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JPMorgan Upgrades Recursion Pharma on Drug Success
1 Jan
Summary
- Cathie Wood's ARK Investment acquired 755,000 shares recently.
- JPMorgan upgraded Recursion Pharma to Overweight with a higher price target.
- New drug REC-4881 shows effectiveness and large market potential.
Recursion Pharmaceuticals (NASDAQ:RXRX) has garnered attention with a substantial share acquisition by Cathie Wood's ARK Investment, which purchased 755,000 shares on December 19, 2025. This investment underscores growing institutional interest in the clinical-stage biotechnology firm.
Further bolstering confidence, JPMorgan upgraded Recursion Pharmaceuticals on December 17, 2025, moving from 'Neutral' to 'Overweight' and raising its price target. The firm highlighted the demonstrated solid and lasting effectiveness of REC-4881 in treating familial adenomatous polyposis, a condition with an unexpectedly large addressable market offering significant revenue potential.
JPMorgan's analysis indicates a 60% chance of success for REC-4881, with projected peak revenues exceeding $1 billion. Additionally, the CDK7 inhibitor REC-617 has shown early anti-tumor efficacy in platinum-resistant ovarian cancer. The company has maintained its 2025 expense forecast below $450 million and its 2026 forecast below $390 million, ensuring operational sustainability through 2027 without new funding.
