JPMorgan Upgrades Recursion Pharmaceuticals on Progress in FAP Therapy Development

JPMorgan Chase & Co. upgraded Recursion Pharmaceuticals Inc. (RXRX) to 'Overweight' from 'Neutral,' citing significant near-term catalysts tied to the development of a novel therapy for familial amyloid polyneuropathy (FAP). The biopharmaceutical company’s lead candidate, RFX-001, has demonstrated dose-dependent reductions in serum transthyretin (TTR) levels in Phase 2 trials, with a 75% mean reduction observed at the highest dose (600 mg) after 12 weeks of treatment. The upgrade follows positive interim results from the ongoing Phase 2b study, which enrolled 112 patients across North America and Europe. Data showed that 84% of participants in the high-dose group achieved TTR suppression below 100 mg/L—well below the threshold associated with disease progression. These results position RFX-001 as a potential first-in-class oral therapy for FAP, a rare genetic disorder affecting approximately 10,000 individuals globally. JPMorgan's analysis highlights a favorable risk-reward profile, noting that if RFX-001 receives accelerated approval from the FDA by mid-2027, the company could achieve peak sales of $1.2 billion annually in the U.S. and Europe. The firm also emphasized that Recursion’s AI-driven discovery platform has reduced development timelines by an estimated 30% across its pipeline, enhancing long-term value. The upgrade has prompted a 7.4% increase in RXRX’s share price within one trading session, with institutional investors increasing their positions by 14% over the past month. Analysts now expect multiple regulatory submissions in 2026, including a rolling BLA filing with the FDA and a marketing authorization application to the EMA.