Crinetics Pharmaceuticals (CRNX) AI Stock Analysis

• Market Cap: $2.82B
• Dividend Yield: N/A
• Average Volume (3M): 900.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.52
• Revenue Growth: N/A
• EPS Growth: -1.20%
• Country: US
• Employees: 437
• Sector: Healthcare
• Sector Strength: 43
• Industry: Biotechnology
• EPS (TTM): -1.04
• Shares Outstanding: 93,680,130
• 10 Day Avg. Volume: 930,260
• 30 Day Avg. Volume: 900,272
• PEG Ratio: -19.86
• Price to Book (P/B): 2.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -14.06
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $77.70
• Price Target Upside: 158.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 46 Neutral
• Price Target: $30.00 ▼( -0.37% Downside)

Crinetics Pharmaceuticals has a challenging financial profile with ongoing losses and cash flow issues, which weigh heavily on the stock score. While the earnings call presents a positive strategic outlook with robust pipeline advancements, the decrease in revenue and increased expenses are significant concerns. Technical analysis indicates potential downward momentum, and valuation metrics are unattractive due to negative earnings. The appointment of a seasoned CFO is a positive development, but not enough to offset the broader financial challenges.

Positive Factors

Commercial Launch

Management remains focused on the anticipated commercial launch of paltusotine for the treatment and long-term maintenance therapy of acromegaly.

Financial Position

The company finished the quarter with $1.3B in cash, cash equivalents, and investments, which is expected to fund operations into 2029.

Regulatory Progress

Regulatory engagements have been proceeding 'on track' leading up to paltusotine PDUFA date, with management not anticipating an AdCom as part of NDA review.

Negative Factors

Safety Concerns

Much of the discussion has focused on safety following the finding of elevated liver enzymes in one patient, which has arguably overshadowed the impressive efficacy.

Crinetics Pharmaceuticals Business Overview & Revenue Model

Company Description

Crinetics Pharmaceuticals (CRNX) is a clinical-stage pharmaceutical company focused on the discovery, development, and commercialization of novel therapeutics for rare endocrine diseases and endocrine-related tumors. The company primarily operates in the biopharmaceutical sector, leveraging its expertise in drug discovery and development to address unmet medical needs associated with hormonal diseases. Crinetics' core products include investigational therapies aimed at treating conditions such as acromegaly, congenital hyperinsulinism, and neuroendocrine tumors.

How the Company Makes Money

Crinetics Pharmaceuticals primarily makes money through the development and eventual commercialization of its drug candidates. The company's revenue model is centered on bringing its investigational therapies to market, which involves various stages of clinical trials and regulatory approvals. Key revenue streams are anticipated from product sales upon successful commercialization of its drug candidates. Additionally, Crinetics may enter into strategic partnerships or licensing agreements with other pharmaceutical companies to co-develop or market its products, which could provide milestone payments, royalties, and other financial incentives. However, as a clinical-stage company, the majority of its current funding is likely sourced from investments, grants, and public offerings to support its research and development efforts.

Crinetics Pharmaceuticals Financial Statement Overview

Summary

Crinetics Pharmaceuticals faces significant financial challenges, with persistent operational losses and cash flow issues. While recent financing has strengthened the cash position, the company's ability to generate sustainable revenue and profit remains unproven. The balance sheet shows improvement, but historical financial instability highlights the need for caution.

Income Statement

Crinetics Pharmaceuticals has experienced fluctuating revenue with a decline from 2022 to 2023, followed by a sharp drop in 2024. The gross profit margin is consistently high, but net losses persist, indicating ongoing profitability challenges. Negative EBIT and EBITDA margins reflect operational inefficiencies.

Balance Sheet

The company shows a strong equity position with substantial cash reserves and minimal debt. However, negative stockholders' equity in earlier years indicates past financial distress. Current liabilities are relatively low, but the debt-to-equity ratio is a concern due to historical negative equity.

Cash Flow

Operating cash flow remains negative, highlighting potential liquidity challenges. Free cash flow is also consistently negative, though recent financing activities have bolstered cash reserves. Stability in cash flow remains a concern with ongoing operational losses.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.04M	4.01M	4.74M	1.08M	71.00K
	Gross Profit
1.04M	4.01M	3.35M	-184.00K	-56.93M
	EBIT
-338.85M	-222.61M	-167.88M	-107.70M	-74.95M
	EBITDA
-338.85M	-221.51M	-166.90M	-106.78M	-72.59M
	Net Income Common Stockholders
-298.41M	-214.53M	-159.95M	-106.72M	-72.86M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.35B	558.55M	334.43M	333.71M	170.88M
	Total Assets
1.43B	635.35M	352.18M	351.01M	183.44M
	Total Debt
51.72M	51.73M	2.02M	3.07M	4.01M
	Net Debt
-212.82M	-3.17M	-30.65M	-197.62M	-89.07M
	Total Liabilities
109.79M	96.25M	35.85M	19.07M	14.53M
	Stockholders Equity
1.32B	539.11M	-439.17M	-275.25M	-167.61M
Cash Flow		Free Cash Flow
-229.81M	-171.00M	-116.86M	-89.02M	-62.21M
	Operating Cash Flow
-225.97M	-166.31M	-115.20M	-88.59M	-62.03M
	Investing Cash Flow
-574.82M	-200.41M	-173.98M	-56.48M	217.00K
	Financing Cash Flow
1.01B	388.94M	121.96M	252.68M	114.57M

Crinetics Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 30.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRNX, the sentiment is Negative. The current price of 30.11 is below the 20-day moving average (MA) of 31.81, below the 50-day MA of 31.69, and below the 200-day MA of 44.81, indicating a bearish trend. The MACD of -0.44 indicates Positive momentum. The RSI at 42.57 is Neutral, neither overbought nor oversold. The STOCH value of 9.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CRNX.

Crinetics Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACAD	79 Outperform	$3.61B	15.69	37.24%	―	22.42%	―
VKTX	53 Neutral	$3.11B	―	-14.40%	―	―	-23.84%
Sector *	53 Neutral	$5.14B	3.06	-43.57%	2.81%	16.81%	-0.12%
APLS	50 Neutral	$2.23B	―	-103.82%	―	48.04%	48.16%
SRRK	50 Neutral	$2.99B	―	-106.71%	―	―	-22.34%
CRNX	46 Neutral	$2.82B	―	-30.84%	―	―	-1.20%
IMVT	45 Neutral	$2.47B	―	-74.17%	―	―	-43.10%

Crinetics Pharmaceuticals Corporate Events

Crinetics Pharmaceuticals Appoints New Chief Financial Officer

On February 24, 2025, Crinetics Pharmaceuticals announced the appointment of Tobin Schilke as Chief Financial Officer, effective February 28, 2025. Mr. Schilke brings over 25 years of global pharmaceutical experience, having previously transformed biotech companies into commercial organizations. His appointment is seen as pivotal as Crinetics prepares for its first commercial launch and advances its development pipeline. The move is expected to accelerate Crinetics’ growth objectives and create long-term value for stakeholders.