SAN DIEGO - Crinetics Pharmaceuticals, Inc. (NASDAQ:CRNX), a clinical-stage company focused on developing treatments for rare endocrine diseases and related tumors, has successfully arranged a private placement of 8,333,334 shares priced at $42.00 each. The transaction is expected to generate gross proceeds of around $350 million before deducting expenses related to the offering.
This capital raise, anticipated to close around March 1, 2024, attracted a mix of new and current institutional investors, including notable names such as Adage Capital Partners L.P. and Janus Henderson Investors. The oversubscription highlights strong investor confidence in Crinetics' prospects.
Placement agents for the transaction include Leerink Partners and Piper Sandler among others. The company has stated the intention to use the net proceeds to advance the development of its clinical-stage product candidates, other research programs, and for general corporate purposes.
Crinetics' leading candidate, paltusotine, is undergoing Phase 3 trials for acromegaly and Phase 2 for carcinoid syndrome. Additionally, the company is advancing CRN04894, an investigational oral ACTH antagonist, through Phase 2 trials targeting congenital adrenal hyperplasia and Cushing's disease. All candidates are orally administered, small molecule new chemical entities from Crinetics' in-house discovery efforts.
The offered securities in this private placement are not registered under the Securities Act of 1933 and will be subject to restrictions on resale in the U.S. Crinetics has committed to filing a registration statement with the SEC for the resale of the shares no later than 40 days post-pricing.
The company's forward-looking statements indicate the closing of the private placement is dependent on customary conditions and market circumstances. Crinetics' filings with the SEC provide further details on the risks associated with the business and the offering.
This news is based on a press release statement from Crinetics Pharmaceuticals.
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