On Thursday, Baird raised the price target on Crinetics Pharmaceuticals (NASDAQ: NASDAQ:CRNX) shares from $52 to $62, while maintaining an Outperform rating.
The adjustment follows the early release of abstracts related to the company's drug atumelnant, which is under development for the treatment of congenital adrenal hyperplasia (CAH) and Cushing's syndrome.
The abstracts revealed that atumelnant led to fast and significant reductions in critical biomarkers for both conditions. Specifically, the drug showed a reduction in A4 for CAH and cortisol levels for Cushing's syndrome. These promising results have led to increased optimism about the drug's potential efficacy.
Baird's analyst highlighted the significance of the findings, noting that the data suggests a very high probability of success for atumelnant. The diseases' biology is well-understood, and the recent results align with this knowledge, strengthening confidence in the drug's development.
Despite the anticipation of a multi-year development plan before potential approval, the analyst believes the compelling results justify the raised price target. The new target reflects the positive outlook for atumelnant based on the recent findings.
Crinetics Pharmaceuticals is engaged in the development of atumelnant as a treatment option for patients with CAH and Cushing's syndrome, conditions that currently have limited therapeutic options. The company's progress in these areas is closely watched by investors and the medical community alike.
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