Crinetics Pharmaceuticals Prices Upsized Public Stock Offering

SAN DIEGO, Oct. 8, 2024 — Crinetics Pharmaceuticals, Inc., a clinical-stage pharmaceutical company specializing in the discovery, development, and commercialization of novel therapies for endocrine diseases and related tumors, has announced the pricing of an increased underwritten public offering. The company will offer 10,000,000 shares of its common stock at a public price of $50.00 per share. Crinetics will sell all the shares included in the offering, expecting gross proceeds of approximately $500 million before the deduction of underwriting discounts, commissions, and other expenses.

Additionally, Crinetics has provided the underwriters with a 30-day option to purchase up to 1,500,000 additional shares of common stock. The offering is anticipated to close around October 10, 2024, assuming all customary closing conditions are met. The company intends to allocate the net proceeds from this offering, along with its existing cash, cash equivalents, and investment securities, towards the continuation of its research and development initiatives. This includes advancing clinical-stage product candidates, other research programs, pre-commercialization activities, and general corporate purposes such as potential capital expenditures or working capital.

Furthermore, Crinetics is considering using a portion of the remaining net proceeds, in combination with its existing resources, to in-license, acquire, or invest in complementary businesses, technologies, products, or assets. However, there are no current commitments or obligations for such actions.

The offering is led by Leerink Partners, Morgan Stanley, Piper Sandler, and Cantor, who are serving as joint bookrunning managers. LifeSci Capital, Baird, H.C. Wainwright & Co., and Citizens JMP are acting as lead managers, with Jones participating as co-manager. The securities for this offering are being provided by Crinetics under a shelf registration statement filed and automatically effective with the SEC.

A preliminary prospectus supplement has been filed with the SEC in relation to this offering, and a final prospectus supplement will be filed subsequently. This offering is only made through the means of a prospectus supplement coupled with an accompanying prospectus. Copies of these documents, when available, can be obtained from the bookrunning managers or through the SEC’s website.

The announcement specifies that this press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sale of these securities in any jurisdiction where such an offer, solicitation, or sale would be illegal without proper registration or qualification under the securities laws of that jurisdiction.

Crinetics Pharmaceuticals is dedicated to the innovative development of oral, small molecule drugs for treating endocrine diseases and tumors. The company's lead candidate, paltusotine, is an investigational once-daily oral nonpeptide agonist for somatostatin receptor type 2 (SST2). It has completed Phase 3 clinical development for acromegaly and is in Phase 2 for treating carcinoid syndrome associated with neuroendocrine tumors. Another key candidate, atumelnant (CRN04894), is an investigational oral ACTH antagonist, currently completing Phase 2 studies for congenital adrenal hyperplasia and Cushing’s disease.

Crinetics’ pipeline includes several other discovery programs targeting various endocrine conditions, such as hyperparathyroidism, polycystic kidney disease, Graves’ disease (including thyroid eye disease), diabetes, obesity, and oncology indications involving G-protein-coupled receptors (GPCRs). All drug candidates stem from in-house drug discovery efforts, highlighting Crinetics' commitment to advancing treatments for complex endocrine disorders.