SAN DIEGO – Today, Crinetics Pharmaceuticals (NASDAQ:CRNX), Inc., a biopharmaceutical company based in San Diego, announced an at-the-market sales agreement with Leerink Partners LLC and Cantor Fitzgerald & Co. Under the terms of the agreement, Crinetics will have the option to sell shares of its common stock from time to time through the agents.
The shares in question are common stock, with a par value of $0.001 each. The method of sale is expected to be an “at-the-market offering,” which allows shares to be sold on the open market at current prices. The agents, Leerink Partners LLC and Cantor Fitzgerald & Co., will earn a commission of 3.0% on the gross sales price of each share sold.
This agreement does not require Crinetics to sell a set number of shares but provides a mechanism for the company to raise capital as needed, using the agents' sales efforts in line with their standard trading practices. No funds will be held in escrow or similar arrangements in connection with the sales.
Concurrently with the sales agreement, Crinetics Pharmaceuticals has filed a prospectus supplement with the Securities and Exchange Commission (SEC), under its existing shelf registration statement. This filing allows the company to offer and sell up to $350 million worth of shares.
The sales agreement and the prospectus supplement filed today follow the company's strategy to strengthen its financial position and support ongoing operations. The details of the sales agreement are outlined in the Exhibit 1.1 of the SEC filing, which is incorporated by reference.
Crinetics Pharmaceuticals, listed on the Nasdaq Global Select Market under the ticker NASDAQ:CRNX, specializes in pharmaceutical preparations. The company's engagement in this at-the-market offering reflects a common practice among public companies seeking to finance their activities without the constraints of a traditional underwritten public offering.
This news is based on a press release statement from Crinetics Pharmaceuticals, Inc. and has been reported in accordance with the SEC filing.
In other recent news, Crinetics Pharmaceuticals has made substantial strides in its drug development. Encouraging trial data has led to Piper Sandler maintaining an Overweight rating and a $97.00 stock price target for Crinetics. The company reported positive outcomes from its Congenital Adrenal Hyperplasia (CAH) study and promising early results in Cushing's disease. The firm plans to initiate Phase 3 trials for CAH in 2025.
Additionally, Oppenheimer raised its price target on Crinetics to $74, emphasizing the potential of atumelnant, a drug candidate for CAH and ACTH-dependent Cushing's syndrome. Meanwhile, Crinetics' drug paltusotine has shown promising results in trials for acromegaly, with plans to complete its New Drug Application submission in 2024.
Several analyst firms have raised their price targets on Crinetics, including Morgan Stanley to $70 and Baird to $62, based on the promising data for atumelnant. These recent developments underscore the company's progress in addressing rare endocrine diseases.
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