11 Best Mid-cap Healthcare Stocks to Buy According to Hedge Funds

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10. Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX)

Market Cap as of July 3: ~$2.14 billion

Number of Hedge Fund Holders: 19

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) is one of the 11 Best Mid-cap Healthcare Stocks to Buy According to Hedge Funds. Morgan Stanley assumed coverage of the company’s stock with an “Equal Weight” rating and a price objective of $5, as reported by The Fly. As per the analyst, Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX)’s stock witnessed volatility because of a combination of macroeconomic factors, underperformance on initial clinical results, and uncertainty related to the valuation and revenue drivers. Furthermore, the recent pipeline prioritization and stage of clinical development for the proprietary pipeline tend to leave numerous open questions on valuation, added the firm analyst.

However, as part of the business combination with Exscientia, Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) has been proactively streamlining its portfolio, platform, and operations, making trade-offs to emphasize resources on programs having the strongest scientific rationale and highest potential for near and long-term impact. In Q1 2025, Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX)’s total revenue, consisting mainly of revenue from collaboration agreements, came in at $15 million as compared to $14 million for Q1 2024. This was because of the timing of projects from its Sanofi, Roche and Merck KGaA, Darmstadt, Germany collaborations.

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