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On Tuesday, TD Cowen began coverage of Crinetics Pharmaceuticals (NASDAQ:CRNX) with a Buy rating, citing the company’s strong position in the endocrine market and the high potential of its product pipeline. The firm’s analyst highlighted Crinetics’ leading role in the field and the promising outlook for its treatments. This addition joins a strong consensus among analysts, with InvestingPro data showing nine analysts recently revising their earnings estimates upward despite the stock trading near its 52-week low of $35.51.
According to TD Cowen, Crinetics’ pipeline could generate significant revenue, potentially reaching tens of billions of dollars in sales. The firm is optimistic about the upcoming approval of Paltusotine, referred to as Paltu, which is expected in September. Paltu is anticipated to become the standard of care (SOC) for acromegaly and Cushing’s syndrome (CS). While InvestingPro analysis indicates the company currently maintains a healthy balance sheet with more cash than debt and a strong current ratio of 16.38, investors seeking deeper insights can access the comprehensive Pro Research Report, which provides detailed analysis of Crinetics’ financial health and growth prospects.
The analyst also noted the positive Phase II data for Atu, another Crinetics product, which shows strong competitiveness in the treatment of congenital adrenal hyperplasia (CAH) and Cushing’s disease. The probability of success (POS) for Atu in these indications is considered high by the firm.
Furthermore, TD Cowen expressed confidence in Crinetics’ early-stage pipeline, which includes treatments for various conditions such as NPC, PTH, TSH, and GLP1/GIP. The analyst described the pipeline as "impressive and robust," reinforcing the firm’s Buy rating on the company’s stock.
The initiation of coverage by TD Cowen with a Buy rating reflects a positive outlook for Crinetics Pharmaceuticals and its suite of endocrine therapies. The analyst’s commentary underscores the potential for significant advancements in the treatment of endocrine-related diseases and the expected growth in sales for the company’s products.
In other recent news, Crinetics Pharmaceuticals has been making notable strides in the development of its Congenital Adrenal Hyperplasia (CAH) treatment, atumelnant. The company reported positive topline results from a Phase 2 study of atumelnant, with significant reductions in key biomarkers and improvements in clinical symptoms for patients with CAH. Following these results, Jefferies upgraded Crinetics’ stock from Hold to Buy, citing the overlooked market potential for CAH treatment. Similarly, Oppenheimer maintained its Outperform rating on the company, emphasizing the potential of atumelnant as it progresses through the development pipeline. Piper Sandler also reiterated its Overweight rating on Crinetics, following the approval of a competitor’s CAH treatment. In addition, Crinetics recently appointed Isabel Kalofonos as its new Chief Commercial Officer, who will lead the commercial strategy and operations for potential product launches. These are recent developments that highlight the company’s commitment to advancing its CAH treatment and strengthening its leadership team.
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