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RXRX.NASDAQ
Recursion Pharmaceuticals
Health Care · Biotechnology

Biotechnology company using AI and cellular imaging to discover novel drugs through proprietary technology platform.

HQ: United StatesListed: United States

Historical AI Opinions

Audit every published iPulse AI forecast batch and immutable historical research document for Recursion Pharmaceuticals.

Recursion Pharmaceuticals Inc (RXRX.NASDAQ) AI OPINIONS & ADVISOR ANALYSIS

Read the selected AI Advisor’s complete report, scenarios and forecast. Select Consensus for its investment thesis and a preview of advisor weights. Eligible access unlocks all 14 advisor reports and comparisons.

Updated on 20 September 2026Deep analysis 20 September 2026

25 min readAudit All Past Forecasts
AI Researcher
Universal Investor AI advisor icon
GPT-6 Astra

Universal Investor AI

The Polymath Framework

Model rating

Neutral

5-Year Return Est.

+20.4%

RXRX.NASDAQ does not currently pay dividends

Historical prices and published forecast

Historical prices and published forecastObserved prices and the selected advisor's published projection share a split-adjusted price basis. Prices after the forecast start are later observations, not information known at publication. Forecasts are uncertain. Values in USD.0.537.5614.621.6428.68Sep 2021Mar 2024Sep 2026Mar 2029Sep 2031Forecast starts
  • Observed price
  • Published advisor forecast
Observed prices and the selected advisor's published projection share a split-adjusted price basis. Prices after the forecast start are later observations, not information known at publication. Forecasts are uncertain. Values in USD.
Quarterly Events ForecastPrice targets, total returns and complete scenario reasoning

Forecast prices in USD. Returns are cumulative from the forecast anchor. Swipe horizontally to read every column.

QuarterForecastTotal returnScenario
$4.29+12.0%

November's scheduled FAP update sustains the existing efficacy signal, while regulatory discussions clarify the next development step. Clinical option value rises and crowded shorts amplify the response, although neither approval nor an inexpensive registration pathway is established. (ir.recursion.com)

$3.95+3.0%

Investors translate the FAP development plan into enrollment, follow-up and manufacturing costs. The clinical narrative remains intact, but a more explicit funding requirement offsets scientific progress and shifts valuation attention from platform potential toward diluted per-share economics.

$4.18+9.2%

Early safety and pharmacokinetic updates from REC-617 and REC-3565 support continued development without establishing efficacy. Portfolio breadth modestly improves risk-adjusted value, while evidence of spending discipline reassures investors that additional clinical information remains affordable. (ir.recursion.com)

$3.56-7.2%

A substantial equity financing extends runway before liquidity becomes urgent. The transaction protects clinical execution, but its discount and expanded share count expose the difference between financing a valuable pipeline and creating attractive returns for existing shareholders.

$3.84+0.3%

The enlarged cash buffer allows investors to refocus on REC-7735 dose escalation and FAP enrollment. Acceptable emerging tolerability preserves development options, and the removal of immediate financing uncertainty produces a partial recovery without requiring breakthrough efficacy.

$3.46-9.8%

Annual reporting shows that broader clinical activity absorbs much of the earlier integration savings. Investors reduce estimates of financing-free runway, and the share price retreats as recurring expenditure proves more persistent than the capital-light AI narrative suggests.

$3.73-2.5%

A projected Sanofi development milestone produces cash and external validation of candidate quality. The receipt does not establish recurring profitability, but it reduces near-term funding needs and supports higher risk-adjusted values for the remaining partnered discovery portfolio.

$3.47-9.4%

FAP recruitment and longer-duration assessments progress more slowly than optimistic models anticipated. Additional trial time raises costs and delays potential commercialization, trimming present value even though the available evidence does not require abandonment of the program.

$3.82-0.3%

Accumulating FAP follow-up supports persistence of the treatment effect and clarifies dosing feasibility. Investors modestly increase success probabilities, while reusable clinical infrastructure helps contain incremental costs; the repricing reflects reduced uncertainty rather than an assumed regulatory approval.

$3.59-6.3%

Management prepares another funding tranche as registrational work becomes more expensive. Better clinical evidence supports financing access, but investors mark down per-share outcomes to incorporate additional issuance and the cash reserve required to complete the next development stage.

$3.91+2.2%

A partnered program approaches clinical development, making future milestone economics more tangible. External capital assumes part of the downstream spending burden, and investors reward the resulting improvement in risk sharing without treating headline partner sales as Recursion revenue.

$3.72-3.0%

Clinical supply, analytical validation and trial-support commitments increase ahead of the next FAP evidence package. These expenditures are necessary to preserve commercial potential, but they reduce cash available to equity holders and temporarily outweigh incremental pipeline progress.

$4.16+8.7%

A projected controlled FAP evidence update supports continued registrational investment. The central hypothesis becomes more credible, lifting the asset's probability-weighted value, while unresolved long-term tolerability and endpoint requirements prevent investors from pricing a fully commercial franchise.

$3.83-0.0%

The remaining follow-up schedule and regulatory preparation costs temper enthusiasm after the data-driven rally. Investors extend the assumed path to meaningful product cash flow, increasing the discount applied to FAP while leaving the underlying clinical thesis intact.

$4.14+8.0%

Broader partner development activity makes collaboration receipts less dependent on a single discovery deliverable. Improved cash contribution supports a measured valuation recovery, although contractual royalty splits and continued internal research prevent the business from acquiring software-like margins.

$3.89+1.5%

Recursion increases expenditure on registration readiness and selective commercial planning while maintaining its discovery platform. Investors resist capitalizing prospective revenue before authorization, and the widening gap between preparation costs and realized income pressures the share price.

$4.28+11.7%

Longer-duration FAP evidence strengthens confidence that observed benefit can support a registration package. The projected improvement raises conditional approval odds and asset value, but investors continue reserving for regulatory uncertainty, additional funding and a gradual specialist-market launch.

$4.11+7.2%

A final modeled funding tranche and accumulated stock compensation bring the ownership denominator closer to the forecast assumption. Scientific progress continues, but dilution absorbs part of the enterprise-value increase and keeps the share-price response below headline pipeline appreciation.

$4.43+15.8%

FAP filing readiness becomes more credible, and selected oncology programs retain development value after portfolio pruning. Investors reward the concentration of resources behind stronger assets, lifting risk-adjusted equity value without assuming that commercial approval has already occurred.

$4.61+20.4%

The market settles near the modeled balance between stronger clinical assets and a substantially larger share count. Approximately $3.7 billion of equity value supports a price near $4.61, leaving five-year shareholder appreciation modest despite substantial enterprise progress.

1. Investment Thesis — Base Case

Recursion's platform produces more credible medicines, but external capital captures much of the improvement. The base case assumes continued FAP development, selective oncology progress and partner milestones, without treating approval or profitability as settled. By September 2031, my risk-adjusted valuation allocates $1.8 billion to FAP, $1.4 billion to oncology and partnerships, $0.2 billion to residual platform options and $0.3 billion to net cash. These assumptions are net of remaining development costs, not company guidance. Factor impacts are non-additive sensitivities. Modest per-share returns do not clearly compensate for greater fragility than cash-generative healthcare alternatives.

  • Assume $1 billion cumulative equity funding and roughly 800 million diluted shares by September 2031, including compensation.
  • At roughly $3.7 billion equity value, that denominator supports approximately $4.61 per share, not today's share-count arithmetic.
  • This implies approximately 20% cumulative appreciation, or 4% annualized, despite an approximately 80% increase in aggregate equity value.

2. Scenarios & Signals

2.1. Bull Case

Clinical proof arrives before the funding penalty compounds. REC-4881 secures a workable registration route and ultimately approval, while differentiated oncology data attract a substantial licensing payment. Those developments replace speculative platform value with product economics and reduce the number of shares needed to finance growth. Assuming both stronger asset values and less dilution than the base case, a September 2031 price around $9–$12 becomes plausible; commercialization execution remains essential.

2.2. Bear Case

The lead medicine disappoints just as liquidity becomes binding. Weak confirmatory FAP results undermine asset value and investor confidence, while partner receipts fail to cover the laboratory's continuing expenses. Financing then occurs at distressed prices, or management sells valuable rights to preserve operations, creating a permanent per-share impairment rather than temporary volatility. Under that combined clinical and funding failure, a September 2031 price around $0.80–$1.50 is plausible despite surviving discovery programs.

2.3. Behavioral Alpha Signals

Sentiment, repricing cycle, crowd narrative, catalyst, and macro alignment.

Expected Volatility Regime

LowModerateHighExtreme

Greed and Fear Index

-100 Fear0+100 Greed
-25

Cycle Position

The reset is mostly complete and price drifts toward fair value.

EarlyAwareMomentumOvershootReversalCapit.StabilizeSTABILIZATION
Figure: Advisor position within the seven-stage market-recognition cycle. The highlighted point marks Stabilization.

What does Media Tell? (Crowd Consensus)

RXRX trades as a clinical binary carrying an AI premium: optimistic analysts anchor to platform validation, while short sellers anchor to financing. Around the September 18 close, the reported consensus target was $7.22, yet August 31 short interest represented roughly 35% of float. This disagreement is not settled conviction; it reflects incompatible assumptions about who captures eventual discovery value. (stockanalysis.com)

What Crowds Get Wrong? (Alpha/Value Gap)

No convincing valuation gap exists at $3.83: clinical optionality and financing risk largely offset. REC-4881 was in-licensed from Takeda; its FAP signal validates a biological hypothesis, not independently the economics of de novo AI discovery. My base model assumes roughly $1 billion eventual FAP peak sales and conditional late-stage approval odds of 60%, rather than capitalizing management's addressable-market claim. That distinction, plus future dilution, leaves insufficient prospective return to prefer RXRX over cash-generative healthcare alternatives. (ir.recursion.com)

When will Value Gap Repricing Happen? (Repricing Catalyst)

A 2027 financing priced against the post-November FAP development plan is the likeliest convergence catalyst. It would force investors to compare clearer clinical asset value with the actual share count needed to fund registration. The first observable sign is upward pipeline valuations without commensurate per-share target increases.

How is Asset Influenced by Macro Regime?

The September 16 Fed hike to 3.75%–4.00% puts the macro wind against RXRX through discount rates and equity-funding terms, not immediate medicine demand. Higher interest income on cash offers partial relief, but cannot offset the valuation sensitivity of distant, uncertain product cash flows. (federalreserve.gov)

3. Positive & Negative Factors, Risks & Opportunities

3.1. Base-Case Forces

Near-certain positive forces

Top Drivers / Tailwinds

Structural or operating forces that support this advisor thesis. These forces are treated as part of the base case (more than 60% probability of occurrence).

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Top Drivers / Tailwinds with asset-specific estimated impacts and thesis rationale
Driver / TailwindCategoryEst. stock-price impactEst. earnings impactWhy it matters
Fap's Treatment GAP Sustains ValueSector And Industry+35%+15%An enduring treatment gap, rather than AI branding, supports REC-4881's option value. I assign an 80% likelihood that FAP's lifelong procedural burden sustains recruitment and attractive potential reimbursement for a differentiated therapy. Observed polyp reductions support continued investment, while orphan-market concentration could eventually permit specialist commercialization without a mass-market selling infrastructure; approval is not assumed in this positive force. (ir.recursion.com)
Partner Milestones Finance Biological DICompetitive Positioning+30%+18%RXRX shareholders own drug rights and collaboration economics, not a software annuity. I assign an 85% likelihood that additional Sanofi and Roche milestones provide non-dilutive funding, following Genentech's first validated-target option. These payments and eventual royalties reduce Recursion's externally financed development burden; repeated partner selections can also increase the risk-adjusted value assigned to its proprietary discovery assets. (ir.recursion.com)
COST Discipline Extends Experimental RUNOperational Efficiency+22%+18%A smaller operating footprint gives Recursion more opportunities to produce investable evidence before refinancing. Management reduced FY2026 cash operating expense guidance to below $375 million, although some reported expense improvement reflects data-purchase timing rather than structural savings. I assign an 85% likelihood that genuine integration efficiencies persist, lowering the funding burden relative to an unrestructured business and preserving more clinical option value. (ir.recursion.com)
Robotics Makes Proprietary DATA ReusableInnovation And Product+18%+12%Recursion's defensible input is experimentally generated biology, not exclusive access to general-purpose AI. Its automated laboratories and reusable multimodal datasets allow successive models to interrogate previously financed experiments. I assign an 80% likelihood that this combination lowers selected discovery costs and improves candidate selection, supporting asset value and reducing expense per useful hypothesis without assuming improved clinical success rates. (recursion.com)

Near-certain negative forces

Top Frictions / Headwinds

Expected frictions that can slow, cap, or damage this advisor thesis. These forces are treated as part of the base case (more than 60% probability of occurrence).

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Top Frictions / Headwinds with asset-specific estimated impacts and thesis rationale
Friction / HeadwindCategoryEst. stock-price impactEst. earnings impactWhy it matters
NEW Capital Divides THE UpsideCapital Allocation-35%+0.0%Enterprise progress need not become equivalent progress per share. Management's financing-free runway reaches only early 2028, well short of this forecast horizon; I assign a 95% likelihood that equity issuance and stock compensation expand the ownership denominator. Financing preserves the programs but transfers part of their eventual value to new investors, depressing existing-share returns without directly reducing company earnings. (ir.recursion.com)
Clinical Evidence Still Needs ControlsRegulatory-25%-12%A promising single-arm result is not a registrational evidence package. The disclosed REC-4881 efficacy cohort contained only twelve evaluable patients, leaving durability, selection effects and chronic tolerability insufficiently resolved. I assign a 90% likelihood that controlled evidence and longer follow-up remain material requirements, extending expenditure and discounting timelines even if the medicine ultimately succeeds; outright clinical failure is a separate downside event. (ir.recursion.com)
THE Laboratory Consumes THE RunwayOperational Efficiency-22%-15%Recursion's cash finances experiments; it is not a distributable valuation floor. I assign a 95% likelihood that research, data access and clinical execution continue consuming substantial cash across this horizon. Investors already pay roughly $1.49 billion above June unrestricted cash before other obligations; ongoing losses erode residual equity value unless financed experiments create risk-adjusted assets faster than cash disappears. (ir.recursion.com)
Partners Retain MOST Commercial EconomicCompetitive Positioning-12%-6.0%Partner validation comes with an economic ceiling: Recursion does not retain every dollar generated by drugs discovered through collaborations. Roche economics include royalties reaching high single digits, while Sanofi offers tiered double-digit royalties. I assign a 90% likelihood that these contractual splits constrain earnings capture, making headline downstream sales opportunities substantially larger than the cash flows attributable to RXRX shareholders. (ir.recursion.com)

3.2. Risks & Opportunities

Plausible downside scenarios

Tail Risks

Less likely downside scenarios that could materially hurt the outcome if they occur.

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Tail risks with plausibility, asset-specific potential impact and scenario rationale
Tail scenarioChance of OccurringStock Price ImpactWhy plausible / what changes
FAP Fails ITS Confirmatory TEST35%-65%During 2027–2030, a controlled REC-4881 study could fail to reproduce clinically meaningful benefit, or longer exposure could reveal unacceptable tolerability. Either result would impair the lead franchise and weaken the platform-validation narrative simultaneously, while leaving discovery infrastructure costs largely intact. I assign less than 50% probability because the observed reductions provide a genuine biological signal, but the small, selected efficacy population cannot establish the reliability needed for a registration investment. (ir.recursion.com)
Funding Closes Before Clinical Proof30%-45%A financing shock during 2027–2029 could force a deeply discounted capital raise, emergency licensing or abandonment of valuable programs. The trigger would be less than twelve months of usable liquidity combined with delayed milestones and an unreceptive equity market, rather than ordinary dilution already included in the base case. Existing cash and established partners make this less likely than continued access, but a funding interruption could permanently transfer clinical upside away from current shareholders. (ir.recursion.com)

Plausible upside scenarios

Tail Opportunities

Less likely upside scenarios that could materially improve the outcome if they occur.

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Tail opportunities with plausibility, asset-specific potential impact and scenario rationale
Tail scenarioChance of OccurringStock Price ImpactWhy plausible / what changes
First FAP Approval Changes Category35%+140%A first REC-4881 approval during 2029–2031 would convert Recursion's most tangible clinical option into a commercial franchise. The trigger would be convincing confirmatory efficacy, acceptable chronic safety and an agreed regulatory endpoint, followed by authorization. Approval would support product revenue, reduce financing discounts and strengthen bargaining power across the portfolio. I keep this below 50% because the existing evidence remains small and uncontrolled, while the registration pathway is not yet settled. (ir.recursion.com)
A Partner BUYS Development RISK25%+65%An out-licensing agreement carrying at least $300 million upfront for an internally controlled oncology program during 2027–2029 would change the funding equation. The trigger would be differentiated human activity sufficient for a major pharmaceutical company to assume substantial development costs. Unlike routine discovery milestones, this transaction could displace an equity raise and establish an external asset valuation. Its probability remains limited because current early-stage programs have not yet established compelling comparative clinical efficacy. (recursion.com)

5. References & Context

Search behavior, retained evidence, supplied context, and response token details.
Researcher modeExternal search used

External web search was used. The retained search terms and consulted sources are shown below.

Context supplied to the model

Public-safe inputs retained with this immutable forecast publication.

  1. 01

    Market data

    inmemory_base_placeholders__latest_eod_close_price_with_stats_and_fundamentals__var1

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    Global context in this run

    Used

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    Fundamental data in this run

    Used

  4. 04

    Global context

    Standard global market and cross-asset context

  5. 05

    Subject context

    Equity-specific subject and market context

  6. 06

    Task framework

    Standard investment-forecast task guidelines

  7. 07
    Universal Investor AI advisor icon

    Advisor framework

    Universal Investor The Polymath

  8. 08

    Forecast output requested

    Equity Extended Investment Thesis (4 Quadrants and Alpha Asymmetry) + Pct Change Timeseries for Close Price with Rationale, (5Y Quarterly)

03

Global context snapshot

2026 Year-to-Date Global Market and World-Events Context Through September 20

Download Archived Snapshot

Coverage 2026-01-01 to 2026-09-20 · Knowledge cutoff 2026-09-20

January 1-September 20, 2026: monetary tightening, energy security, trade restrictions, AI financing and divergent growth; five leading market themes.

Fed raised rates to 3.75%-4.00%; ECB hike is in force and BOJ increase starts September 24. Markets through September 18, bitcoin through September 19.

Top 3 market shifts from 2026 Year-to-Date Global Market and World-Events Context Through September 20
Top 3 Market Shifts From FileDateStatus
Renewed monetary tightening amid persistent inflation2026-01-30ACTIVE POLICY REGIME
Iran/Hormuz conflict and wider energy-security disruption2026-02-28ONGOING
Tariff legal reset and strategic supply restrictions2026-02-20ACTIVE POLICY REGIME

Representative Sources of the Context File

And more sources from the retained context package.

02

Fundamental context

Income statement

9 fields

depreciationAndAmortization · ebit · ebitda · grossProfit · +5 more fields

Balance sheet

12 fields

cash · commonStockSharesOutstanding · longTermDebt · netDebt · +8 more fields

Cash flow

4 fields

capitalExpenditures · freeCashFlow · salePurchaseOfStock · totalCashFromOperatingActivities

annual: 2019-12-31–2025-12-31, 7 periods; quarterly: 2023-09-30–2026-06-30, 12 periods

Currencies cited: USD (quote USD; primary reporting USD; converted/valuation USD).

Search terms retained

  1. 1.site.recursion.com 2026 second quarter results cash REC-4881
  2. 2.site.ir.recursion.com September 2026 pipeline Recursion Pharmaceuticals
  3. 3.site.ir.recursion.com 2025 annual results 2026 cash runway
  4. 4.site.recursion.com "September" "2026" "REC-"
  5. 5.site.ir.recursion.com "REC-4881" "75%"
  6. 6.RXRX September 18 2026 analyst rating target short interest

Sources retained for this advisor

Original published forecast

Inspect the original revision and sealed receipt when a public record is available. Integrity verification is separate from forecast accuracy.