Crinetics Secures $350M to Fast-Track Rare Endocrine and Oncology Therapies

Crinetics Pharmaceuticals, a clinical-stage biopharmaceutical company based in San Diego, California, has successfully secured $350 million through a private funding round. This significant financing effort saw participation from several prominent institutions and investors in the healthcare sector, including Adage Capital Partners L.P., Driehaus Capital Management, EcoR1 Capital, First Light Asset Management, Gordon Global Investments LP, Invus, Janus Henderson Investors, Lot BioCapital, Perceptive Advisors, and Rock Springs Capital.

Established in 2008 by Dr. Scott Struthers, Crinetics Pharmaceuticals is dedicated to developing novel therapies for rare endocrine diseases and endocrine-related cancers. The company's research has revealed the significant roles played by more than 130 peptide hormone receptors in regulating human physiological processes. These receptors are often overexpressed in various cancers, making them key targets for therapeutic intervention.

Using its proprietary technology platform, Crinetics aims to develop small molecules that can target these receptors. These small molecules can be used to deliver radioactive isotopes for PET imaging or targeted radiotherapy, thereby enhancing the efficacy of cancer treatments by directing them specifically to cancer cells.

In collaboration with 5AM Ventures and Frazier Healthcare Partners, Crinetics established an independent company, Radionetics Oncology, in October 2021. Radionetics was granted the global exclusive license to Crinetics' radiotherapy technology platform and successfully raised $30 million in its initial financing round. By June 2024, Radionetics Oncology had formed a strategic partnership with Lilly, securing $140 million in advance payments to advance the development of small molecule radioactive ligand therapies targeting G protein-coupled receptors. Lilly also obtained the option to purchase related chemical derivatives for up to $1 billion.

Crinetics’ development pipeline is primarily focused on rare endocrine diseases and endocrine-related cancers. The company's leading drug candidate, CRN00808, is a somatostatin receptor type 2 (SSTR2) agonist currently undergoing clinical trials for acromegaly and neuroendocrine tumors. CRN00808 is anticipated to enter the commercialization phase as early as next year.

The newly acquired $350 million in financing will be allocated to expedite the development of Crinetics' clinical-stage drug candidates, support ongoing research programs, and bolster the company's overall operations and corporate strategy. As of July 31, 2024, Crinetics Pharmaceuticals has a market capitalization of $41.89 billion. The company forecasts a market capitalization of $538.5 billion by 2030, driven by a compound annual growth rate of 7.34%. This growth is expected to meet the increasing demand for advanced endocrine therapies and address significant unmet needs in the market.

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