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Recursion Pharma Technology Platform Could 'Disrupt' Traditional Drug Discovery, KeyBanc Says

05/11/2021 06:53

10:48 AM EDT, 05/11/2021 (MT Newswires) -- Recursion Pharmaceuticals (RXRX) could become the technology platform for drug companies to find new therapies backed by its supercomputer, KeyBanc Capital Markets said Tuesday.

The company has developed machine learning software capable of generating insights based on billions and billions of images of healthy and diseased human cells produced by its robotic laboratory, analyst Donald Hooker said in the note. It has used the machine-learning platform to initiate 37 drug development programs, four of which have reached clinical trials.

"We see significant potential upside to our RXRX model from the company evolving into a drug discovery technology platform for the broader biopharma industry," Hooker said. It could "disrupt" traditional drug discovery.

In August last year, RXRX secured a 5-year research collaboration with German drug maker Bayer that could generate upwards of over $1 billion of potential milestones.

Hooker started coverage of Recursion Pharmaceutical with an overweight rating and a price target of $36 per share.

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