Recursion Pharmaceuticals stock coverage resumed at Morgan Stanley

Published 03/07/2025, 10:08
Recursion Pharmaceuticals stock coverage resumed at Morgan Stanley

Investing.com - Morgan Stanley (NYSE:MS) has resumed coverage of Recursion Pharmaceuticals (NASDAQ:RXRX) with an Equalweight rating and a $5.00 price target. According to InvestingPro data, the stock currently trades near its Fair Value, with analyst targets ranging from $4 to $10. The company maintains a FAIR overall financial health score, though it’s currently not profitable.

The coverage follows Recursion’s recent pipeline prioritization announced during its first quarter 2025 earnings update, which included discontinuation of several drug candidates: REC-994 for cerebral cavernous malformation, REC-2282 for neurofibromatosis type 2, and REC-3964 for C. difficile infection. InvestingPro analysis reveals the company holds more cash than debt on its balance sheet, with a healthy current ratio of 4.11, though it’s rapidly burning through its cash reserves.

Recursion’s pipeline now focuses on four clinical-stage programs, with MEK1/2 inhibitor REC-4881 for familial adenomatous polyposis (FAP) becoming the company’s lead asset. Initial Phase Ib/II TUPELO trial data for REC-4881 was recently presented at the Digestive Disease Week conference.

The early FAP trial results showed promise, with six efficacy-evaluable patients achieving a median polyp reduction of 43%, and five of those six patients experiencing approximately 30%-80% polyp reduction through 12 weeks of treatment. Safety data from 19 evaluable patients indicated mainly mild adverse events, though some grade 3 treatment-related adverse events were noted.

Morgan Stanley expects additional safety and efficacy data for REC-4881 from the TUPELO study, as well as Phase I monotherapy data from the Phase I/II ELUCIDATE study of REC-617 in advanced solid tumors in the second half of 2025. With revenue growth of 29.32% in the last twelve months, investors seeking deeper insights can access comprehensive analysis and 8 additional key ProTips through InvestingPro’s detailed research report.

In other recent news, Recursion Pharmaceuticals has released its financial and strategic developments. The company held its 2025 annual meeting of stockholders, where all proposals were approved, including the election of three Class I directors and the ratification of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year. Additionally, Morgan Stanley adjusted its price target for Recursion Pharmaceuticals from $8.00 to $5.00, maintaining an Equalweight rating, following the company’s pipeline prioritizations and cost reductions. In a significant technological advancement, Recursion, in collaboration with MIT, released an open-source AI model named Boltz-2, which promises to enhance the speed and accuracy of drug discovery. This model is expected to facilitate large-scale virtual screening by being over 1,000 times faster than traditional methods. Furthermore, Recursion filed a prospectus supplement to register for resale approximately 4.26 million shares of its Class A common stock, issued to Tempus Labs in lieu of annual license fees. These developments reflect Recursion’s ongoing efforts to leverage AI in drug development and maintain regulatory compliance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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