Buy Rating Affirmed for Crinetics Pharmaceuticals on Strong Drug Pipeline and Market Potential

H.C. Wainwright analyst Douglas Tsao has reiterated their bullish stance on CRNX stock, giving a Buy rating today.

Douglas Tsao has given his Buy rating due to a combination of factors related to Crinetics Pharmaceuticals’ promising developments and potential market position. The company’s lead candidate, paltusotine, is advancing towards regulatory submission with a strong data set from pivotal trials, indicating a high likelihood of approval for treatment of acromegaly. This positions paltusotine to potentially become a new standard of care, not only for acromegaly but also for carcinoid syndrome, with plans to initiate a Phase 3 program soon. Tsao’s confidence in the drug’s approval and subsequent market launch underpins the positive outlook on the company’s stock.

Furthermore, the potential success of Crinetics’ second key drug, atumelnant, strengthens the investment case. The Phase 2 results for this drug, an ACTH-antagonist indicated for congenital adrenal hyperplasia (CAH) and ACTH-dependent Cushing’s syndrome, are highly anticipated. The drug’s design to normalize cortisol levels and the possibility of reducing glucocorticoid therapy dosage in CAH patients are particularly promising aspects. Tsao believes that the ACTH antagonism approach could offer greater therapeutic benefits compared to earlier CRF1 antagonists, with the potential to influence the FDA’s endpoint considerations for Phase 3 studies. These factors together support the rationale behind Tsao’s optimistic Buy rating for Crinetics Pharmaceuticals.

In another report released today, JMP Securities also reiterated a Buy rating on the stock with a $80.00 price target.

Based on the recent corporate insider activity of 51 insiders, corporate insider sentiment is neutral on the stock.

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Crinetics Pharmaceuticals (CRNX) Company Description:

Crinetics Pharmaceuticals, Inc. operates as a clinical stage pharmaceutical company focused on the discovery, development, and commercialization of novel therapeutics for rare endocrine diseases and endocrine-related tumors. Its product candidate, CRN00808, is an oral nonpeptide somatostatin agonist for the treatment of acromegaly. It is also developing other oral nonpeptide somatostatin agonists for neuroendocrine tumors and hyperinsulinism, as well as an oral nonpeptide ACTH antagonist for the treatment of Cushing’s disease. The company was founded by R. Scott Struthers, Yun-Fei Zhu and Stephen F. Betz in 2008 and is headquartered in San Diego, CA.