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Mar 31, 2020

Crinetics Q1 2020 Earnings Report

Crinetics reported first quarter 2020 financial results and provided a corporate update.

Key Takeaways

Crinetics Pharmaceuticals reported positive interim results for its ACROBAT Edge Phase 2 trial of oral paltusotine in acromegaly treatment and completed a public offering, raising $107.9 million in net proceeds. The company's pipeline advancements and focus on paltusotine for acromegaly and NETs were also highlighted.

Reported positive interim results from ACROBAT Edge Phase 2 trial of paltusotine in acromegaly patients, showing maintenance of IGF-1 levels.

Discontinued new enrollment in the ACROBAT Evolve trial to focus on paltusotine development.

Completed a public offering in April, raising approximately $107.9 million to strengthen the balance sheet.

Advanced pipeline programs, including oral nonpeptide ACTH antagonist and SST5 agonist, with Phase 1 trials planned for late 2020 or early 2021.

Total Revenue
$71K
Previous year: $367K
-80.7%
EPS
-$0.71
Previous year: -$0.37
+91.9%
R&D Expenses
$13.9M
Previous year: $7.26M
+91.1%
G&A Expenses
$3.99M
Previous year: $3.16M
+26.5%
Cash and Investments
$113M
Previous year: $118M
-4.7%
Cash and Equivalents
$113M
Total Assets
$124M

Crinetics

Crinetics

Forward Guidance

Crinetics is focused on advancing its pipeline, particularly paltusotine, through key milestones, including Phase 3 trials and Phase 2 trials. The company anticipates PK/PD data from human proof-of-concept studies in the first half of 2021.

Positive Outlook

  • Potential for interim data results to be consistent with final results.
  • Potential benefits of paltusotine for acromegaly patients.
  • Potential to initiate a pivotal Phase 3 trial of paltusotine in acromegaly.
  • Planned expansion of the paltusotine development program to include the treatment of patients with NETs.
  • Anticipated timing of topline data for Edge and Evolve and the initiation of proof-of-concept Phase 1 trials and timing of PK/PD data for its other development programs.

Challenges Ahead

  • Interim results of a clinical trial do not necessarily predict final results.
  • Potential delays in the commencement, enrollment and completion of clinical trials and the reporting of data therefrom.
  • Advancement of paltusotine into a Phase 3 trial is dependent on and subject to the receipt of further feedback from the FDA.
  • The COVID-19 pandemic may disrupt Crinetics’ business and that of the third parties on which it depends.
  • Unexpected adverse side effects or inadequate efficacy of the company’s product candidates may limit their development, regulatory approval and/or commercialization.