Trump announces trade deal with EU following months of negotiations
On Tuesday, BofA Securities revised the price target for Recursion Pharmaceuticals (NASDAQ:RXRX) to $8.00 from the previous $10.00, while keeping a Neutral rating on the company’s shares. The stock has fallen nearly 17% in the past week and is currently trading at $4.76, significantly below its 52-week high of $12.36. Following the announcement of the first-quarter financial results for 2025, Recursion’s stock experienced a 16.6% decline. The results included the deprioritization of four pipeline programs and the suspension of another clinical program.
Recursion presented preliminary phase 1b/2 data for REC-4881 in familial adenomatous polyposis at the Digestive Disease Week (DDW) conference. The early responses to REC-4881 are promising, but further studies are necessary to assess the treatment’s long-term efficacy and safety. According to InvestingPro data, the company faces profitability challenges with negative gross margins and is not expected to be profitable this year.
The company’s partnerships are reportedly advancing, with Recursion receiving an additional $7 million milestone payment from Sanofi (NASDAQ:SNY). This is part of a larger potential deal worth up to $300 million related to the program. Recursion’s current cash reserves amount to $509 million, which is expected to fund operations into mid-2027. InvestingPro analysis shows the company maintains a strong current ratio of 4.11, with liquid assets exceeding short-term obligations, though it’s burning through cash rapidly.
The recent merger with Exscientia has led BofA Securities to reassess the risks associated with Recursion’s platform. The firm has updated its financial model for Recursion, removing the deprioritized assets and adjusting operating expense expectations to reflect the more streamlined pipeline. For deeper insights into Recursion’s financial health and valuation metrics, investors can access comprehensive analysis through InvestingPro, which offers detailed research reports and additional ProTips for informed decision-making.
In other recent news, Recursion Pharmaceuticals reported its Q1 2025 financial results, missing both earnings per share (EPS) and revenue estimates. The company posted an EPS of -$0.5, slightly below the forecast of -$0.49, and revenue of $14.75 million, falling short of the expected $14.98 million. Despite these misses, Recursion maintains a strong cash position with $509 million, ensuring operations through mid-2027. The company has been focusing on strategic initiatives, including a merger with Excientia, which has streamlined operations and prioritized high-potential programs. Recursion has also been involved in partnerships, earning more than $450 million from collaborations to date. Analysts have shown interest in the company’s future milestones, including key clinical readouts and the initiation of new studies anticipated in 2025-2026. Furthermore, the firm’s ongoing partnerships with companies like Sanofi and Roche have been highlighted as significant contributors to its strategic growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.