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Crinetics Pharmaceuticals (CRNX)
NASDAQ:CRNX
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Crinetics Pharmaceuticals (CRNX) AI Stock Analysis

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CRNX

Crinetics Pharmaceuticals

(NASDAQ:CRNX)

Rating:52Neutral
Price Target:
$31.00
▼(-9.49% Downside)
Crinetics Pharmaceuticals' overall stock score is primarily influenced by its financial challenges, including persistent losses and cash flow issues. While technical indicators are neutral, the valuation is negatively impacted by ongoing losses. Positive developments from the earnings call and corporate events provide some optimism, but the financial instability remains a significant concern.
Positive Factors
Market Potential
Crinetics is positioned to shift from a late-stage development company to a fully integrated commercial organization.
Product Advantage
Many called paltusotine a game-changer in acromegaly compared to the current standard-of-care.
Product Launch
The company continues to prepare for its first commercial launch of Palsonify to treat acromegaly ahead of the PDUFA target action date.
Negative Factors
Competition
Paltusotine's lead indication is acromegaly where SRLs are SOC, but fail to provide durable disease control and require painful injections.
Regulatory Approval
Crinetics is approaching its September 25 PDUFA for Palsonify (paltusone) in acromegaly, following NDA acceptance in December of last year on the back of positive Phase 3 PATHFNDR-1 and PATHFNDR-2 results.
Safety Concerns
Management reiterated comfort in atumelnant’s safety profile, despite a single case of AST/ALT elevations in the 120mg cohort, citing the growing body of clinical experience.

Crinetics Pharmaceuticals (CRNX) vs. SPDR S&P 500 ETF (SPY)

Crinetics Pharmaceuticals Business Overview & Revenue Model

Company DescriptionCrinetics Pharmaceuticals, Inc. is a clinical-stage pharmaceutical company focused on developing novel therapeutics for rare endocrine diseases and other unmet medical needs. The company operates primarily in the biotechnology sector, concentrating on the discovery and development of small molecule drugs that target specific receptor pathways. Its core products include investigational drugs such as paltusotine, aimed at treating conditions like acromegaly and Cushing's disease, as well as other pipeline candidates addressing various hormonal disorders.
How the Company Makes MoneyCrinetics Pharmaceuticals generates revenue primarily through the development and commercialization of its drug candidates. The company may earn revenue from licensing agreements with larger pharmaceutical partners, who may fund the development and marketing of its products in exchange for a share of future sales or milestone payments. Additionally, Crinetics could receive grants or funding from governmental and non-governmental organizations for research purposes. Furthermore, successful clinical trials leading to regulatory approvals can increase the company's valuation and attract investment, thus contributing to its overall financial health.

Crinetics Pharmaceuticals Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with significant progress in regulatory approvals, commercial launch preparations, and pipeline development. Financial health remains strong despite increased operating expenses. However, challenges in achieving immediate launch uptake were noted.
Q2-2025 Updates
Positive Updates
FDA Approval Progress for Paltusotine
The NDA review for paltusotine remains on track, with anticipated FDA approval expected in September 2025. The regulatory team has maintained excellent momentum, and the launch team has been assembled in preparation for the anticipated approval.
Commercial Launch Strategy for PALSONIFY
Crinetics has made meaningful progress in interactions with healthcare professionals, patients, and payers as they approach the launch of PALSONIFY. They have built out a commercial team and are onboarding a sales force to support the launch.
Pipeline Progress and Multiple Clinical Trials
Crinetics is advancing several clinical programs, including trials for carcinoid syndrome and congenital adrenal hyperplasia. They also plan to initiate a Phase II/III study for ACTH dependent Cushing's syndrome in 2026.
Strong Financial Position
Crinetics ended the quarter with $1.2 billion in cash, cash equivalents, and investments, with sufficient funds to operate into 2029. They have lowered the high end of their guidance for net cash used in operations for 2025.
Negative Updates
Increased Operating Expenses
Research and development expenses increased to $80.3 million from $76.2 million, and selling, general, and administrative expenses rose to $49.8 million from $35.5 million, reflecting strategic investments in clinical programs and commercial capabilities.
Challenges in Launch Uptake
The expected uptake for PALSONIFY after approval may be gradual due to factors such as formulary placement taking 6-9 months and infrequent patient visits to endocrinologists.
Company Guidance
During the Crinetics Pharmaceuticals Second Quarter 2025 Financial Results Conference Call, the company provided guidance on several key metrics and strategic initiatives. They reported a strong financial position with $1.2 billion in cash, cash equivalents, and investments, and a net cash usage of $77.8 million for the quarter. The company's research and development expenses were $80.3 million, while selling, general, and administrative expenses reached $49.8 million. Crinetics is anticipating the approval of its paltusotine NDA in September 2025 and has prepared for the launch of PALSONIFY, with a commercial team and approximately 30 sales representatives. They project a gradual adoption rate for PALSONIFY due to the infrequent visits of acromegaly patients to endocrinologists. The market research indicates that about 500 newly diagnosed patients per year and 11,000 currently diagnosed patients could be candidates for PALSONIFY, along with potentially 17,000 undiagnosed patients. Furthermore, the company has ongoing regulatory processes for other pipeline products, including atumelnant for congenital adrenal hyperplasia and CRN09682 for SST2 expressing solid tumors, with several pivotal programs set to initiate soon. Crinetics has also adjusted its cash usage guidance for 2025, now estimating $340 million to $370 million, down from the previous upper limit of $380 million, and plans to use its existing cash to fund operations into 2029.

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
35
Negative
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
45
Neutral
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
40
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.39M1.04M4.01M4.74M1.08M71.00K
Gross Profit-149.00K1.04M4.01M3.35M-184.00K-56.93M
EBITDA-420.58M-338.85M-221.51M-166.90M-106.78M-72.59M
Net Income-369.83M-298.41M-214.53M-163.92M-107.64M-72.86M
Balance Sheet
Total Assets1.29B1.43B635.35M352.18M351.01M183.44M
Cash, Cash Equivalents and Short-Term Investments1.20B1.35B558.55M334.43M333.71M170.88M
Total Debt49.94M51.72M51.73M3.08M3.07M4.01M
Total Liabilities118.05M109.79M96.25M35.85M19.07M14.53M
Stockholders Equity1.17B1.32B539.11M316.33M331.94M168.92M
Cash Flow
Free Cash Flow-307.80M-229.81M-171.00M-116.86M-89.02M-62.21M
Operating Cash Flow-301.80M-225.97M-166.31M-115.20M-88.59M-62.03M
Investing Cash Flow-569.49M-574.82M-200.41M-173.98M-56.48M217.00K
Financing Cash Flow622.86M1.01B388.94M121.96M252.68M114.57M

Crinetics Pharmaceuticals Technical Analysis

Technical Analysis Sentiment
Positive
Last Price34.25
Price Trends
50DMA
30.25
Positive
100DMA
30.84
Positive
200DMA
36.62
Negative
Market Momentum
MACD
0.93
Negative
RSI
66.49
Neutral
STOCH
90.39
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRNX, the sentiment is Positive. The current price of 34.25 is above the 20-day moving average (MA) of 30.25, above the 50-day MA of 30.25, and below the 200-day MA of 36.62, indicating a neutral trend. The MACD of 0.93 indicates Negative momentum. The RSI at 66.49 is Neutral, neither overbought nor oversold. The STOCH value of 90.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRNX.

Crinetics Pharmaceuticals Risk Analysis

Crinetics Pharmaceuticals disclosed 73 risk factors in its most recent earnings report. Crinetics Pharmaceuticals reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Crinetics Pharmaceuticals Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$4.33B19.3333.18%14.41%627.78%
58
Neutral
$3.56B-108.49%20.02%33.45%
53
Neutral
$2.98B-19.99%-63.73%
52
Neutral
$3.14B-36.94%-9.10%
51
Neutral
$7.91B-0.36-41.71%2.23%23.45%-1.86%
50
Neutral
$3.18B-172.08%-29.50%
45
Neutral
$2.63B-77.58%-48.38%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CRNX
Crinetics Pharmaceuticals
34.25
-16.14
-32.03%
ACAD
ACADIA Pharmaceuticals
25.50
9.43
58.68%
VKTX
Viking Therapeutics
26.53
-27.60
-50.99%
APLS
Apellis Pharmaceuticals
28.65
-12.40
-30.21%
SRRK
Scholar Rock Holding
32.44
24.41
303.99%
IMVT
Immunovant
16.12
-17.91
-52.63%

Crinetics Pharmaceuticals Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Crinetics Pharmaceuticals Presents at ENDO 2025 Meeting
Positive
Jun 30, 2025

On June 30, 2025, Crinetics Pharmaceuticals announced that it will present eight abstracts from its clinical development programs at the Endocrine Society’s Annual Meeting, ENDO 2025, in San Francisco. The presentations will include long-term efficacy and safety data on PALSONIFY for acromegaly, results from a Phase 2 trial of atumelnant for congenital adrenal hyperplasia, and early-stage data on CRN12755 for Graves’ hyperthyroidism. These developments highlight Crinetics’ commitment to addressing unmet needs in endocrine disorders and reinforce its position as a leader in endocrine-focused pharmaceutical innovation.

Product-Related AnnouncementsBusiness Operations and Strategy
Crinetics Pharmaceuticals Unveils Promising Preclinical Pipeline
Positive
Jun 26, 2025

On June 26, 2025, Crinetics Pharmaceuticals held a Research and Development Day in New York, presenting updates on its preclinical pipeline. Key highlights included the development of CRN12755 for Graves’ disease, CRN10329 for polycystic kidney disease, and CRN09682 for neuroendocrine tumors. The event showcased promising preclinical data and outlined strategic plans for clinical trials, indicating potential advancements in treatment options for these conditions.

Executive/Board ChangesShareholder Meetings
Crinetics Pharmaceuticals Holds Annual Stockholders Meeting
Positive
Jun 12, 2025

At the annual meeting of Crinetics Pharmaceuticals‘ stockholders held on June 11, 2025, key decisions were made, including the election of three Class I directors for three-year terms, the ratification of BDO USA, P.C. as the independent accounting firm, and the approval of executive compensation. These decisions reflect strong shareholder support and are likely to influence the company’s strategic direction and governance structure.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 23, 2025