Gil Blum, an analyst from Needham, reiterated the Buy rating on Recursion Pharmaceuticals (RXRX – Research Report). The associated price target is $15.00.
Gil Blum’s Buy rating for Recursion Pharmaceuticals is based on various considerations. First, Blum acknowledges the strategic significance of Recursion’s recent partnership with Tempus Labs, which grants Recursion access to Tempus’s proprietary oncology data. This deal, which is worth $160 million in cash or equity spanning five years, is expected to significantly enhance Recursion’s multifaceted data landscape. The company’s near-term financial prospects are also positively influenced by the financial contributions it receives from its collaborators.
The second part of Blum’s assessment centers around Recursion’s collaboration with Bayer. The partnership is set to concentrate on precision oncology, with up to seven programs being considered for a total consideration of approximately $1.5 billion. Furthermore, Recursion’s developmental pipeline remains on course, with topline CCM results anticipated in the second half of 2024. The company’s robust financial status, with $387M in cash as of the third quarter of 2023 and an expected increase in expenditure through 2024 as it amplifies its platform investments, also supports the Buy rating. However, Blum has slightly lowered the target to $15 due to minor model adjustments.
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Recursion Pharmaceuticals (RXRX) Company Description:
Recursion Pharmaceuticals Inc is a clinical-stage biotechnology company. It is decoding biology by integrating technological innovations across biology, chemistry, automation, data science, and engineering, with the goal of radically improving the lives of patients and industrializing drug discovery.
Read More on RXRX:
- Bayer and Recursion Focus Research Collaboration on Oncology
- Recursion Announces Data Collaboration Deal with Tempus, Top 50 Supercomputer Ambition Powered by NVIDIA, and Updated Focus of Collaboration with Bayer to Precision Oncology
- Recursion Provides Business Updates and Reports Third Quarter 2023 Financial Results
- Cathie Wood’s ARK Investment bought 221K shares of Recursion Pharmaceuticals
- Recursion to Participate in Upcoming Investor Conference
