JMP reiterates Market Outperform rating on Crinetics stock as paltusotine shows strong data
Investing.com
Published Jul 15, 2025 05:21AM ET
Investing.com - JMP Securities has reiterated its Market Outperform rating and $90.00 price target on Crinetics (NASDAQ:CRNX) following new long-term safety and efficacy data for its lead drug candidate paltusotine. According to InvestingPro data, analyst targets for CRNX range from $36 to $97, with the stock showing strong momentum, gaining over 12% in the past week.
The company presented extended data from its PATHFNDR-1 open-label extension trial showing paltusotine maintained IGF-1 levels comparable to prior injected SRL therapy for up to 60 weeks. Similarly, the PATHFNDR-2 open-label extension demonstrated decreased IGF-1 levels in newly treated patients and maintained levels in previously treated patients over 36 weeks. InvestingPro analysis shows Crinetics maintains a strong financial position, with more cash than debt on its balance sheet and a healthy current ratio of 22.5x.
Patient retention exceeded 90% in the extension trials, indicating strong enthusiasm for paltusotine, which is positioned to become the first daily oral drug approved for acromegaly. New analysis of patient-reported symptoms revealed that paltusotine reduced symptom exacerbations and improved all symptom domains compared to placebo.
JMP assigns a 90% probability of success for paltusotine's approval in acromegaly by its September 25 PDUFA date. The firm views this regulatory milestone as a significant near-term catalyst for the company.
Crinetics also presented Phase 2 TouCAHn data for atumelnant in congenital adrenal hyperplasia (CAH), demonstrating rapid and sustained reductions in androgens. The company is now activating sites for its pivotal CAH trial in adults and plans to begin Phase 2/3 pediatric and ACTH-dependent Cushing's syndrome trials in the current half-year. The company's next earnings report is scheduled for August 7, where investors can gain more insights into its development pipeline progress.
In other recent news, Crinetics Pharmaceuticals reported a revenue decline for Q1 2025, with earnings falling to $400,000 from $600,000 in the same quarter last year. Despite this decrease, the company is preparing for the anticipated launch of paltusotine, an oral treatment for acromegaly, expected in September 2025. On the analyst front, Goldman Sachs initiated coverage on Crinetics with a Neutral rating, citing uncertainties around the paltusotine launch and the competitive landscape. Meanwhile, JMP Securities reiterated a Market Outperform rating, noting the promising Phase 2 data for atumelnant, Crinetics' treatment for congenital adrenal hyperplasia (CAH). H.C. Wainwright maintained its Buy rating, highlighting Crinetics' drug discovery capabilities and the potential of its early-stage pipeline. Crinetics is also advancing its clinical programs, with plans to initiate Phase 3 studies for atumelnant in CAH and other trials in the near future. These developments underscore the company's strategic focus on innovation and market expansion.
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Written By: Investing.com
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