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    Is The Exit Of Nvidia And Novo Holdings Altering The Investment Case For Recursion Pharmaceuticals (RXRX)?

    Simply Wall St·02/19/2026 07:45:05
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    • In recent months, Recursion Pharmaceuticals has seen major shareholders Nvidia and Novo Holdings fully exit their positions, ahead of its upcoming fourth-quarter 2025 earnings release and planned FDA discussions on lead candidate REC-4881.
    • These high-profile departures come as Recursion advances its AI-enabled drug discovery platform and clinical pipeline, testing investor conviction in its partnership-driven business model and capital needs.
    • Next, we’ll examine how the exit of high-profile investors like Nvidia shapes Recursion’s investment narrative and perceived risk profile.

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    Recursion Pharmaceuticals Investment Narrative Recap

    To own Recursion today, you have to believe its AI-enabled platform can translate into successful drugs and durable partnerships before cash constraints bite. The exits by Nvidia and Novo raise questions around sentiment and future fundraising, but they do not directly alter the near term clinical catalyst: upcoming FDA discussions on REC-4881’s potential registration path. The biggest immediate risk remains execution under ongoing losses and a limited cash runway in a weaker share price environment.

    Against this backdrop, the planned FDA meeting in the first half of 2026 for REC-4881 stands out as the most relevant announcement. Positive TUPELO data have already put this program at the center of Recursion’s story, and the upcoming Q4 2025 earnings call is expected to give more clarity on how management prioritizes REC-4881, allocates R&D spend, and thinks about funding options now that two former cornerstone shareholders have stepped aside.

    Yet despite the excitement around REC-4881, investors should also be aware of how Recursion’s cash burn and dependence on external capital could...

    Read the full narrative on Recursion Pharmaceuticals (it's free!)

    Recursion Pharmaceuticals’ narrative projects $220.9 million revenue and $35.5 million earnings by 2028.

    Uncover how Recursion Pharmaceuticals' forecasts yield a $7.00 fair value, a 98% upside to its current price.

    Exploring Other Perspectives

    RXRX 1-Year Stock Price Chart
    RXRX 1-Year Stock Price Chart

    While the core risks center on cash runway and big pharma partnerships, the most bearish analysts painted an even tougher picture, assuming only 16.5% annual revenue growth to about US$102.1 million by 2028 and still no profitability. If you are weighing Nvidia’s exit and fundraising risk, it is worth knowing that some experts already saw dilution and negative cash flow as central concerns, and their views may shift further as this new information is absorbed.

    Explore 4 other fair value estimates on Recursion Pharmaceuticals - why the stock might be worth over 3x more than the current price!

    Reach Your Own Conclusion

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.