RARE Daily

Crinetics Raises $350 Million to Advance Rare Endocrine Pipeline

February 28, 2024

Crinetics Pharmaceuticals is raising $350 in an oversubscribed private financing to advance its pipeline of candidates targeting rare endocrine diseases and endocrine-related tumors.

The company is selling 8.3 million shares of its common stock at $42.00 per share to a select group of institutional and accredited healthcare specialist investors with gross proceeds expected to be approximately $350 million, before deducting any offering-related expenses.

Crinetics intends to use the net proceeds from the private placement to fund research and development of its clinical-stage product candidates, other research programs, working capital and general corporate purposes.

Lead candidate paltusotine is an investigational, first-in-class, oral somatostatin receptor type 2 agonist in phase 3 clinical development for acromegaly and phase 2 clinical development for carcinoid syndrome associated with neuroendocrine tumors.

Crinetics has demonstrated pharmacologic proof-of-concept in a phase 1 clinical study for CRN04894, a first-in-class, investigational, oral ACTH antagonist, that is currently in phase 2 clinical studies for the treatment of Cushing’s disease and congenital adrenal hyperplasia.

All of the company’s drug candidates are orally delivered, small molecule new chemical entities resulting from in-house drug discovery efforts, including additional discovery programs addressing a variety of endocrine conditions such as hyperparathyroidism, polycystic kidney disease, Graves’ disease, thyroid eye disease, hyperinsulinism, diabetes, and obesity.

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