Piper Sandler confirmed its Overweight rating and $97.00 price target for Crinetics Pharmaceuticals (NASDAQ:CRNX). The biopharmaceutical company recently announced the submission of their New Drug Application (NDA) for paltusotine, an investigational treatment for acromegaly. The firm expects the application to undergo a standard review process.
According to Piper Sandler, there is a high probability of success (PoS) for paltusotine to receive approval for both the treatment and maintenance of acromegaly, with potential for a broad label. The analyst noted the depth and totality of the data seen to date as factors that could lead to a differentiated label for the drug.
The firm also highlighted that Crinetics reported significant quality of life improvements in patients treated with paltusotine, especially for those experiencing breakthrough symptoms. This aspect is expected to be included in the drug's label and may contribute to its adoption due to the high unmet need in this patient population.
Piper Sandler also mentioned an upcoming event with a key opinion leader (KOL) in the fields of congenital adrenal hyperplasia (CAH) and Cushing's disease, scheduled for October 11, indicating ongoing engagement and discussion in the broader endocrinological space.
Crinetics Pharmaceuticals has submitted a New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA) for paltusotine, a novel treatment option for acromegaly. The NDA is based on data from 18 clinical trials, including two pivotal Phase 3 trials. In addition, the company announced the upcoming departure of its Chief Commercial Officer, James Hassard.
Analysts from Piper Sandler and Oppenheimer continue to maintain a positive outlook on Crinetics. Piper Sandler reaffirmed its Overweight rating with a steady price target of $97.00, while Oppenheimer maintained an Outperform rating with a steady price target of $74.00.
Crinetics has also entered into an at-the-market sales agreement with Leerink Partners LLC and Cantor Fitzgerald & Co. These recent developments signify ongoing activities within Crinetics Pharmaceuticals.
InvestingPro Insights
To complement Piper Sandler's optimistic outlook on Crinetics Pharmaceuticals (NASDAQ:CRNX), recent data from InvestingPro provides additional context for investors. Despite the company's current lack of profitability, with a negative gross profit margin in the last twelve months as of Q2 2023, CRNX has demonstrated strong market performance. The stock has shown a remarkable 80.45% total return over the past year, and a 16.36% return in the last three months, indicating investor confidence in the company's potential.
InvestingPro Tips highlight that Crinetics holds more cash than debt on its balance sheet, which could be crucial for funding its ongoing research and development efforts, including the paltusotine program. This solid financial footing aligns with Piper Sandler's positive stance on the company's future prospects.
However, it's worth noting that analysts anticipate a sales decline in the current year, and the company is not expected to be profitable this year. These factors should be considered alongside the potential catalysts mentioned in the article.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for CRNX, providing a deeper understanding of the company's financial health and market position.
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