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On Friday, Cantor Fitzgerald analyst Josh Schimmer increased the price target for Crinetics Pharmaceuticals (NASDAQ:CRNX) to $100.00, up from the previous target of $90.00, while maintaining an Overweight rating on the stock. According to InvestingPro data, analyst targets range from $55 to $97, with 9 analysts recently revising their earnings expectations upward. Currently trading at $33.21, the stock has seen significant pressure, down 35% year-to-date. Schimmer’s reassessment follows a review of updated data on Crinetics’ drug atumelnant, an ACTH inhibitor being developed for congenital adrenal hyperplasia (CAH).
Schimmer expressed initial concerns that the impact of atumelnant on androstenedione (A4) levels might weaken as patients reduced their steroid use. This concern was based on the January 2025 data update, which seemed less convincing compared to the original dataset from June 2024. However, after an in-depth review during a bus tour with the company, Schimmer’s confidence was renewed regarding the drug’s sustained efficacy even as CAH patients begin to taper their steroid treatment. InvestingPro analysis reveals the company maintains strong financial health with a current ratio of 16.38 and more cash than debt on its balance sheet, providing runway for continued drug development.
The analyst’s renewed confidence stems from the belief that atumelnant will remain effective and could become a significant treatment in the CAH market, which is worth multiple billions of dollars. The drug is progressing to Phase 3 trials, with the next data update eagerly anticipated by Schimmer, who expects it to be positive. Additionally, atumelnant’s potential in treating Cushing’s disease was highlighted as compelling, with Crinetics currently evaluating the best strategy for steroid addback to prevent any adrenal crises in patients. With a market capitalization of $3.08 billion and robust liquidity position, InvestingPro subscribers can access detailed financial analysis and 13 additional ProTips about CRNX’s investment potential.
The competitive landscape for CAH treatments may see new developments, as Lundbeck, a pharmaceutical company, is expected to release Phase 1b data for its own ACTH antibody in the second quarter of 2025. Schimmer notes that it remains to be seen whether Lundbeck’s treatment will pose a competitive threat to atumelnant.
In other recent news, Kinetics Pharmaceuticals reported a notable decline in revenue for the full year 2024, dropping to $1 million from $4 million in 2023. This was accompanied by a significant increase in research and development expenses, which rose to $240.2 million. Despite these financial challenges, Kinetics maintains a strong cash position of approximately $1.4 billion, expected to fund operations into 2029. The company is preparing for the potential launch of paltucitine, a treatment for acromegaly, with the FDA having accepted its New Drug Application (NDA) and a possible launch in Q4 2025. Expansion efforts are also underway in the U.S. and Europe.
In other developments, Crinetics Pharmaceuticals received a price target adjustment from JMP Securities, now set at $91, while maintaining a Market Outperform rating. The company is anticipated to receive approval for paltusotine in treating acromegaly, with a decision expected by the September 25 PDUFA date. JMP Securities also highlighted the potential of upcoming Phase 3 trials for paltusotine in carcinoid syndrome and atumelnant for congenital adrenal hyperplasia (CAH). Crinetics ended 2024 with $1.4 billion in cash reserves, which management believes will fund the company into 2029.
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