SAN DIEGO - Crinetics Pharmaceuticals, Inc. (NASDAQ:CRNX), a biopharmaceutical company, has disclosed the departure of James Hassard as Chief Operating Officer and his subsequent engagement as a consultant, according to a recent SEC filing.
As stated in the Form 8-K filed on October 16, 2024, James Hassard's role as Chief Operating Officer ceased effective October 14, 2024. Following his departure, the company has entered into a Consulting Agreement with Hassard, effective from October 15, 2024, through January 15, 2025. Under this agreement, Hassard will provide up to 20 hours per month of consulting services related to the company's commercial activities and launch preparations for investigational medicinal products. He will be compensated at a rate of $200 per hour, in addition to being reimbursed for reasonable travel and out-of-pocket expenses incurred in the performance of these services.
In conjunction with this consulting role, Crinetics Pharmaceuticals has also entered into a Separation and Release Agreement with Hassard. This agreement stipulates that Hassard will receive payments and benefits consistent with a termination without cause as outlined in the Employment Agreement dated February 16, 2022. Furthermore, Hassard's outstanding equity awards will continue to vest through the end of the consulting agreement period.
The transition comes as Crinetics Pharmaceuticals continues to navigate the pharmaceutical preparations industry, with its headquarters located at 6055 Lusk Boulevard, San Diego, California. The company's focus remains on advancing its pipeline of investigational drugs.
The full text of both the Consulting Agreement and the Separation and Release Agreement can be found as exhibits in the SEC filing, which provides the basis for this report. The company's stock is traded on the Nasdaq Global Select Market under the ticker symbol CRNX.
Investors and stakeholders in Crinetics Pharmaceuticals may find these developments significant as the company adjusts its executive team and progresses with its strategic initiatives. The information reported is based on the company's statements in the SEC filing.
In other recent news, Crinetics Pharmaceuticals has made significant strides in its drug development efforts. The company has submitted a New Drug Application for paltusotine, a novel treatment for acromegaly, based on data from 18 clinical trials. Crinetics has also announced a $400 million underwritten public offering of common stock, with an additional option for underwriters to acquire up to $60 million in shares. The proceeds are intended to support research and development activities, pre-commercialization activities, and potential acquisitions.
Analysts from Piper Sandler and Oppenheimer have maintained a positive outlook on Crinetics Pharmaceuticals, reaffirming their Overweight and Outperform ratings, respectively. Piper Sandler's endorsement is rooted in the potential of Crinetics' drug atumelnant, which is being developed to treat conditions such as congenital adrenal hyperplasia and Cushing's disease. Further data on atumelnant are anticipated by the end of 2024.
In management changes, James Hassard, the Chief Commercial Officer of Crinetics Pharmaceuticals, is set to leave the company. Meanwhile, Jon Kuwahara, a seasoned finance professional, has been appointed to the board of Emmaus Life Sciences (OTC:EMMA), following the resignation of George Sekulich. These recent developments highlight the ongoing activities within Crinetics Pharmaceuticals.
InvestingPro Insights
As Crinetics Pharmaceuticals navigates this executive transition, InvestingPro data provides additional context for investors. The company's market capitalization stands at $5.31 billion, reflecting significant investor interest despite recent challenges.
An InvestingPro Tip highlights that CRNX holds more cash than debt on its balance sheet, which could provide financial flexibility during this period of change. This strong liquidity position is further supported by another tip indicating that liquid assets exceed short-term obligations.
However, it's important to note that CRNX is not currently profitable, with a negative P/E ratio of -20.5 for the last twelve months as of Q2 2024. This aligns with another InvestingPro Tip suggesting that analysts do not anticipate the company to be profitable this year.
Despite these financial challenges, CRNX has shown strong market performance, with a 96.52% price return over the past year and is trading near its 52-week high. This positive momentum could be crucial as the company continues its commercial preparations and launch activities for investigational medicinal products.
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for CRNX, providing deeper insights into the company's financial health and market position.
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