Crinetics stock price target raised to $75 from $58 at Stifel on Paltusotine approval

Investing.com - Stifel raised its price target on Crinetics Pharmaceuticals (NASDAQ:CRNX) to $75 from $58 while maintaining a Buy rating following the recent approval of Paltusotine, marketed as Palsonify, for Acromegaly treatment. The stock has shown remarkable momentum, surging 36% in the past week alone. According to InvestingPro data, analyst targets range from $40 to $143, reflecting diverse views on the company’s potential.

The research firm noted that Paltusotine’s price point of $290,000 per year exceeded market expectations, which had anticipated pricing at parity or a marginal premium to standard-of-care somatostatin receptor ligands (SRLs).

Stifel believes most payers will only require prior authorization to label for the medication, potentially representing further upside for the company if this assessment proves accurate.

The firm projects a gradual product launch due to limited endocrinologist activity, with early adopters likely coming from patients already experienced with SRL treatments.

Stifel has updated its model to reflect the higher price while moderating peak penetration estimates, particularly in carcinoid treatment where adoption may face resistance without placebo-controlled progression-free survival data, resulting in peak sales estimates of $2.5 billion overall, with $1.5 billion from Acromegaly.

In other recent news, Crinetics Pharmaceuticals has received FDA approval for its acromegaly treatment, Palsonify, which is a once-daily oral medication. The approval has led several analysts to adjust their outlook on the company. Piper Sandler has reiterated an Overweight rating with a $97.00 price target, citing the drug’s potential as a "gamechanger" in the acromegaly market. Leerink Partners increased its price target to $88.00, maintaining an Outperform rating, due to the drug’s potential to reshape the market with a broad label highlighting patient-reported outcome benefits. Morgan Stanley also raised its price target to $77.00, noting the higher-than-expected list price and broad label. Stifel reiterated a Buy rating with a $58.00 price target, emphasizing the on-time approval and its alignment with standard-of-care injectable medications. Additionally, Jones Trading increased its price target to $85.00, maintaining a Buy rating, and highlighted the drug’s annual wholesale acquisition cost of $290,000, which is significantly higher than the monthly cost of standard treatments. These developments indicate a positive reception from the investment community regarding Crinetics’ latest pharmaceutical advancement.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.