Let’s talk about Recursion Pharmaceuticals (RXRX) – a story that’s getting more interesting by the day.

Look, the biotech space is getting hammered, and RXRX has taken its share of hits.

Their recent earnings miss ($0.34 vs expected $0.33) didn’t help matters. But here’s what’s catching my eye – and why you need to pay attention.

The Big Picture Catalysts:

The AI-Powered Drug Discovery Platform

Look, RXRX isn’t just another biotech – they’re using artificial intelligence to revolutionize how we discover drugs.

They’ve built a massive biological database and use machine learning to analyze it. That’s why NVIDIA’s invested – they see the computing power needed here.

The Technology Evolution

Look, let me break this down in plain English. Traditional drug discovery is like looking for a needle in a haystack – one test tube at a time. RXRX has basically built a massive automated factory that can do this work at warp speed.

Their latest platform combines:

• Automated labs that can run 24/7
• AI systems that can predict which molecules might work
• CRISPR technology to precisely edit genes and see what happens
• Robotics that can test thousands of compounds simultaneously

Here’s what matters: Their recent SYCAMORE trial used their old technology from 2015. What they’re working with now is light years ahead. The platform has evolved from screening a few thousand molecules to analyzing billions of potential drugs. And they’re not just throwing darts – the AI helps them make smart choices about which molecules to test.

But here’s the key – all this fancy technology means nothing without results. That’s why we’ve got 10 clinical readouts coming in the next 18 months.

Any one of these could validate their entire approach. And with the Exscientia acquisition, they’re adding even more firepower to their platform.

Remember though – this is still early innings.

The technology is promising, but we need to see it translate into approved drugs.

That’s why we’re being strategic about our entry point and keeping our position size manageable.

Cash Position

$427.6M in the bank gives them a runway into 2027. In this market, that’s breathing room you need.

Why This Setup Looks Interesting:

• 10 clinical readouts coming in next 18 months
• $200M in potential milestone payments over next 2 years
• Exscientia acquisition could be a game-changer

Your Action Plan:

Look, I’m not interested in just buying shares and hoping for the best – that’s amateur hour. We’re using options to essentially negotiate a better entry price.

Think of it like buying a house below market value – you’re still getting the house, but you’re reducing your risk right from the start.

What I really love about this strategy is how it fits perfectly with RXRX’s profile:

• High volatility (which means better premium)
• Clear catalyst timeline
• Defined risk parameters

The Numbers That Matter:

Current Price: Around $6 (near 52-week lows)

Revenue Growth: 147.9% Year-over-Year

Pipeline Potential: Multiple billion-dollar opportunities

Here’s the thing – this isn’t for your retirement account. We’re using strict position sizing and a 50% stop loss.

That should tell you everything you need to know about managing risk here.

But for a speculative portion of your portfolio?

This setup is exactly what I look for – a beaten-down stock with multiple catalysts, big-money backing, and a way to get in at a discount.

We're already positioned in this one in The War Room with a specific options strategy to protect our downside while maintaining upside exposure.

Want to know exactly how we’re playing this setup?

Join me in The War Room, where we're executing these trades in real-time.