JPMorgan Upgrades Recursion Pharmaceuticals, Inc. (RXRX) on FAP Treatment Prospects

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) is one of the best debt-free penny stocks to buy right now. On December 17, JPMorgan upgraded Recursion Pharmaceuticals (NASDAQ:RXRX) to an Overweight from Neutral and raised the price target to $11 from $10.

The upgrade follows promising clinical trials evaluating the MEK 1/2 inhibitor REC-4881 for the treatment of Familial Adenomatous Polyposis (FAP). The TUPELO trial showed that 75% of evaluable patients showed a significant reduction in total polyp burden.

“The durable polyp burden reduction demonstrated by REC-4881—especially the sustained effect seen at Week 25, 12 weeks after completing therapy—is highly encouraging for the FAP community,” said Jessica Stout, D.O., Assistant Clinical Professor, University of Utah School of Medicine, and Principal Investigator of the TUPELO study.

According to JPMorgan, the company is staring at a tremendous opportunity with REC-4881 with estimated peak sales of more than $1 billion. Additionally, the investment company has touted the company’s other candidate drug, REC-617, a CDK7 inhibitor showing early anti-tumor activity in platinum-resistant ovarian cancer.

The positive clinical trials support Recursion’s long-term prospects, as the company has generated over $400 million in milestone payments from pharmaceutical partnerships.

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) is a clinical-stage company that uses a combination of artificial intelligence (AI), automation, and experimental biology to accelerate the discovery and development of new drugs.

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Disclosure: None. This article is originally published at Insider Monkey.