Recursion Pharmaceuticals, Inc., a clinical-stage biotechnology company, engages in the decoding biology and chemistry by integrating technological innovations across biology, chemistry, automation, data science, and engineering to industrialize drug discovery in the United States and the United Kingdom. The company develops REC-4881, which is in Phase 1b/2 clinical trial to treat familial adenomatous polyposis; REC-617, which is in Phase 1/2 clinical trial to treat advanced solid tumors; REC-1245, which is in Phase 1/2 clinical trial to treat biomarker-enriched solid tumors and lymphoma; REC-3565 that is in Phase 1/2 for the treatment of relapsed or refractory B-cell malignancies; and REC-4539, a reversible, CNS penetrant, orally bioavailable, and potential best-in-class inhibitor of LSD1 for the treatment of solid tumors and hematology oncology. Its preclinical stage product includes REC-7735 for the treatment of HR+ breast cancer; and REC-102 for the treatment of hypophosphatasia. The company has collaboration and agreement with Roche & Genentech; Sanofi; Bayer AG; Tempus; and Takeda Pharmaceutical Company Limited. Recursion Pharmaceuticals, Inc. was incorporated in 2013 and is headquartered in Salt Lake City, Utah.
Recursion Pharmaceuticals reported a wider-than-expected loss and a sharp revenue decline for the second quarter of 2026. The company posted a loss of 25 cents per share, missing the Zacks Consensus Estimate of a loss of 23 cents, while total revenues fell 60% year over year to $7.67 million, well below the $14 million consensus. The revenue drop was driven by lower collaboration income from Roche and its subsidiary Genentech following the completion of certain project phases in the prior-year period. Recursion ended the quarter with $556.8 million in cash and equivalents, down from $665.2 million at the end of March, and expects its reserves to fund operations into early 2028. Shares fell 4.2% on the results and are down 22.5% year to date.
Cathie Wood's Ark ETF Holds Over $50 Million in Recursion Pharmaceuticals
Cathie Wood's Ark Genomic Revolution ETF holds more than $50 million worth of Recursion Pharmaceuticals stock, making the $1.8 billion AI-driven drug discovery company a notable position beyond the fund's top 10 holdings. Recursion uses robotics and computer vision to run millions of cell experiments weekly and has seven drugs in clinical stages, with candidate REC-4881 showing positive proof-of-concept data and further results expected in the first half of 2027. The company has partnerships with Bayer, Roche Holding, and Nvidia, and forecasts sufficient cash to operate through early 2028 without additional financing. Recursion generates limited revenue from collaborations and has no marketed drugs, making it a high-risk, high-reward speculative investment in a competitive AI drug-discovery field.
Recursion Pharmaceuticals and Sarepta Therapeutics remain unattractive despite price drops
Recursion Pharmaceuticals and Sarepta Therapeutics have underperformed this year and still do not merit investment, according to an analysis. Recursion Pharmaceuticals, an AI-driven drugmaker founded in 2013, has no products on the market and none in late-stage studies, while facing growing competition in AI drug discovery. Sarepta Therapeutics saw two patient deaths last year linked to its Elevidys therapy for Duchenne muscular dystrophy, leading to a restricted label and a boxed warning for liver injury; the company is testing an immunosuppressant to mitigate risks, but Elevidys remains central to its prospects and vulnerable to new competitors. Both stocks carry significant clinical and regulatory risks that make them unattractive for most long-term investors.
Recursion Pharmaceuticals gains 19% on ARK Investment purchase and clinical progress
Recursion Pharmaceuticals saw its stock rise roughly 19% over the past month after Cathie Wood's ARK Investment bought 260,000 shares on June 24. The clinical-stage biotechnology company, which builds an AI-native drug discovery platform, highlighted progress in its fiscal first-quarter 2026 earnings, including early safety data for cancer drug REC-1245 and strong Phase 2 results for REC-4881 that prompted FDA talks toward approval. Revenue fell to $6.5 million from $14.7 million a year ago due to a completed Roche partnership phase, but net loss narrowed to $117.5 million from $202.5 million. Analysts expect more than 76% upside from current levels.
Zacks Highlights Autolus, NextCure, and Recursion as Oncology Stocks to Watch
Zacks Investment Research identifies Autolus Therapeutics, NextCure, and Recursion Pharmaceuticals as three cancer-focused stocks worth evaluating amid accelerating oncology innovation. Autolus, a commercial-stage company, markets the CAR-T therapy Aucatzyl for relapsed or refractory B-cell acute lymphoblastic leukemia and has guided 2026 net product revenues of $120-$135 million. NextCure is advancing two lead antibody-drug conjugate programs, including SIM0505, which showed a 55% objective response rate in heavily pretreated gynecologic cancers in early data. Recursion Pharmaceuticals, a clinical-stage TechBio company, is developing a pipeline of precision oncology candidates, with its most advanced asset REC-1245 showing encouraging early safety and pharmacokinetic data. All three stocks carry a Zacks Rank #2 (Buy).
Dyne Therapeutics edges out Recursion Pharmaceuticals as the preferred speculative biotech buy for 2026
Dyne Therapeutics gets the nod over Recursion Pharmaceuticals as the better buy among development-stage pharma stocks in 2026, according to an analysis by The Motley Fool. Dyne, with a $3.7 billion market cap and no revenue, is preparing its first Duchenne muscular dystrophy treatment for a potential market entry in early fiscal 2027, with a second product expected in 2028, and analysts project sales could surpass $1 billion by 2030. Recursion, a $2 billion market cap company, generated $74.7 million in fiscal 2025 revenue from partnerships but saw a net loss of nearly $645 million, and its own product revenue is seen as years away despite a recent clinical proof of concept for its REC-4881 treatment. Both companies carry high risk, but Dyne appears closer to bringing a treatment to market.
Moderna vs. Recursion: Which Cutting-Edge Pharma Stock Is a Better Buy in 2026?
Moderna is favored over Recursion Pharmaceuticals as the better buy in 2026, according to an analysis by The Motley Fool. Moderna reported fiscal 2025 revenue of more than $1.9 billion, a 40% decline, with a net loss of roughly $2.8 billion, while Recursion generated approximately $74.7 million in revenue, up 27%, but posted a net loss of nearly $645 million. Moderna trades at a price-to-sales ratio of 12.9 times versus Recursion's 26.8 times, and the analysis highlights Moderna's proven mRNA platform with 25 development candidates across 35 programs, expecting modest sales growth to near $2.1 billion in fiscal 2026. Recursion, still in the development phase, anticipates an 11% revenue decline in fiscal 2026 due to lower milestone payments, though it achieved a first clinical proof of concept with its REC-4881 treatment. The conclusion points to Moderna's established track record despite a current sales lull, while Recursion's AI-driven model remains unproven.
AI Is Transforming Drug Discovery, Opening a Trillion-Dollar Biotech Opportunity
Artificial intelligence is reshaping drug discovery by cutting development timelines from years to weeks, targeting a pipeline where 90% of candidates fail to reach approval. Eli Lilly's tirzepatide franchise generated $36.5 billion in 2025 revenue, a 215% increase, while Novo Nordisk's GLP-1 portfolio reached $34.6 billion. Schrodinger's physics-based simulation software serves 18 of the world's 20 largest pharma companies and posted 12% revenue growth in Q1 2026. AI is particularly suited to peptide-based medicines, enabling faster discovery and more precise molecular design. Investors can gain exposure through established leaders like Eli Lilly and Novo Nordisk, or through AI-focused platforms such as Schrodinger and Recursion Pharmaceuticals.
Recursion Pharmaceuticals vs. Summit Therapeutics: Which Healthcare Stock Is a Better Buy in 2026?
Recursion Pharmaceuticals and Summit Therapeutics present contrasting investment cases in the biotech sector, with Recursion leveraging an AI-driven platform across multiple partnerships while Summit bets heavily on a single oncology drug candidate. Recursion reported fiscal 2025 revenue of nearly $74.7 million, a 26.9% year-over-year increase, but posted a net loss of close to $644.8 million and negative free cash flow of nearly $378.3 million. Summit generated no revenue in fiscal 2025 and recorded a net loss of approximately $1.1 billion, driven by late-stage trials for its lead candidate ivonescimab, with negative free cash flow of close to $240.2 million. Recursion trades at a price-to-sales ratio of 19.3, while Summit has no such ratio due to a lack of product sales. The analysis favors Recursion for its diversified client base and smaller loss, citing Summit's high concentration risk on a single drug and partnership.
Recursion Pharmaceuticals and Fiverr: Two Beaten-Down AI Stocks for Contrarian Investors
Recursion Pharmaceuticals and Fiverr are two beaten-down artificial intelligence stocks that contrarian investors may want to consider. Recursion Pharmaceuticals is an AI-focused biotech aiming to revolutionize drug discovery, but it has no approved products and faces competition from larger pharmaceutical companies; its candidate REC-4881 for familial adenomatous polyposis has shown promise in clinical trials. Fiverr, a freelancer platform, is shifting its strategy toward complex projects worth $1,000 and more, even as revenue and active buyers decline, while net income improved to $0.23 per share from $0.02 a year ago. Both stocks carry significant risk but could deliver solid long-term returns if their strategies succeed.
Recursion Pharmaceuticals Advances AI-Driven Drug Pipeline with First Clinical Proof of Concept
Recursion Pharmaceuticals, a clinical-stage TechBio company, has reported its first clinical proof of concept from REC-4881, an allosteric MEK 1/2 inhibitor targeting familial adenomatous polyposis, showing significant reductions in precancerous polyps. The company is now working with the U.S. Food and Drug Administration to determine next steps, with updates expected in the second half of 2026. Recursion’s pipeline includes five wholly owned programs, with key milestones anticipated over the next 12 to 18 months, including REC-1245, an RBM39 degrader in Phase 1 for solid tumors and lymphomas that was discovered and advanced to human testing in about 18 months using its AI platform. The company ended the first quarter with $665 million in cash equivalents, reduced cash operating expenses by 30% year-over-year, and expects full-year cash operating expenses below $390 million, with partnerships with Sanofi and Roche generating more than $500 million in inflows. Analysts rate the stock a Moderate Buy with an average target price of $6.64, implying 111.47% upside potential.