Recursion Pharmaceuticals price target lowered to $6 from $7 at Leerink

Leerink lowered the firm’s price target on Recursion Pharmaceuticals (RXRX) to $6 from $7 and keeps a Market Perform rating on the shares after the company announced Q4 financial results. On the call, Recursion highlighted REC-7735 preclinical data, suggesting differentiation from Scorpion Therapeutics’ STX-478, which was acquired by Eli Lilly (LLY) earlier this year. To moderate spend, the company will carve out its Austrian operations into a newly formed entity and sub-lease/simplify its real estate footprint. The firm notes that the update brought key bear theses to the forefront as cash burn remains unsustainably high, placing even greater pressure on deal execution and clinical development over the next 12 months.