Crinetics Pharma Shares Soar 35% After FDA Approves Acromegaly Drug

Shares of Crinetics Pharmaceuticals (NASDAQ:CRNX) surged by over 35% following FDA approval of its drug Palsonify for the treatment of acromegaly, based on strong Phase 3 trial results demonstrating rapid and sustained efficacy. The drug is priced at $290,000 per year, significantly higher than expectations, which has positively influenced analyst sentiment. Several financial firms, including Stifel and Leerink Partners, have raised their price targets for CRNX, with Leerink increasing its target to $88 and maintaining an "Outperform" rating, while Stifel raised theirs to $75. Analysts generally expect substantial upside potential for CRNX shares, with average price targets implying an upside of over 70% from current prices. The company is also pursuing marketing approval in Europe and has a partnership in Japan for regional commercialization. Despite the excitement around CRNX, some investors remain focused on AI stocks, which they believe offer stronger returns with less downside risk.