Recursion Pharmaceuticals, Inc. (RXRX): The Best Performing Pharma Stock So Far in 2025?

Recursion Pharmaceuticals, Inc. (RXRX) has been making waves in the biotechnology sector, with its innovative drug discovery platform and promising pipeline. As we approach the midpoint of 2025, investors are wondering if RXRX is indeed the best performing pharma stock so far this year. Let's delve into the company's performance, pipeline, and future prospects to determine if RXRX deserves a spot on your investment radar.



RXRX's Impressive Performance in 2025

Recursion Pharmaceuticals has seen a remarkable surge in its stock price in 2025, with a year-to-date (YTD) return of over 100%. This impressive performance can be attributed to several factors, including:

1. Innovative Drug Discovery Platform: Recursion's use of AI and machine learning to revolutionize drug discovery has allowed the company to identify and develop promising drug candidates more efficiently than traditional methods. This platform has enabled Recursion to build an industry-leading pipeline of best-in-class and first-in-class therapeutic assets (Recursion, 2025).
2. High Unmet Need Indications: Recursion focuses on indications with high unmet need, such as oncology, rare diseases, and infectious diseases. By targeting these areas, the company can address significant market opportunities and potentially generate substantial revenue (Recursion, 2025).
3. Successful Clinical Trials: Recursion has achieved positive interim phase 1 data for REC-617, a selective CDK7 inhibitor, in advanced solid tumors. This includes a confirmed durable partial response in a heavily pre-treated patient population, as well as stable disease in four additional patients (Recursion, 2024).
4. Strategic Partnerships and Mergers: Recursion's combination with Exscientia, another AI-powered drug discovery and development company, has strengthened its position in the market. This merger allows Recursion to advance the industrialization of drug discovery more effectively (Recursion, 2024).

RXRX's Pipeline of Innovative Drug Candidates

RXRX's pipeline of innovative drug candidates, such as REC-617, REC-3565, and REC-4539, significantly contributes to its growth potential and market valuation by addressing high unmet needs in various therapeutic areas, leveraging advanced technology, and demonstrating promising clinical data. Here's how these drug candidates contribute to RXRX's growth potential and market valuation:

1. REC-617 (CDK7 inhibitor) for advanced solid tumors:
- REC-617 is a precision-designed, reversible, non-covalent small molecule CDK7 inhibitor with a favorable PK/PD profile (Recursion, Dec 2024).
- In a Phase 1/2 study (ELUCIDATE), REC-617 demonstrated a confirmed durable partial response (PR) in a patient with metastatic, platinum-resistant ovarian cancer, who had progressed following 4 lines of prior therapy (Recursion, Dec 2024).
- The drug was generally well-tolerated, with no discontinuations due to adverse events, and an MTD not yet reached.
- REC-617's potential in advanced solid tumors, along with its favorable safety profile, contributes to RXRX's growth potential and market valuation.
2. REC-3565 (MALT1 inhibitor) for B-cell malignancies:
- REC-3565 is a small molecule MALT1 inhibitor designed for multiple hematology indications, with a well-balanced molecule that avoids UGT1A1 inhibition, potentially reducing hyperbilirubinemia risk (Recursion, 2024).
- The total addressable population for REC-3565 is approximately 41,000 patients with relapsed/refractory CLL and B-cell lymphomas annually in the US and EU5 (Recursion, 2024).
- REC-3565's potential in B-cell malignancies, along with its unique design to minimize side effects, contributes to RXRX's growth potential and market valuation.
3. REC-4539 (LSD1 inhibitor) for small-cell lung cancer (SCLC) and acute myeloid leukemia (AML):
- REC-4539 is the first LSD1 inhibitor designed to be both CNS-penetrant and reversible, addressing an unmet need in SCLC patients with brain metastases (Recursion, 2024).
- The total addressable population for REC-4539 is approximately 45,000 patients with extensive-stage SCLC annually in the US and EU5 (Recursion, 2024).
- REC-4539's potential in SCLC and AML, along with its unique properties that distinguish it from other LSD1 inhibitors, contributes to RXRX's growth potential and market valuation.

Conclusion: RXRX's Future Prospects

Recursion Pharmaceuticals' strong performance in 2025 can be attributed to its innovative drug discovery platform, high unmet need indications, successful clinical trials, and strategic partnerships. The company's pipeline of innovative drug candidates, such as REC-617, REC-3565, and REC-4539, contributes to its growth potential and market valuation. As RXRX continues to advance its pipeline and explore strategic partnerships, investors should keep a close eye on this biotechnology company, as it has the potential to be a top performer in the pharma sector.