Biotech Stock Crinetics Pharmaceuticals Positioned For Success In Chronic Endocrine Disorder Treatment, Says Analyst

Benzinga - by Vandana Singh, Benzinga Editor.

Oppenheimer initiated coverage on Crinetics Pharmaceuticals Inc (NASDAQ: CRNX) with an Outperform rating and a price target of $40.

The analysts Leland Gershell and Rohan Mathur note significant room for improvement in drugs targeting various chronic endocrine disorders. Current options either have suboptimal benefit/risk profiles, problematic administration routes, or inadequate frequency.

The well-understood biology of peptide hormone signaling through G protein-coupled receptors makes them the therapeutic targets of choice, and Crinetics Pharmaceuticals is distinguished by its ability to create oral, once-daily non-peptide drug candidates to endocrine GPCRs

Oppenheimer writes that Crinetics Pharmaceuticals is well-positioned to meaningfully improve the treatment condition for a growing number of chronic endocrine disorders through its non-peptide drug discovery capability against well-understood targets.

Phase 3 development success in acromegaly could pave the way for oral paltusotine to generate ~$250 million in peak sales, and next quarter's Phase 2 look in neuroendocrine tumors could bring ~2x that initial opportunity into focus.

The analysts hold a positive outlook for the forthcoming Phase 2 outcomes of the daily oral ACTH antagonist CRN04894, anticipating it will establish proof-of-concept for both Cushing's syndrome and Congenital adrenal hyperplasia. Additionally, CRNX is progressing towards addressing more common medical conditions, as its early-stage initiatives for Graves' disease/Thyroid eye disease and diabetes/obesity are advancing toward clinical trials.

Price Action: CRNX shares are up 6.90% at $17.66 on the last check Thursday.

Latest Ratings for CRNX

View the Latest Analyst Ratings

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga