JPMorgan upgraded Recursion Pharmaceuticals (NASDAQ:RXRX) to Overweight from Neutral on December 17, raising its price target to $11 from $10.
The upgrade followed clinical trial results for the MEK 1/2 inhibitor REC-4881, which is being evaluated for Familial Adenomatous Polyposis (FAP). In the TUPELO trial, 75% of evaluable patients showed a significant reduction in total polyp burden.
"The durable polyp burden reduction demonstrated by REC-4881—especially the sustained effect seen at Week 25, 12 weeks after completing therapy—is highly encouraging for the FAP community," said Jessica Stout, D.O., Assistant Clinical Professor at the University of Utah School of Medicine and Principal Investigator of the TUPELO study.
JPMorgan stated that the company faces a tremendous opportunity with REC-4881, estimating peak sales could exceed $1 billion. The investment firm also highlighted another candidate drug, REC-617, a CDK7 inhibitor showing early anti-tumor activity in platinum-resistant ovarian cancer.
Recursion Pharmaceuticals has generated over $400 million in milestone payments from pharmaceutical partnerships. The company is a clinical-stage entity that uses artificial intelligence, automation, and experimental biology to accelerate drug discovery and development.