5 Must-Buy Penny Stocks to Invest In Now

4. Recursion Pharmaceuticals Inc (NASDAQ:RXRX)

Number of Hedge Fund Holders: 29

Upside Potential: 85.19%

Stock Price: $3.78

Recursion Pharmaceuticals Inc (NASDAQ:RXRX) is among the must-buy penny stocks to invest in now. Recursion Pharmaceuticals Inc (NASDAQ:RXRX) is accelerating its drug development programs and unlocking cost-savings opportunities thanks to its AI-driven strategy. This is the message the company’s executives shared with investors during a Morgan Stanley webcast on April 15.

The executive team, led by CEO Najat Khan and CFO Ben Taylor, provided insights about the company’s AI-powered drug discovery approach. Investors heard that Recursion used a combination of experimental biology and machine learning in a mapping effort that led to the identification of 25 new targets simultaneously. According to the company, this kind of work would normally take years of research to complete using traditional means.

Recursion is also using AI to speed up molecule design. The executive offered an example at the Morgan Stanley webcast on how this has worked for them. They said that they were able to design around 330 molecules in just over 17 months to advance a compound to clinical trials recently. In normal industry practice, developing 2,500 to 5,000 compounds would take four to five years.

The investors also heard that Recursion’s AI-driven strategy is speeding up patient enrollment for clinical trials by up to 50%. This is being achieved in part due to improved site selection and recruitment.

By leveraging the power of artificial intelligence, Recursion expects to save millions in costs in its drug development programs. The management sees cost-savings opportunities in areas like animal testing, manufacturing, and controls. These areas can account for about 50% of the cost of drug discovery and development.

Recursion Pharmaceuticals Inc (NASDAQ:RXRX) is an American biotech company based in Utah. The company is known for its use of automation and AI capabilities in drug discovery efforts. Recursion has a broad pipeline of potential drug products.