Recursion Pharmaceuticals Inc. (RXRX)
NASDAQ
Biotech
AI Drug Discovery
Investment Thesis
Recursion is building the operating system for drug discovery. They image millions of cellular experiments using automated microscopy, then use AI to identify disease-relevant patterns invisible to human eyes. Their partnership with NVIDIA (BioNeMo), Bayer, and Roche validates the approach. The promise: 10× faster drug discovery at 10× lower cost.
Key Drivers
- Proprietary Dataset: 25+ PB of biological imaging data — the training set no competitor can replicate.
- NVIDIA Partnership: BioNeMo foundation models trained on Recursion’s data create shared infrastructure.
- Pipeline at Scale: 40+ programs, mostly early-stage, creating optionality across oncology, rare disease, and neurology.
Risk Factors
- Clinical Translation: AI-discovered drugs still face Phase 2/3 failure rates similar to traditional drugs.
- Long Commercialisation Horizon: Revenue from pipeline programs is years away.