Recursion Pharmaceuticals (RXRX) Stock: CEO Sells $5.8 Million in Shares Following Exscientia Merger

TLDR

• Recursion Pharmaceuticals merged with Exscientia, another AI-driven drug discovery company, positioning itself as a potential biotech innovator
• The company has partnerships with major pharmaceutical firms including Sanofi and Roche to develop treatments for cancer and rare diseases
• Recursion posted a net loss of $649.1 million over the trailing 12 months with R&D expenses at $431.2 million against revenue of only $64.5 million
• Insiders sold 1,154,774 shares in the past six months with no purchases, while CEO Christopher Gibson sold 1,118,175 shares worth $5.87 million
• The stock declined 31% in 2024 and is down another 11% in 2025, with analysts setting price targets between $5.00 and $8.00

Recursion Pharmaceuticals completed a merger with Exscientia, combining two AI-focused drug discovery platforms. The deal has sparked conversation about the company’s position in biotech innovation.

The merger brings together complementary AI technologies. Both companies focus on using artificial intelligence to speed up drug development and reduce costs.

Recursion Pharmaceuticals, Inc., RXRX

CEO Chris Gibson has made ambitious claims about the platform’s capabilities. He stated the company could reduce drug discovery timelines from five or six years down to one or two years. He also projected cost reductions from hundreds of millions of dollars to just $10 million to $20 million.

Financial Performance Raises Concerns

The company’s financial picture tells a different story. Over the trailing 12 months, Recursion generated $64.5 million in revenue. However, R&D expenses hit $431.2 million during the same period.

The net loss reached $649.1 million. This represents a growing trend of increasing losses. To fund operations, the company has repeatedly issued new shares.

The share count has risen dramatically through stock offerings. This dilution puts downward pressure on the stock price. Existing shareholders see their ownership stakes reduced with each new offering.

Insider Activity and Institutional Moves

Insiders have been selling shares consistently. Over the past six months, nine insider transactions occurred. All nine were sales with zero purchases.

CEO Christopher Gibson sold 1,118,175 shares for $5.87 million. Chief R&D Commercial Officer Najat Khan sold 36,599 shares worth $202,172.

Institutional investors showed mixed signals. BlackRock added 4,864,474 shares in Q2 2025, a 20.7% increase worth $24.6 million. Vanguard Group added 3,783,201 shares, an 11.7% increase valued at $19.1 million.

Other major institutions reduced positions. State Street Corp removed 1,905,719 shares, a 14.6% decrease. ARK Investment Management cut 1,826,871 shares, reducing their position by 5.2%.

Partnerships and Clinical Pipeline

Recursion maintains partnerships with pharmaceutical giants Sanofi and Roche. These collaborations focus on developing treatments for cancer and rare diseases. The partnerships provide validation for the AI platform’s potential.

None of the company’s clinical trials have reached late-stage development yet. Without drugs in Phase 3 trials or near approval, revenue generation remains distant. The company continues to operate primarily on partnership funding and capital raises.

Needham issued a buy rating on September 11, 2025. Analyst Gil Blum set a price target of $8.00. Morgan Stanley analyst Vikram Purohit set a more conservative target of $5.00 on July 3, 2025.

Stock Performance and Market Reaction

The stock declined 31% in 2024. Through 2025, shares have dropped another 11%. The company’s market cap sits below $3 billion.

Nvidia’s 2023 investment in Recursion initially boosted the stock. The rally proved short-lived as the company’s financial reality set in. The chipmaker’s backing highlighted AI’s role in drug discovery but hasn’t translated to sustained stock gains.

Bank Pictet & Cie (Europe) AG added 1,630,000 shares in Q3 2025 worth $7.95 million. This represented a new position for the institution. The median analyst price target stands at $6.50.

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