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Crinetics Pharmaceuticals (CRNX)
NASDAQ:CRNX
US Market

Crinetics Pharmaceuticals (CRNX) AI Stock Analysis

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Crinetics Pharmaceuticals

(NASDAQ:CRNX)

45Neutral
Crinetics Pharmaceuticals is currently facing financial challenges with persistent losses and cash flow issues, impacting its overall stock score negatively. Despite significant advancements in drug approvals and clinical trials, which provide optimism for future growth, the current bearish technical indicators and lack of profitability or dividends weigh heavily on the stock's attractiveness. The company's strategic focus and progress in regulatory milestones are encouraging but need to be balanced against its financial instability.
Positive Factors
Financial Position
Crinetics Pharmaceuticals ended the quarter with $1.4 billion in cash, cash equivalents, and investments, which should fund operations for an extended period.
Regulatory Progress
The FDA accepted Crinetics’ NDA for paltusotine for acromegaly with no Advisory Committee meeting anticipated, which is viewed as a positive signal for approval given the convincing clinical data.
Negative Factors
Safety Concerns
CRNX shares have been trading down following safety concerns from the Phase 2 atumelnant data in congenital adrenal hyperplasia (CAH) reported in January 2025.

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

Crinetics Pharmaceuticals Business Overview & Revenue Model

Company DescriptionCrinetics 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 MoneyCrinetics 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
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.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
1.04M4.01M4.74M1.08M71.00K
Gross Profit
1.04M4.01M3.35M-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 SheetCash, Cash Equivalents and Short-Term Investments
1.35B558.55M334.43M333.71M170.88M
Total Assets
1.43B635.35M352.18M351.01M183.44M
Total Debt
51.72M51.73M2.02M3.07M4.01M
Net Debt
-212.82M-3.17M-30.65M-197.62M-89.07M
Total Liabilities
109.79M96.25M35.85M19.07M14.53M
Stockholders Equity
1.32B539.11M-439.17M-275.25M-167.61M
Cash FlowFree 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-56.48M217.00K
Financing Cash Flow
1.01B388.94M121.96M252.68M114.57M

Crinetics Pharmaceuticals Technical Analysis

Technical Analysis Sentiment
Negative
Last Price34.26
Price Trends
50DMA
39.24
Negative
100DMA
48.11
Negative
200DMA
49.13
Negative
Market Momentum
MACD
-1.59
Negative
RSI
42.15
Neutral
STOCH
36.85
Neutral
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 34.26 is below the 20-day moving average (MA) of 34.65, below the 50-day MA of 39.24, and below the 200-day MA of 49.13, indicating a bearish trend. The MACD of -1.59 indicates Negative momentum. The RSI at 42.15 is Neutral, neither overbought nor oversold. The STOCH value of 36.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CRNX.

Crinetics Pharmaceuticals Risk Analysis

Crinetics Pharmaceuticals disclosed 72 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 (49)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$2.04B48.01-0.53%27.28%-101.63%
68
Neutral
$11.05B33.6914.16%24.81%33.67%
54
Neutral
$3.55B-214.50%29.01%23.93%
49
Neutral
$6.90B-0.08-53.01%2.43%24.84%-3.06%
45
Neutral
$3.14B-32.02%-0.12%
38
Underperform
$3.33B-74.17%-43.10%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CRNX
Crinetics Pharmaceuticals
34.26
-6.24
-15.41%
LGND
Ligand Pharma
105.79
33.03
45.40%
NBIX
Neurocrine
109.07
-32.73
-23.08%
RARE
Ultragenyx Pharmaceutical
40.29
-8.26
-17.01%
IMVT
Immunovant
19.12
-12.70
-39.91%

Crinetics Pharmaceuticals Earnings Call Summary

Earnings Call Date: Feb 27, 2025 | % Change Since: 3.16% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant progress in regulatory milestones, clinical trial advancements, and financial stability. However, it also noted challenges such as revenue decline, increased net loss, and high anticipated cash burn. Overall, the positive developments in drug approvals and clinical trials suggest optimism for future growth.
Highlights
NDA Acceptance for Paltusotine
The FDA accepted the NDA for paltusotine for acromegaly with a PDUFA date of September 25, 2025. This is Crinetics' first NDA filing.
Positive Clinical Data for Paltusotine and Atumelnant
Paltusotine showed rapid, sustained reductions in carcinoid symptoms in Phase II, while Atumelnant demonstrated significant biomarker and symptom improvements in CAH and Cushing's disease trials.
Strong Financial Position
Crinetics ended 2024 with approximately $1.4 billion in cash and investments, expected to fund operations into 2029.
Expansion into European Market
Crinetics is preparing for EMA filing for paltusotine in acromegaly and has established a hub in Switzerland to expand into the European market.
IND Submissions for 2025
Crinetics plans to submit 4 INDs in 2025, including for the SST2-targeting NDC 9682 for tumors, PTH antagonist for hyperparathyroidism, TSH antagonist for hyperthyroidism, and SST3 agonist for ADPKD.
Lowlights
Revenue Decline
Full year 2024 revenues were $1 million compared to $4 million in 2023, with no revenues in the last quarter.
Increased Net Loss
Net loss for 2024 was $298.4 million, up from $214.5 million in 2023, due to higher R&D and G&A expenses.
High Anticipated Cash Burn
Cash burn for 2025 is projected to be between $340 million and $380 million, reflecting increased trial and commercial preparation expenses.
Safety Concerns in Atumelnant Trials
One patient in Atumelnant's Phase II trial for CAH experienced elevated liver enzymes, raising some safety concerns.
Company Guidance
During the 2025 conference call, Crinetics Pharmaceuticals provided guidance for the upcoming year, highlighting several key metrics and milestones. The company announced its first NDA filing for paltusotine, targeting a PDUFA date of September 25, 2025, and plans to launch the drug for acromegaly treatment by the end of the year. Additionally, Crinetics is preparing to file an MAA with the EMA within the first half of 2025. The company is also advancing atumelnant into Phase III trials for CAH and Cushing's disease, highlighting promising Phase II data with rapid and substantial reductions in key biomarkers. Financially, Crinetics ended 2024 with $1.4 billion in cash and investments, projecting a 2025 cash burn of $340-$380 million, facilitating the initiation of four late-stage trials. The company's strategic growth into Europe is supported by a new hub in Zug, Switzerland, and an expansion into Germany, with a focus on building a robust commercial infrastructure.

Crinetics Pharmaceuticals Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Crinetics Pharmaceuticals Appoints New Chief Financial Officer
Positive
Feb 24, 2025

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.

Product-Related AnnouncementsBusiness Operations and Strategy
Crinetics Pharmaceuticals Outlines 2025 Strategic Priorities
Positive
Jan 14, 2025

At the J.P. Morgan Healthcare Conference in January 2025, Crinetics Pharmaceuticals outlined its 2025 priorities, including increasing commercial readiness for the potential U.S. launch of paltusotine, pending FDA approval, and advancing clinical development of atumelnant. These efforts reflect Crinetics’ strategic focus on endocrine conditions, aiming to position the company as a leader in this niche market by enhancing patient access to innovative treatments.

Product-Related AnnouncementsBusiness Operations and Strategy
Crinetics Pharmaceuticals Advances Atumelnant After Successful Phase 2
Positive
Jan 10, 2025

Crinetics Pharmaceuticals announced positive topline results from its Phase 2 study of atumelnant, an ACTH receptor antagonist candidate for treating congenital adrenal hyperplasia (CAH). The study showed significant reductions in key biomarkers and improvements in clinical signs, supporting the initiation of a Phase 3 trial. With atumelnant being well-tolerated and showing no severe adverse events, Crinetics aims to advance its development, furthering its strategy to become a leading global endocrine company.

Executive/Board ChangesBusiness Operations and Strategy
Crinetics Pharmaceuticals Strengthens Leadership with New Appointment
Positive
Dec 16, 2024

Crinetics Pharmaceuticals has appointed Isabel Kalofonos as the Chief Commercial Officer to lead the commercial strategy for launching paltusotine, an innovative treatment for acromegaly. With over 20 years of experience in the pharmaceutical and biotech industry, Kalofonos’s appointment suggests a strategic move by Crinetics to strengthen its market position and enhance its pipeline commercialization efforts, potentially impacting stakeholders by advancing new treatments in the endocrine disorders sector.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.