Crinetics price target raised to $56 following positive clinical data From Investing.com
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Jones Trading on Tuesday maintained a Buy rating on Crinetics Pharmaceuticals (NASDAQ:NASDAQ:) and increased its price target to $56 from $52 previously following the release of promising clinical trial results. The company announced successful topline data from the Phase 3 PATHFNDR-2 study evaluating paltusotine in patients with acromegaly, a hormonal disorder.
Trial data showed that paltusotine met its primary endpoint in a significant proportion of patients treated with the drug, achieving target levels of IGF-1, a biomarker for acromegaly. Specifically, 56% of the paltusotine-treated group had IGF-1 levels below the upper limit of normal, whereas only 5% of the placebo-treated group showed statistically significant results.
Jones Trading emphasized that the trial’s results exceeded the 30% response benchmark set by company executives and were consistent with the expectations of surveyed endocrinologists, who predicted a 50% to 70% response rate in drug-naive patients. The analysts noted that these results establish paltusotine as a leading treatment option in the field of acromegaly.
The analyst also highlighted the potential for Crinetics to impact the broader somatostatin receptor ligand (SRL) market, which is worth approximately $6 billion. The positive clinical results of paltusotine in acromegaly suggest that the drug could be very competitive in this market segment.
In addition to recent test results, analysts’ optimism is further bolstered by Crinetics’ upcoming milestones. The company plans to release Phase 2 clinical data for congenital adrenal hyperplasia (CAH) in the second quarter of 2024, and plans to initiate clinical studies for other pipeline assets in 2025. These developments have increased Paltusotine’s chances of success. Supports decision to increase target price from 80% to 95% in acromegaly.
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