As a young and innovative company that heavily emphasizes the "tech" portion of the term "biotech," Recursion Pharmaceuticals (NASDAQ: RXRX) is a classic contender for being the kind of stock that can turn investors into millionaires. It has flashy technology and pioneering drug development methods.

But can those really drive returns on the scale needed to make a relatively small investment grow to be worth millions? Buckle up and get ready for some calculations, because we're about to find out.

Today, Recursion's market cap is close to $2.2 billion. It has no marketed products, and its trailing-12-month revenue of $46.2 million is derived solely from collaborations with bigger biopharmas. In its pipeline, it has a handful of programs intended to treat rare diseases -- three are in phase 2 trials, and there are a couple of earlier-stage projects -- and a pair of oncology programs. In other words, it will probably not have any sales revenue within the next two years.

Continue reading

Source Fool.com