On Monday, Oppenheimer reaffirmed a positive outlook on Crinetics Pharmaceuticals, Inc. (NASDAQ:CRNX), maintaining an Outperform rating with a steady price target of $74.00. The confidence comes after Radionetics Oncology, a company spun off by Crinetics in 2021, entered into a significant strategic partnership with pharmaceutical giant Eli Lilly and Company (NYSE:LLY). In this deal, Eli Lilly will progress Radionetics' GPCR-targeted radiopharmaceutical pipeline.
Under the terms of the partnership, Radionetics will receive an upfront payment of $140 million. Additionally, Eli Lilly has secured an exclusive option to acquire Radionetics for a sum of $1 billion. This move by Eli Lilly follows its recent acquisition of POINT Biopharma for $1.4 billion, signaling a growing commitment to the radiopharmaceutical space.
Oppenheimer's stance reflects an expectation that Radionetics will continue to add value to Crinetics over time, potentially benefiting from Eli Lilly's robust presence and expertise in the pharmaceutical industry. The partnership and the associated upfront payment are anticipated to contribute to the advancement of Radionetics' pipeline and, by extension, to Crinetics' growth prospects.
In other recent news, Crinetics Pharmaceuticals has been making significant strides in drug development, with encouraging trial data and positive analyst outlooks. Piper Sandler maintained its Overweight rating for the company following the presentation of positive outcomes from its Congenital Adrenal Hyperplasia (CAH) study. Additionally, Crinetics revealed promising data in Cushing's disease, further underscoring its potential in addressing endocrine disorders.
In the realm of acromegaly treatment, Crinetics' investigational drug, paltusotine, demonstrated positive outcomes in a series of trials. The company plans to complete its New Drug Application submission for paltusotine in the second half of 2024.
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