JP Morgan has upgraded Recursion (RXRX.US) to "overweight" rating, and the core pipeline REC-4881 is expected to become a best-selling drug.

JPMorgan Chase has upgraded the rating of Recursion Pharmaceuticals (RXRX.US) from "Neutral" to "Overweight," citing the potential of their core asset REC-4881 to become a "blockbuster" level product. In addition, the firm has also raised Recursion's target price from $10 to $11. JP Morgan analyst Priyanka Grover pointed out that REC-4881 is currently in mid-stage trials for the treatment of familial adenomatous polyposis (FAP), a genetic disease, and peak sales in the US market alone could exceed $1 billion, with a 60% success probability. Furthermore, she emphasized the potential of the company's second advanced candidate drug, REC-617, a oral CDK7 inhibitor showing anti-tumor potential in platinum-resistant ovarian cancer treatment. Clinical development for this indication is progressing smoothly. Grover wrote, "These clinical results and collaborations with pharmaceutical companies further validate Recursion's AI-driven R&D pipeline, which has already brought in over $500 million in milestone payments." As of the close of trading on Wednesday, Recursion's stock rose by 11.43% to $4.68.