Douglas Tsao, an analyst from H.C. Wainwright, reiterated the Buy rating on Crinetics Pharmaceuticals (CRNX – Research Report). The associated price target remains the same with $81.00.
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Douglas Tsao has given his Buy rating due to a combination of factors surrounding Crinetics Pharmaceuticals’ development of atumelnant. The company’s ambitious Phase 3 trial design for CAH aims to set a new standard of care by focusing on the normalization of androstenedione levels with physiological glucocorticoid replacement, which is more comprehensive than previous approaches.
Despite concerns over safety due to elevated liver enzymes in one patient during Phase 2, the efficacy results were impressive, and the company is confident in its highly powered Phase 3 study to detect significant differences between treatment and placebo groups. The trial’s design, which includes potential glucocorticoid reduction and an optional open-label extension for long-term data, demonstrates Crinetics’ commitment to establishing atumelnant as a leading treatment for CAH. If successful, atumelnant could become the standard of care, further justifying the Buy rating.