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Piper Sandler has reaffirmed its Overweight rating on Crinetics (NASDAQ: CRNX) with a steady price target of $97.00.
The firm's positive stance is rooted in the potential of Crinetics' drug atumelnant, which is being developed to treat conditions such as congenital adrenal hyperplasia (CAH) and Cushing's disease.
The endorsement follows a recent call with a key opinion leader (KOL) in the field, which was co-hosted by Piper Sandler. The discussion centered on the current development landscape for treatments targeting CAH and Cushing's disease.
The KOL expressed optimism about the initial Phase 2 TouCAHn trial data involving six patients, anticipating further success with additional data expected by the end of 2024. The KOL highlighted that the significant reduction in androgen precursor A4 could translate into the drug's ability to reduce the need for glucocorticoid treatment, an essential regulatory endpoint with a Phase 3 trial commencement slated for 2025.
In the context of Cushing's disease, a condition with a high unmet medical need, the KOL identified several challenges. However, the initial positive results from atumelnant in a small group of five patients suggest that the drug could be a first-line treatment option. Further data on atumelnant are anticipated by the end of 2024.
In other recent news, Crinetics Pharmaceuticals (NASDAQ:CRNX) has announced a $400 million underwritten public offering of common stock, with an additional option for underwriters to acquire up to $60 million in shares. The proceeds from this offering are slated to support research and development activities, pre-commercialization activities, and potential acquisitions. The company has also submitted a New Drug Application for paltusotine, a treatment for acromegaly, following extensive clinical trials.
In management changes, James Hassard, the Chief Commercial Officer of Crinetics Pharmaceuticals, is set to leave the company. Meanwhile, Jon Kuwahara, a seasoned finance professional, has been appointed to the board of Emmaus Life Sciences (OTC:EMMA), following the resignation of George Sekulich.
Analysts from Piper Sandler and Oppenheimer have maintained a positive outlook on Crinetics Pharmaceuticals, reaffirming their Overweight and Outperform ratings, respectively. Lastly, Crinetics has entered into an at-the-market sales agreement with Leerink Partners LLC and Cantor Fitzgerald & Co.
InvestingPro Insights
Crinetics Pharmaceuticals (NASDAQ:CRNX) has shown impressive market performance, with a 82.55% price return over the past year and is currently trading near its 52-week high. This aligns with Piper Sandler's optimistic outlook on the company's potential, particularly regarding its drug atumelnant.
Despite the positive market sentiment, InvestingPro data reveals some financial challenges. The company's revenue for the last twelve months as of Q2 2024 was only $1.39 million, with a significant revenue decline of 71.35% during the same period. This reflects the early-stage nature of Crinetics' drug development pipeline, which is typical for biotech companies focused on breakthrough treatments.
InvestingPro Tips highlight that Crinetics holds more cash than debt on its balance sheet and has liquid assets exceeding short-term obligations. These factors provide financial stability as the company progresses through costly clinical trials for atumelnant. However, it's important to note that analysts do not anticipate the company to be profitable this year, which is consistent with the developmental stage of its key drug candidates.
For investors seeking a deeper understanding of Crinetics' financial health and growth prospects, InvestingPro offers 8 additional tips that could provide valuable insights into the company's investment potential.
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