Shares of Crinetics Pharmaceuticals Inc. (CRNX) gained over 4% in premarket trading on Thursday following positive coverage from Oppenheimer analysts. The analysts have initiated coverage of the company’s shares with an outperform rating, referring to Crinetics as ‘drug hunters in their zone.’
Focusing on Rare Endocrine Diseases
Crinetics Pharmaceuticals mainly focuses on developing treatments for rare endocrine diseases. The analysts, in a note on Wednesday, highlighted that current drugs in this area have risk-benefit tradeoffs that leave much room for improvement. In certain cases, approved treatment options are completely lacking.
Improving Treatment for Endocrine Disorders
Drawing upon its non-peptide drug discovery capability, Crinetics is well positioned to significantly enhance treatments for a growing number of endocrine disorders. The analysts believe that the company’s investigational treatment paltusotine is on track to become the preferred therapy for acromegaly, a severe disease characterized by excessive production of growth hormone.
Price Target and Stock Performance
Oppenheimer analysts have set a price target of $40 for Crinetics Pharmaceuticals Inc. stock. As of year-to-date, the stock has experienced a 9.7% decrease, while the S&P 500 has gained 17.6%.