Crinetics Pharmaceuticals Launches Major Public Offering for Growth

Crinetics Pharmaceuticals Launches Major Public Offering

Crinetics Pharmaceuticals, Inc. (NASDAQ: CRNX), a pioneering clinical-stage pharmaceutical company specializing in the development of groundbreaking therapeutics for endocrine diseases and related tumors, has made a noteworthy announcement regarding an upsized public offering. This initiative involves the sale of 10,000,000 shares of common stock, priced at $50.00 per share. Remarkably, all shares being offered will be sold directly by Crinetics, which anticipates gross proceeds amounting to $500 million before accounting for any underwriting discounts and other expenses associated with the offering.

Anticipated Uses of Proceeds

Crinetics is dedicating the net proceeds from this offering towards bolstering its research and development efforts surrounding its clinical-stage candidates. This includes further advancements in other research programs and various pre-commercialization activities. Additionally, these funds will support general corporate purposes, which may encompass capital expenses or working capital needs. There is also potential for a portion of the proceeds to be allocated toward in-licensing or acquiring complementary businesses or technologies, although currently, there are no fixed commitments or obligations regarding such acquisitions.

Leadership in Underwriting

The underwriting process is being managed by notable firms including Leerink Partners, Morgan Stanley, Piper Sandler, and Cantor, who act as joint bookrunning managers for this public offering. Alongside them, LifeSci Capital, Baird, H.C. Wainwright & Co., and Citizens JMP serve as lead managers, with Jones acting as co-manager.

Regulatory Compliance and Subscription Information

The shares being offered are part of a shelf registration statement that became effective following its submission to the Securities and Exchange Commission (SEC). A preliminary prospectus supplement has been recorded, and a final prospectus supplement will also be filed with the SEC. In the forthcoming days, copies of the final prospectus and related documents will be obtainable from Leerink Partners LLC or Morgan Stanley & Co. LLC, along with availability on the SEC's website.

Company Overview

Crinetics Pharmaceuticals is devoted to the discovery, development, and marketing of innovative treatments targeting endocrine disorders and tumors. Their leading candidate is paltusotine, which has made significant strides in clinical development. It is recognized as the first oral, selectively-targeted somatostatin receptor type 2 (SST2) nonpeptide agonist, currently entering Phase 2 trials for carcinoid syndrome associated with neuroendocrine tumors.

Innovative Therapeutic Development

Crinetics is also advancing atumelnant (CRN04894), a unique oral ACTH antagonist, which is nearing the conclusion of Phase 2 studies aimed at treating congenital adrenal hyperplasia and Cushing’s disease. All drug candidates under development stem from Crinetics' in-house discoveries and focus on delivering small, chemically unique entities that address a broad spectrum of endocrine issues, from hyperparathyroidism to various oncological indications.

Frequently Asked Questions

What is the purpose of the public offering by Crinetics Pharmaceuticals?

The public offering aims to generate funds to enhance research and development for clinical candidates, which includes expanding ongoing projects and supporting commercialization efforts.

How many shares are being offered in the public offering?

Crinetics is offering a total of 10,000,000 shares of its common stock in this public offering.

What is the expected outcome of this offering?

The offering is anticipated to close shortly after the closing conditions are fulfilled, with expected gross proceeds of around $500 million before any deductions.

Who is managing the public offering?

Major financial partners including Leerink Partners, Morgan Stanley, Piper Sandler, and Cantor are jointly managing the underwriting process for this public offering.

How can investors obtain the prospectus for the offering?

Copies of the final prospectus and its supplement will be available through Leerink Partners and Morgan Stanley, and on the SEC’s website once finalized.

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