrastructure is anchored in Salt Lake City, Utah and Milton Park, Oxfordshire, where its automated biology and chemistry laboratories generate proprietary data at industrial scale. Recursion also maintains offices in New York, Montréal, and London, three global hubs for talent and leadership at the intersection of AI and scientific innovation.
Forward-Looking Statements
This press release contains information that includes or is based upon “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding the expected completion and timing of closing of the offering, the anticipated total gross proceeds from the offering and all other statements that are not statements of historical facts. Forward-looking statements may or may not include identifying words such as “intend,” “plan,” “will,” “expect,” “anticipate,” “believe,” “potential,” “continue,” and similar terms. These statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statements, including but not limited to: prevailing market conditions; the satisfaction of customary closing conditions; general economic, industry or political conditions; challenges inherent in pharmaceutical research and development, including the timing and results of preclinical and clinical programs, where the risk of failure is high and failure can occur at any stage prior to or after regulatory approval due to lack of sufficient efficacy, safety considerations, or other factors; the fact that interim and preliminary clinical data, including data from a small number of patients in a single-arm study, may not be predictive of final results; our ability to leverage and enhance our drug discovery platform; the performance and limitations of our artificial intelligence and machine learning models and the data on which they are trained; our reliance on third parties, including collaborators, contract research organizations, and manufacturers; our ability to initiate clinical trials and enroll patients on expected timelines; the outcome of our discussions with the FDA, which may result in changes to the design or timing of, or delays in, our planned registrational trial of REC-4881; competition from other therapies and platforms; our ability to obtain financing for development activities and other corporate purposes; the satisfaction of customary closing conditions for the offering; the possibility that our preliminary estimate of cash, cash equivalents and restricted cash may change upon completion of our quarter-end financial close procedures; the success of our collaboration activities and our collaborators' discretion over option exercises, program advancement, and funding; our ability to obtain regulatory approval of, and ultimately commercialize, drug candidates; our ability to obtain, maintain, and enforce intellectual property protections; cyberattacks or other disruptions to our technology systems; our ability to attract, motivate, and retain key employees and manage our growth; inflation and other macroeconomic issues; and other risks and uncertainties such as those described under the heading "Risk Factors" in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K and our subsequent Quarterly Reports on Form 10-Q. All forward-looking statements speak only as of the date of this document and are based on management's current estimates, projections, and assumptions, and Recursion undertakes no obligation to correct or update any such statements, whether as a result of new information, future developments, or otherwise, except to the extent required by applicable law.
Sanofi získala do vývoje od Recursion kandidáta na perorální léčbu zánětlivých onemocnění; klinická studie fáze 1 je plánována na rok 2027. Recursion získá platbu za splnění milníku ve výši 10 milionů USD.
Potential first-in-class dual targeting inhibitor oral small molecule to enter Sanofi’s development pipeline, with phase 1 clinical study currently planned to begin in 2027
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Recursion Pharmaceuticals
Salt Lake City, UT, Oct. 15, 2026 (GLOBE NEWSWIRE) -- Recursion Pharmaceuticals, Inc. (“Recursion”) (NASDAQ: RXRX), a leading clinical-stage company pioneering AI-enabled drug discovery and development decoding biology to radically improve lives, today announced that Sanofi has optioned the first development candidate from the two companies’ multi-program research collaboration.
The option triggered a $10 million milestone payment to Recursion, bringing total upfront and milestone payments received from Sanofi under the collaboration to $144 million; Recursion is eligible for more than $300 million in additional milestones under the program, with double digit royalties on net product sales, if approved.
“The most important test of any technology platform in drug discovery is whether it can translate into differentiated medicines,” said Najat Khan, Ph.D., President and Chief Executive Officer of Recursion. “Together with Sanofi, we tackled a difficult design problem against a dual target product profile with high potential and delivered a molecule that Sanofi has now selected for its development pipeline. With additional programs advancing across our collaboration, this milestone is another important demonstration of how our platform can translate computational capabilities into differentiated medicines — and do so repeatedly.”
The potential first-in-class oral small molecule was designed to achieve a differentiated profile against a challenging dual target implicated in inflammatory disease. Optimizing for this target pair required navigating complex and competing chemistry constraints to achieve the desired balance of drug-like properties. The candidate was delivered by the combination of Recursion’s integrated AI-enabled drug design platform and small-molecule chemistry capabilities with Sanofi’s deep expertise in drug discovery and immunology. Recursion applied multiple computational design approaches across iterative cycles of prediction, chemical design, synthesis, and experimental validation to rapidly explore and optimize a complex chemical space.
"By combining Sanofi's drug discovery and clinical and translational knowledge in immunology with Recursion's AI-driven platform, we were able to move with speed and precision in a space where that balance is notoriously hard to achieve,” said Alyssa Johnsen, Therapeutic Area Head, Development, Immunology & Inflammation, Sanofi. “This new development candidate has potential to deliver a differentiated oral medicine with highly selective dual targeting that could be a meaningful advance for people living with inflammatory diseases who still lack adequate treatment options."
The candidate has now been added to Sanofi’s development pipeline and is expected to enter phase 1 clinical trials in 2027, with Sanofi funding and leading further development and commercialization to advance the program toward patients.
Building a growing portfolio through the Recursion-Sanofi collaboration
The Recursion-Sanofi collaboration was established to discover and advance a portfolio of potentially first- and best-in-class small molecule medicines across immunology and oncology by combining Sanofi’s deep therapeutic-area and drug-development expertise with Recursion’s integrated capabilities across biology, AI-enabled molecular design and chemistry.
With the first development candidate optioned, the collaboration has now achieved six progress-based milestones across five programs. Sanofi’s selection of the development candidate triggered a $10 million milestone payment to Recursion, bringing total upfront and milestone payments under the collaboration to $144 million to date.
Recursion remains eligible for more than $300 million in additional milestones under the program, with an average of low double-digit royalties on net product sales if successfully commercialized. The $10 million milestone payment will be recognized as revenue in the third quarter of 2026, and ends Recursion’s operational requirements related to this candidate, with all future payments resulting in profit to Recursion.
Additional programs across the collaboration continue to advance. Over the next 12 months, other programs in the joint portfolio have the potential to reach development candidate and other progress-based milestones.
About Recursion
Recursion (NASDAQ: RXRX) is a leading clinical-stage company pioneering AI-enabled drug discovery and development decoding biology to radically improve lives. Recursion is advancing a portfolio of differentiated investigational medicines across its wholly owned and partnered pipeline in oncology, rare disease, neuroscience, immunology, and other therapeutic areas with significant unmet need. Enabling its mission is the Recursion OS, an AI-native, end-to-end drug discovery and development platform integrating biology, chemistry, and clinical development into a unified intelligence system. Powered by proprietary multimodal data, purpose-built AI models, and bilingual teams fluent in both science and AI, the Recursion OS is designed to translate complex science into medicines that matter — faster, better, and at scale — for patients who are waiting.
Recursion's platform infrastructure is anchored in Salt Lake City, Utah and Milton Park, Oxfordshire, where its automated biology and chemistry laboratories generate proprietary data at industrial scale. Recursion also maintains offices in New York, Montréal, and London, three global hubs for talent and leadership at the intersection of AI and scientific innovation.
Forward-Looking Statements
This document contains information that includes or is based upon "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, those regarding the expected timing of the initiation of phase 1 clinical trials for the development candidate optioned by Sanofi; the potential of such development candidate, including its potential to be a first-in-class, differentiated oral medicine for inflammatory diseases; Sanofi’s funding and leadership of further development and commercialization of such development candidate; Recursion’s eligibility to receive future milestone payments and royalties under its collaboration with Sanofi, and the expected timing of revenue recognition for the $10 million milestone payment; the potential for additional programs in the collaboration to reach development candidate and other progress-based milestones over the next 12 months; the ability of Recursion’s platform to repeatedly translate computational capabilities into differentiated medicines; and all other statements that are not historical facts. Forward-looking statements may or may not include identifying words such as "plan," "will," "may," "could," "should," "expect," "anticipate," "intend," "believe," "estimate," "project," "designed to," "potential," "continue," and similar terms. These statements are subject to known or unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statements, including but not limited to: challenges inherent in pharmaceutical research and development, including the timing and results of preclinical and clinical programs, where the risk of failure is high and failure can occur at any stage prior to or after regulatory approval due to lack of sufficient efficacy, safety considerations, or other factors; our ability to leverage and enhance our drug discovery platform; the performance and limitations of our artificial intelligence and machine learning models and the data on which they are trained; our reliance on third parties, including collaborators, contract research organizations, and manufacturers; our ability to initiate clinical trials and enroll patients on expected timelines; competition from other therapies and platforms; our ability to obtain financing for development activities and other corporate purposes; the success of our collaboration activities and our collaborators' discretion over option exercises, program advancement, and funding, including the risk that Sanofi may delay, deprioritize, or discontinue development of the optioned development candidate; our ability to obtain regulatory approval of, and ultimately commercialize, drug candidates; our ability to obtain, maintain, and enforce intellectual property protections; cyberattacks or other disruptions to our technology systems; our ability to attract, motivate, and retain key employees and manage our growth; inflation and other macroeconomic issues; and other risks and uncertainties such as those described under the heading "Risk Factors" in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K and our subsequent Quarterly Reports on Form 10-Q. All forward-looking statements speak only as of the date of this document and are based on management's current estimates, projections, and assumptions, and Recursion undertakes no obligation to correct or update any such statements, whether as a result of new information, future developments, or otherwise, except to the extent required by applicable law.
Recursion Pharmaceuticals rozšiřuje pipeline prostřednictvím partnerství s Bayer, Roche, Genentech, Sanofi a Merck KGaA, která mohou přinést miliardové milníky a licenční poplatky. Na konci června měla hotovost 556,8 mil. USD a finanční rezervu do začátku roku 2028.
Key Takeaways RXRX is expanding a pipeline through pharma, tech and data partnerships while generating non-dilutive funding.RXRX's Bayer, Roche, Genentech, Sanofi and Merck KGaA deals offer billions in milestones and royalties.Recursion has built and curated more than 50 petabytes of multimodal data to scale AI-driven drug discovery. Recursion Pharmaceuticals (RXRX - Free Report) continues to leverage its AI-native drug discovery platform through a broad portfolio of pharma, technology and data partnerships. These collaborations are expanding its pipeline while generating non-dilutive funding to support R&D. As of the second quarter of 2026, RXRX had received more than $500 million in upfront and milestone payments. Recursion's cash, cash equivalents and restricted cash totaled $556.8 million as of the end of June. Based on its current operating plans, the company expects its cash runway to extend into early 2028 without additional financing.
Through its Bayer collaboration, Recursion is advancing precision oncology programs and is eligible for up to $1.5 billion in potential development and commercial milestones, plus tiered royalties. Its partnerships with Roche and its wholly-owned subsidiary, Genentech, cover neuroscience and gastrointestinal oncology and could support up to 40 programs, with each potentially generating more than $300 million in milestones, plus tiered royalties. In the second quarter of 2026, Genentech advanced the first neuroscience target from the collaboration into early discovery. Partnerships with Sanofi and Merck KGaA further diversify its pipeline across oncology and immunology, offering up to $5.2 billion and $674 million, respectively, in potential milestone payments, in addition to royalties.
Recursion is also strengthening its AI infrastructure and capabilities. Its NVIDIA partnership supported the development of BioHive-2, while the 2024 combination with Exscientia enhanced its computational chemistry and automated drug-design capabilities. By August 2026, Recursion has built and curated more than 50 petabytes of multimodal data, supporting its efforts to scale AI-driven drug discovery.
Technology and data partnerships with Google Cloud, Helix, Tempus and HealthVerity further enhance Recursion's platform. These relationships provide access to AI and cloud infrastructure, genomic and clinical data, and real-world patient data that can support drug discovery and clinical development. Collectively, the partnerships broaden Recursion’s technology and data capabilities while creating additional opportunities to advance its pipeline in the long term.
RXRX Faces Competitive Pressure in the TechBio IndustryIn the TechBio space, Relay Therapeutics (RLAY - Free Report) and Schrödinger (SDGR - Free Report) remain notable competitors that combine computational technologies with drug-discovery efforts. Relay's lead candidate, zovegalisib (RLY-2608), is being evaluated in the phase III ReDiscover-2 study for patients with PI3Kα-mutated, HR+/HER2- metastatic breast cancer. RLAY expects to initiate a phase III study of zovegalisib in first-line endocrine-sensitive breast cancer in early 2027, subject to regulatory feedback. Meanwhile, Relay expects to provide additional clinical data and a regulatory update from the phase I/II ReInspire study of zovegalisib in PIK3CA-driven vascular anomalies by year-end 2026.
Meanwhile, Schrödinger continues to advance its proprietary therapeutics portfolio, including SGR-1505, a MALT1 inhibitor in phase I development for relapsed/refractory B-cell malignancies, and SGR-3515, a Wee1/Myt1 co-inhibitor in phase I for advanced solid tumors. SDGR plans to complete its ongoing early-stage studies while seeking strategic partners to advance SGR-1505 and SGR-3515 beyond phase I rather than independently funding additional studies. Both Relay and Schrödinger are steadily building robust pipelines through cutting-edge approaches.
RXRX’s Stock Price, Valuation & Estimate MovementsYear to date, RXRX shares have lost 9.6% against the industry’s 8.5% growth. Recursion Pharmaceuticals has also underperformed the sector and the S&P 500 during the same time frame, as seen in the chart below.
RXRX Stock Underperforms the Industry, Sector & the S&P 500Image Source: Zacks Investment Research
Recursion Pharmaceuticals is trading at a discount to the industry, as seen in the chart below. Going by the price/book value ratio, the company’s shares currently trade at 2.16, which is less than 4.02 for the industry. The stock is trading significantly below its five-year mean of 3.20.
RXRX Stock ValuationImage Source: Zacks Investment Research
Loss estimates for 2026 have narrowed from $1.01 to 94 cents per share over the past 60 days. During the same time frame, RXRX’s 2027 loss per share estimates have narrowed from 98 cents to 94 cents.
RXRX Estimate MovementImage Source: Zacks Investment Research
Recursion Pharmaceuticals currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recursion Pharmaceuticals uvedla, že po integraci Exscientia snížila náklady zhruba o 40 % a dál rozvíjí svou AI platformu pro objevování léků. U programu REC-4881 pro FAP oznamuje ve fázi II rychlé a trvalé snížení zátěže polypy, včetně poklesů po třech měsících bez léčby.
Recursion Pharmaceuticals (NASDAQ:RXRX) outlined its strategy, clinical pipeline and partnership progress at Morgan Stanley’s Global Healthcare Conference, with CEO and President Najat Khan emphasizing the company’s shift toward an end-to-end, AI-enabled drug discovery and development platform.
Khan said the company has changed materially over the past 12 to 18 months, expanding its platform beyond biology into chemistry and clinical development. She said Recursion has also reduced its cost base by about 40% on a pro forma basis following the integration with Exscientia, citing greater use of AI agents, automation and capital prioritization.
“The company has really transformed to a company with differentiated assets powered by an end-to-end AI engine with repeatability,” Khan said. Focus on novel biology and clinical programs Khan said the growth of China-originated drug innovation reinforces Recursion’s emphasis on discovering novel biology and first-in-class targets. She characterized China’s capabilities as particularly strong in optimizing known biology, while arguing that the next frontier lies in identifying new targets and connecting them to appropriate disease indications.
The company highlighted REC-4881, an oral MEK1/2 inhibitor being developed for familial adenomatous polyposis, or FAP. Khan said the program resulted from Recursion’s biology platform, which screened compounds in cells with APC gene loss, a driver of FAP. The company’s models identified the MEK1/2 inhibitor without beginning with that mechanism as a prior hypothesis, she said.
According to Khan, Phase II data showed rapid and durable reductions in polyp burden, including reductions after patients had been off treatment for three months. She said the company observed reductions in both upper and lower gastrointestinal polyps. There are no approved drugs for FAP, and current care involves surveillance and surgery, she said.
Recursion plans to present additional Phase II data at the CGA-IGC meeting in early November. Khan said the company is also in active discussions with the FDA regarding a registrational pathway. Its base case centers on progression-free survival-type measures involving clinically meaningful events such as surgery and dysplasia.
On safety, Khan said more than 85% of treatment-related adverse events observed to date have been Grade 1 or 2. Dermatitis has been the primary event, along with transient creatine phosphokinase changes. She said Recursion is managing dermatitis proactively and is evaluating intermittent dosing, in addition to its once-daily regimen, given the durability observed off treatment.
REC-1245 and broader pipeline Recursion also discussed REC-1245, a program targeting RBM39. Khan said the target emerged from the company’s genetic mapping work while it was studying CDK12-related biology. The company subsequently designed a novel degrader and moved it into clinical development within about 18 months, she said.
Khan described potential applications in genomically unstable solid tumors and pediatric transcriptionally driven tumors, including Ewing sarcoma. She said the company expects additional data later in the year and will allow the data to determine whether the program may be suited for monotherapy, combination treatment or both.
Other pipeline activity includes a Phase I program targeting PI3K-alpha H1047R, as well as IND-enabling programs in NPP1 and LSD. Khan said the company continually reviews its portfolio to concentrate resources on programs where it has the greatest conviction.
Partnership economics and platform validation Chief Financial Officer Ben Taylor said Recursion has received more than $525 million in upfront payments and milestones from partnerships, including more than a dozen achieved milestones. He said approximately $125 million of that total represents milestones.
The company’s collaboration with Roche and Genentech includes a 10-year exclusive neuroscience partnership. Khan said Genentech has opted two biology maps under the arrangement for about $30 million each and recently advanced a previously unexplored neuroscience target into joint small-molecule discovery.
For each program under the arrangement, Khan said potential milestones total roughly $300 million, along with single-digit royalties. Taylor said Roche has paid Recursion more than $250 million so far under the partnership. While Roche has access to the work product, Taylor said Recursion retains ownership of the underlying data and in-house capabilities generated through the collaboration.
Recursion’s Sanofi collaboration is focused on small molecules for intractable immunology, inflammation and oncology targets. Khan said Recursion has achieved five milestones with Sanofi and has guided to a potential development-candidate milestone for a first-in-class oral small-molecule program. She said the agreement provides for more than $300 million in milestones per program and teen-level royalties.
AI productivity claims Khan said the company is focused not only on faster drug discovery but also on improving molecule quality. She cited Recursion’s ability to move from target to development candidate in about one and a half years and said the company physically makes about 90% fewer molecules than traditional approaches because its predictions are intended to be closer to the desired endpoint.
Taylor said Recursion’s AI outputs can be tested physically in the laboratory against other compounds developed for the same targets. Khan said the company’s differentiator is the integration of proprietary data generation, computational models, laboratory validation and clinical feedback, rather than model architecture alone.
About Recursion Pharmaceuticals (NASDAQ:RXRX) Recursion Pharmaceuticals, Inc (NASDAQ: RXRX) is a biotechnology company that uses artificial intelligence, automation, and large-scale biological experimentation to accelerate the discovery and development of medicines. Its technology platform, known as the Recursion Operating System, integrates data from biology, chemistry, imaging, and machine learning to identify potential drug candidates and better understand disease biology.
The company develops therapies for areas including oncology, rare diseases, and neurological disorders.
Recursion Pharmaceuticals rozšiřuje onkologické portfolio o REC-1245, REC-617, REC-3565, REC-4539 a REC-7735 a s FDA jedná o schvalovací cestě pro REC-4881 ve FAP. Genentech navíc přesunul první neurologický cíl ze své spolupráce do raného discovery programu.
Key Takeaways Recursion is advancing REC-4881 in FAP while pursuing a potential registrational pathway with the FDA.RXRX is expanding its oncology pipeline with REC-1245, REC-617, REC-3565, REC-4539 and REC-7735.Genentech has advanced a neuroscience target from its RXRX collaboration, further validating its platform. Recursion Pharmaceuticals (RXRX - Free Report) uses an AI-driven drug discovery platform, Recursion Operating System (OS), to identify and develop novel therapies across its pipeline. It is advancing several clinical-stage programs, with REC-4881 emerging as its most advanced internal candidate and multiple oncology assets providing additional pipeline diversification.
REC-4881, an allosteric MEK1/2 inhibitor, is being evaluated in a phase Ib/II TUPELO study for familial adenomatous polyposis (FAP), a rare inherited disorder characterized by the development of numerous colorectal polyps. Earlier clinical data showed rapid and durable reductions in polyp burden, which Recursion described as the first clinical validation of the Recursion OS. RXRX has initiated discussions with the FDA on a potential registrational pathway, while additional phase II safety and efficacy data from the TUPELO study are expected in November 2026.
Beyond REC-4881, Recursion is advancing several oncology candidates, including REC-1245 for biomarker-enriched solid tumors and lymphoma, REC-617 for advanced solid tumors and REC-3565 for B-cell malignancies, all of which are currently undergoing early-stage development. REC-4539, an LSD1 inhibitor, also entered clinical-stage development for solid tumors, with potential applicability in hematologic malignancies. Meanwhile, REC-7735, an AI-designed PI3Kα H1047R inhibitor, has received clinical-study clearance and is expected to enter a phase I/II study in the second half of 2026 for selected PIK3CA H1047R-mutant solid tumors, adding another potential catalyst to the pipeline.
Recursion is also advancing REC-102, an ENPP1 inhibitor for hypophosphatasia, following its acquisition of full rights to the program from Rallybio. The oral candidate is designed as a potential disease-modifying treatment for hypophosphatasia and expands Recursion's presence in rare diseases. In addition, Genentech (a wholly owned subsidiary of Roche) recently advanced the first neuroscience target from its collaboration with Recursion into an early discovery program, providing another potential validation of RXRX’s proprietary platform. With multiple clinical programs advancing and several potential catalysts ahead, Recursion’s expanding pipeline could strengthen its long-term growth prospects.
RXRX Faces Competitive Pressure in the TechBio IndustryIn the TechBio space, Relay Therapeutics (RLAY - Free Report) and Schrödinger (SDGR - Free Report) are emerging as strong competitors to Recursion Pharmaceuticals, using computationally driven platforms to discover and develop novel therapies.
RLAY is currently evaluating its lead candidate, zovegalisib (RLY-2608), a mutant-selective PI3Kα inhibitor, in the phase III ReDiscover-2 study in combination with fulvestrant in previously CDK4/6-treated, PIK3CA-mutated HR+/HER2- advanced breast cancer. It is also planning to initiate a separate late-stage frontline breast cancer study of the candidate, subject to regulatory feedback, while the phase I/II ReInspire study is evaluating zovegalisib in PIK3CA-driven vascular anomalies. Relay Therapeutics is also developing RLY-8161, an NRAS-selective inhibitor, in a phase I/II study for NRAS-mutant melanoma and other solid tumors. In addition, the company is advancing a preclinical, non-inhibitory chaperone program for Fabry disease, as well as early-stage discovery programs across both precision oncology and genetic diseases.
Schrödinger’s lead proprietary pipeline consists of SGR-1505, a MALT1 inhibitor in phase I for relapsed/refractory B-cell malignancies, and SGR-3515, a Wee1/Myt1 inhibitor undergoing phase I development for advanced solid tumors. Both programs were discovered using Schrödinger's computational capabilities, with SGR-3515 showing preliminary clinical activity and SGR-1505 demonstrating encouraging activity in B-cell malignancies in earlier updates. SDGR plans to complete its ongoing early-stage studies while seeking strategic partners to advance SGR-1505 and SGR-3515 beyond phase I.
RXRX’s Stock Price, Valuation & Estimate MovementsYear to date, RXRX shares have lost 17.4% against the industry’s 9.7% growth. During the same time frame, Recursion has also underperformed the S&P 500 and the overall medical sector, as seen in the chart below.
RXRX Mixed Stock PerformanceImage Source: Zacks Investment Research
Recursion is trading at a discount to the industry, as seen in the chart below. Going by the price/book value ratio, the company’s shares currently trade at 1.97, which is less than 3.97 for the industry. The stock is trading significantly below its five-year mean of 3.22.
RXRX Stock ValuationImage Source: Zacks Investment Research
Loss estimates for 2026 have narrowed from 99 cents per share to 92 cents over the past 30 days. During the same time frame, RXRX’s 2027 loss per share estimates have narrowed from 96 cents to 92 cents.
RXRX Estimate MovementImage Source: Zacks Investment Research
Recursion currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recursion Pharmaceuticals má nyní 5 klinických programů, včetně REC-4881 v FAP, a uvádí jedny z nejslibnějších klinických dat v historii firmy. Z partnerství získala více než 500 milionů USD.
Good morning, everyone, and thank you for joining us. Before we begin, I'd like to remind everyone that today's discussion will include forward-looking statements. Next slide. Please refer to today's press release and our SEC filings for additional details. At Recursion, our mission is to decode biology to radically improve patient lives. And we do this by building transformational medicines with an AI-native product engine.
Over the past year, we have reached an important inflection point. We are no longer just discussing the potential of our platform. We are demonstrating the ability of our AI-native product engine to generate differentiated programs and medicines. Just as a reminder, the engine you see on the left-hand side is built as a continuous learning system. Proprietary multimodal data created in our data factory powers Frontier AI models.
And these models can generate new hypotheses where every single prediction is tested experimentally. Each cycle strengthens both the engine and the products it creates. Ultimately, though, the measure of any engine is its output. So let's talk about that. First, our internal pipeline continues to mature. We now have 5 clinical stage programs, including REC-4881 in FAP, where we have generated some of the most promising clinical data in the company's history.
Remember, in a disease with no approved therapy and a TAM of almost $10 billion. Second, we continue to make significant progress in our partnerships while learning from the best in the industry and also while validating our engine externally. Together with leading biopharma partners, we have generated more than $500 million in realized inflows while advancing
Recursion Pharmaceuticals vykázala za čtvrtletí ztrátu 0,25 USD na akcii a tržby 7,67 milionu USD, čímž zaostala za odhady. Tržby meziročně klesly z 19,22 milionu USD.
Recursion Pharmaceuticals (RXRX - Free Report) came out with a quarterly loss of $0.25 per share versus the Zacks Consensus Estimate of a loss of $0.23. This compares to a loss of $0.41 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -8.70%. A quarter ago, it was expected that this biotechnology company would post a loss of $0.3 per share when it actually produced a loss of $0.22, delivering a surprise of +26.67%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Recursion Pharmaceuticals, which belongs to the Zacks Medical - Biomedical and Genetics industry, posted revenues of $7.67 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 46.77%. This compares to year-ago revenues of $19.22 million. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Recursion Pharmaceuticals shares have lost about 19.1% since the beginning of the year versus the S&P 500's gain of 13%.
What's Next for Recursion Pharmaceuticals?While Recursion Pharmaceuticals has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Recursion Pharmaceuticals was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.24 on $13.1 million in revenues for the coming quarter and -$0.90 on $54.08 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Biomedical and Genetics is currently in the top 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Lexicon Pharmaceuticals (LXRX - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.
This drugmaker is expected to post quarterly loss of $0.06 per share in its upcoming report, which represents a year-over-year change of -700%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Lexicon Pharmaceuticals' revenues are expected to be $6.14 million, down 78.7% from the year-ago quarter.
