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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)

Rating:53Neutral
Price Target:
$32.00
▲(0.72%Upside)
Crinetics Pharmaceuticals exhibits significant financial challenges, impacting its overall score. While technical analysis and corporate events provide some positive insights, the negative valuation metrics and financial instability are major concerns. Strategic initiatives and a strong cash position offer potential future upside.
Positive Factors
Financial Stability
The company finished the quarter with $1.3B in cash, cash equivalents, and investments, which is expected to fund operations into 2029.
Regulatory Progress
There is excitement about paltusotine in acromegaly, with important regulatory decisions expected.
Negative Factors
Investor Concerns
Two LFT elevations in CAH patients were reported in Phase 2 that is causing some concern among investors.
Safety Concerns
The stock is down due to safety questions and the magnitude of A4 reduction being less robust than the initial Phase 2 results.

Crinetics Pharmaceuticals (CRNX) vs. SPDR S&P 500 ETF (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 targeting endocrine diseases and cancers. The company specializes in developing oral small-molecule drugs that address significant unmet needs in endocrinology, with a pipeline including treatments for conditions such as acromegaly, neuroendocrine tumors, and congenital adrenal hyperplasia.
How the Company Makes MoneyCrinetics Pharmaceuticals primarily generates revenue through the development and potential commercialization of its proprietary drug candidates. The company invests in research and development to advance its pipeline through various stages of clinical trials, aiming to obtain regulatory approval for its products. Revenue is expected to be realized upon successful approval and commercialization of these therapies, either through direct sales or partnerships with larger pharmaceutical companies for distribution and marketing. Additionally, Crinetics may engage in strategic collaborations or licensing agreements that provide upfront payments, milestone payments, and royalties based on sales performance.

Crinetics Pharmaceuticals Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2025)
|
% Change Since: -2.84%|
Next Earnings Date:Aug 08, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook for Crinetics Pharmaceuticals, Inc. with significant progress in regulatory approvals, strong financial positioning, and preparations for the commercial launch of paltusotine. However, the decrease in revenue and increase in operating expenses present challenges.
Q1-2025 Updates
Positive Updates
Strong Financial Position
Crinetics Pharmaceuticals, Inc. ended the first quarter of 2025 with approximately $1.3 billion in cash, cash equivalents, and investments, expected to fund operations into 2029.
Anticipated Commercial Launch of Paltusotine
Preparations are on track for the commercial launch of paltusotine in September 2025, with positive feedback from healthcare professionals and payers.
Robust Pipeline Advancements
Advancing a robust pipeline with two late-stage candidates, an IND-cleared candidate, and three preclinical candidates, indicating strong future growth potential.
Regulatory Progress in the US and EU
No disruptions in regulatory reviews for paltusotine in the US and EU, with the European Medicines Agency granting orphan drug designation.
Positive Feedback on Paltusotine's Value Proposition
Paltusotine's value proposition is resonating well with payers, focusing on fast onset of action, durability, and ease of use.
Negative Updates
Decrease in Revenue
Recognized $400,000 of revenue in Q1 2025 compared to $600,000 in the same period in 2024.
Increase in Operating Expenses
R&D expenses increased by 43% to $76.2 million, and SG&A expenses increased by 71% to $35.5 million compared to the same period in 2024.
Higher Cash Usage in Operations
Cash used in operations was $88.5 million for the first quarter of 2025, up from $52.9 million in 2024.
Company Guidance
In the recent call, Crinetics Pharmaceuticals, Inc. highlighted robust financial and strategic positioning for 2025, emphasizing key metrics and milestones. They reported $400,000 in revenue for Q1 2025, down from $600,000 in the same period in 2024, and noted a significant 43% increase in R&D expenses to $76.2 million, primarily driven by personnel and clinical program advancements. SG&A expenses also rose by 71% to $35.5 million, reflecting preparations for the anticipated September launch of paltusotine, a treatment for acromegaly. With $1.3 billion in cash reserves, the company is set to fund operations into 2029. The launch strategy for paltusotine focuses on establishing strong patient and payer engagement, with approximately 30 sales reps expected by summer 2025. Regulatory activities are proceeding as planned, with a decision on the paltusotine NDA expected by September 2025. The company is also advancing its pipeline with late-stage candidates and preparing for a Phase III study of adomelnet for congenital adrenal hyperplasia (CAH), reflecting a strategic focus on addressing significant unmet needs in endocrine diseases.

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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
760.00K1.04M4.01M4.74M1.08M71.00K
Gross Profit
7.00K-1.75M4.01M3.35M-184.00K-56.93M
EBIT
-376.73M-338.85M-222.61M-167.88M-107.70M-74.95M
EBITDA
-373.49M-338.85M-221.51M-166.90M-106.78M-72.59M
Net Income Common Stockholders
-328.25M-298.41M-214.53M-159.95M-106.72M-72.86M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.27B1.35B558.55M334.43M333.71M170.88M
Total Assets
1.36B1.43B635.35M352.18M351.01M183.44M
Total Debt
50.82M51.72M51.73M2.02M3.07M4.01M
Net Debt
-43.75M-212.82M-3.17M-30.65M-197.62M-89.07M
Total Liabilities
107.33M109.79M96.25M35.85M19.07M14.53M
Stockholders Equity
1.25B1.32B539.11M-439.17M-275.25M-167.61M
Cash FlowFree Cash Flow
-265.32M-229.81M-171.00M-116.86M-89.02M-62.21M
Operating Cash Flow
-261.57M-225.97M-166.31M-115.20M-88.59M-62.03M
Investing Cash Flow
-661.09M-574.82M-200.41M-173.98M-56.48M217.00K
Financing Cash Flow
621.30M1.01B388.94M121.96M252.68M114.57M

Crinetics Pharmaceuticals Technical Analysis

Technical Analysis Sentiment
Negative
Last Price31.77
Price Trends
50DMA
31.05
Positive
100DMA
33.28
Negative
200DMA
43.30
Negative
Market Momentum
MACD
0.17
Negative
RSI
46.96
Neutral
STOCH
29.35
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 31.77 is above the 20-day moving average (MA) of 31.34, above the 50-day MA of 31.05, and below the 200-day MA of 43.30, indicating a neutral trend. The MACD of 0.17 indicates Negative momentum. The RSI at 46.96 is Neutral, neither overbought nor oversold. The STOCH value of 29.35 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 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 (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$3.63B15.8137.24%22.42%
54
Neutral
$5.34B3.27-45.10%3.30%16.80%0.02%
53
Neutral
$2.98B-30.84%-1.20%
53
Neutral
$2.93B-14.40%-23.84%
52
Neutral
$2.37B-103.82%48.04%48.16%
50
Neutral
$3.08B-106.71%-22.34%
45
Neutral
$2.68B-62.46%-43.10%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CRNX
Crinetics Pharmaceuticals
31.20
-13.09
-29.56%
ACAD
ACADIA Pharmaceuticals
22.14
7.27
48.89%
VKTX
Viking Therapeutics
26.96
-23.68
-46.76%
APLS
Apellis Pharmaceuticals
18.30
-21.77
-54.33%
SRRK
Scholar Rock Holding
32.13
23.64
278.45%
IMVT
Immunovant
15.49
-10.70
-40.86%

Crinetics Pharmaceuticals Corporate Events

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.

The most recent analyst rating on (CRNX) stock is a Buy with a $62.00 price target. To see the full list of analyst forecasts on Crinetics Pharmaceuticals stock, see the CRNX Stock Forecast page.

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.