Crinetics Pharmaceuticals Raises $350M in Private Placement

Crinetics Pharmaceuticals, Inc. (NASDAQ: CRNX) has announced an oversubscribed private placement, with the company set to sell 8,333,334 shares of its common stock at a price of $42.00 per share. This move is expected to generate gross proceeds of approximately $350 million.

The private placement is set to close on or about March 1, 2024, and includes participation from both new and existing institutional investors, as well as leading mutual funds. The financing is being facilitated by placement agents including Leerink Partners, Piper Sandler, Baird, Citizens JMP, H.C. Wainwright & Co., and LifeSci Capital.

The net proceeds from this private placement will be utilized by Crinetics Pharmaceuticals to fund research and development of its clinical-stage product candidates, other research programs, working capital, and general corporate purposes.

Crinetics Pharmaceuticals is a clinical stage pharmaceutical company focused on the discovery, development, and commercialization of novel therapeutics for endocrine diseases and endocrine-related tumors. Its pipeline includes paltusotine, an investigational, first-in-class, oral somatostatin receptor type 2 (SST2) agonist, which is in phase 3 clinical development for acromegaly and phase 2 clinical development for carcinoid syndrome associated with neuroendocrine tumors.

Additionally, the company has demonstrated pharmacologic proof-of-concept in a phase 1 clinical study for crn04894, an investigational, oral ACTH antagonist, currently in phase 2 clinical studies for the treatment of congenital adrenal hyperplasia and Cushing’s disease.

All of Crinetics Pharmaceuticals' drug candidates are orally delivered, small molecule new chemical entities resulting from in-house drug discovery efforts, including additional discovery programs addressing various endocrine conditions such as hyperparathyroidism, polycystic kidney disease, Graves’ disease, thyroid eye disease, diabetes, and obesity. On Friday the company's shares moved 12.4% to a price of $46.03. If you want to know more, read the company's complete 8-K report here.

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