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Jones Trading on Tuesday maintained its investment rating on Crinetics Pharmaceuticals (NASDAQ:NASDAQ:) at “buy” and increased its price target to $56 from $52 following the announcement of promising clinical trial results. I pulled it up. The company announced successful topline data from the Phase 3 PATHFNDR-2 trial evaluating paltusotine in patients with the hormonal disorder acromegaly.
Trial data showed that paltusotine met its primary endpoint, with a significant proportion of patients treated with the drug achieving target levels of IGF-1, a biomarker for acromegaly. Specifically, 56% of subjects who received paltusotine reached their IGF-1 levels below the upper limit of normal, compared to only 5% in the placebo group, a statistically significant result. did.
Jones Trading said the trial's results exceeded the 30% response benchmark set by company management and exceeded the expectations of endocrinologists surveyed, who expected a response rate of 50% to 70% in drug-naïve patients. He emphasized that it is consistent with the Analysts noted that these results position paltusotine as a leading treatment option in the acromegaly field.
Additionally, analysts highlighted Crinetics' potential to impact the broader somatostatin receptor ligand (SRL) market, valued at approximately $6 billion. The favorable clinical outcomes of paltusotine in acromegaly suggest that this drug has the potential to be highly competitive within this market segment.
In addition to recent trial results, Crinetics' upcoming milestones add to analyst optimism. The company plans to release Phase 2 data in congenital adrenal hyperplasia (CAH) in the second quarter of 2024 and plans to begin clinical studies on other pipeline assets in 2025. These developments have increased the success rate of paltusotin. Acromegaly increased from 80% to 95%, confirming the decision to raise the price target.
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