“This latest AI initiative is big news for companies like RXRX.”
Karim Rahemtulla, Head Fundamental Tactician, Monument Traders Alliance
One of the top companies I’ve been recommending since the tariffs started is Recursion Pharmaceuticals (RXRX).
I’ve closed multiple winners on it so far in 2025 in The War Room.
And last week we got some news that sent shares soaring another 18%.
As you’ll see above, RXRX is moving up.
So what happened? Well, on Thursday the FDA announced plans to replace animal testing in the development of monoclonal antibody therapies and other drugs with human-relevant methods.
The FDA said it will phase out animal testing requirements in favor of AI-based computational models of toxicity and cell lines and organoid toxicity testing.
So artificial intelligence is becoming more a part of the medical industry, and the goal of this initiative is to promise to accelerate cures and meaningful treatments for Americans while reducing animal use.
Implementation of this latest policy is expected to begin immediately.
Some other AI-powered biotech stock making moves after the announcement included Certara Inc. (CERT), Schrodinger Inc. (SDGR) and Simulations Plus (SLP).
All of the above names were up between 15% and 25% in after hours trading following the news.
But I believe it’s just the start.
While this latest FDA announcement is big for medical companies like RXRX, there are still plenty of upcoming catalysts on the company that could send it higher.
RXRX has several drug trials on the books, and good news on any one of them could send the stock higher.
It also has institutional buyers, including notable investor Cathie Wood, who bought 653,000 shares in January.
With all these catalysts, I’m predicting a 71% stock gain for RXRX this year.
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