Shares of the pharmaceutical company Crinetics Pharmaceuticals (NASDAQ:CRNX) have shot up nearly 37% in the pre-market session today after it announced positive results from a Phase 3 study evaluating paltusotine for the treatment of acromegaly.
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The oral, once-daily, investigational candidate achieved primary and all secondary endpoints in the trial. Impressively, 83% of subjects taking paltusotine maintained an insulin-like growth factor 1 (IGF-1) level as compared to 4% for subjects on placebo. Acromegaly, a rare disease, is caused by a benign tumor in the pituitary that secretes growth hormone. This leads to excess secretion of IGF-1 from the liver.
The drug provides a convenient oral alternative to the burden of taking injections for patients, and the trial results indicate that paltusotine maintains symptom control and biochemical control when switching from a monthly injection regimen. Furthermore, the drug was observed to be well-tolerated with no serious or severe adverse events.
Next, top-line data from another Phase 3 study evaluating paltusotine in acromegaly is anticipated in the first quarter of 2024, and the company plans to submit a new drug application for the drug in the U.S. next year.
Overall, the Street has a consensus price target of $47.14 on Crinetics, alongside a Strong Buy consensus rating. This implies a massive 195% potential upside in the stock.
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