Recursion Pharmaceuticals

Executive Summary

Recursion Pharmaceuticals is a clinical-stage TechBio company that leverages its proprietary Recursion Operating System—integrating high-throughput cellular imaging, robotics, and AI foundation models—to industrialize drug discovery. The company has built one of the largest biological datasets (>50 petabytes), enabling it to decode biology and identify novel drug candidates at unprecedented scale. Despite several pipeline setbacks, including the termination of Phase 2 trials for REC-4881 (AXIN1) and REC-3964 (C. diff), Recursion continues to advance multiple clinical programs. The most mature active program is REC-4881 for Familial Adenomatous Polyposis (FAP) in a Phase 1/2 trial (NCT05552755) with expected completion in Q3 2026. Other ongoing trials include REC-1245 for advanced solid tumors, GTAEXS617 for multiple indications, and EXS73565 for B-cell malignancies, all in early stages. The company’s platform potential is underscored by partnerships and its focus on AI-driven target discovery, though clinical execution risk remains high given the high rate of trial terminations. Recursion’s ability to deliver proof-of-concept data from its pipeline and secure new collaborations will be critical to its near-term valuation.

Upcoming Catalysts (preview)

• Q3 2026REC-4881 Phase 1/2 data readout for Familial Adenomatous Polyposis45% success
• H2 2026REC-1245 Phase 1/2 interim efficacy and safety data35% success
• Q4 2026New AI platform partnership or licensing deal30% success