On Wednesday, Oppenheimer maintained its Outperform rating on Crinetics Pharmaceuticals (NASDAQ:CRNX), raising the price target from $48.00 to $54.00. The adjustment follows the release of promising top-line Phase 2 results for the company's oral paltusotine treatment for carcinoid syndrome. The results showed the drug's effectiveness in reducing the frequency and severity of the syndrome's core clinical features.
The analyst highlighted that these positive results build on the encouraging interim analysis from December. The upcoming Phase 3 dosing for paltusotine is expected to start by the end of the year. Although the primary endpoint will be defined after discussions with the FDA, it is anticipated that the study will include patients transitioning from other therapies as well as those who have not been treated previously.
The potential market for paltusotine is significant, as two-thirds of the U.S. carcinoid patient population is currently untreated, and the market is valued at around $1 billion. The analyst projects that paltusotine could not only replace injectable treatments but also expand the treatment market for carcinoid syndrome.
Further optimism for Crinetics' paltusotine comes with the upcoming PATHFNDR-2 trial results, expected later this month. These results could solidify paltusotine's leading position in the endocrine therapy market for acromegaly. The raised price target to $54 reflects higher sales projections for paltusotine in the treatment of carcinoid syndrome, reinforcing the Outperform rating.
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