Recursion Climbs After Positive Trial Data for FAP Drug
Phase 1b/2 results for its lead oncology asset, REC-4881, showed rapid and durable reductions in polyp burden, a key validation for its AI-driven drug discovery platform.
Shares of Recursion Pharmaceuticals (NASDAQ: RXRX) gained in Monday trading after the biotechnology company announced positive results from a mid-stage trial of its potential treatment for Familial Adenomatous Polyposis (FAP), a rare, inherited condition that inevitably leads to colorectal cancer if left untreated.
The Salt Lake City-based firm, which leverages artificial intelligence to discover new drugs, saw its stock rise 2.1% to $4.81 in a sign of investor optimism for its lead oncology asset, REC-4881. The advance comes as a welcome validation of the company’s high-tech approach to drug development.
According to a company press release, the ongoing Phase 1b/2 TUPELO trial demonstrated that REC-4881 led to a rapid and durable reduction in polyp burden in patients with FAP. After 12 weeks of treatment, 75% of evaluable patients experienced a reduction in polyps, with a median decrease of 43% from baseline. The effect appeared to strengthen over time, with patients showing a median reduction of 53% from baseline at the 25-week mark, 12 weeks after treatment concluded.
"These results represent a significant step forward for patients with FAP, who currently have no approved therapeutic options beyond invasive surgeries," the company stated. FAP is a debilitating genetic disorder characterized by the development of hundreds to thousands of precancerous polyps in the colon and rectum, typically beginning in a person's teenage years.
The drug, REC-4881, is a MEK1/2 inhibitor discovered using Recursion’s proprietary AI-powered platform. The positive data provides a crucial proof of concept for the company's model, which aims to decode biology and chemistry to find novel treatments more efficiently than traditional methods.
Recursion reported the treatment's safety profile was consistent with other drugs in the MEK inhibitor class, with most adverse events being mild to moderate. The promising results have prompted the company to seek a meeting with the U.S. Food and Drug Administration. Recursion plans to engage with the agency in the first half of 2026 to discuss a potential registration pathway for the drug. REC-4881 has already received Fast Track and Orphan Drug designations from the FDA, which could help expedite its review and development.
Despite the positive clinical news, the stock's modest rise reflects a deliberative market. With a market capitalization of approximately $2.46 billion, Recursion is one of many clinical-stage biotech companies where promising trial data must still be weighed against the lengthy and expensive path to regulatory approval and commercialization. The stock is trading well below its 52-week high of $12.36, and analyst ratings remain mixed, with a consensus target price of $6.33.
The next major catalyst for investors will be the outcome of the company's discussions with the FDA. A clear path toward a pivotal Phase 3 trial could provide further momentum for the stock and solidify REC-4881's potential as the first approved pharmaceutical treatment for FAP.