Recursion Pharma (RXRX) shares basing since late July above the $6 level have seen January 2027 $5 calls bought 5200X in October, a $2.1M position. RXRX does have high short interest at 21% of the float rising from 16% in July, but still worth a closer look. Recursion (RXRX) and Exscientia (EXAI) announced a transaction through which the two AI-enabled biotech companies will merge and operate as Recursion moving forward. Management anticipates the expected $100M in annual synergies to be annualized by 2026, with savings anticipated for both R&D and SG&A.

RXRX engages in the decoding biology by integrating technological innovations across biology, chemistry, automation, data science, and engineering to industrialize drug discovery. Its preclinical stage product includes REC-3964 to treat Clostridium difficile colitis; REC-64917 for the treat of neural or systemic inflammation. REC-64151 for the treatment of immune checkpoint resistance in KRAS/STK11 mutant non-small cell lung cancer.

RXRX has a market cap of $1.9B and trades 4X Cash. Data readouts from REC-2282 in NF2 & EXS617 through the ELUCIDATE trial by YE24 are the next key catalysts for RXRX.