JPMorgan has upgraded Recursion Pharmaceuticals (RXRX.US) from "Neutral" to "Overweight," citing the blockbuster sales potential of its core asset, REC-4881. The bank also raised its price target for Recursion from $10 to $11.
Analyst Priyanka Grover highlighted that REC-4881, currently in mid-stage trials for treating familial adenomatous polyposis (FAP), could achieve peak sales exceeding $1 billion in the U.S. alone, with a 60% probability of success.
Additionally, Grover emphasized Recursion’s second-most advanced candidate, REC-617, an oral CDK7 inhibitor showing antitumor potential in platinum-resistant ovarian cancer. Clinical development for this indication is progressing steadily.
"These clinical outcomes and partnerships with pharmaceutical firms further validate Recursion’s AI-driven pipeline, which has already generated over $500 million in milestone payments," Grover noted.
Recursion’s stock closed up 11.43% at $4.68 on Wednesday.
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