JMP bumps Crinetics shares target on strong PATHFNDR study results By Investing.com
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On Wednesday, JMP Securities adjusted its share price target for Crinetics Pharmaceuticals (NASDAQ:), increasing it to $80 from the previous $60, while maintaining a Market Outperform rating. This change comes in light of recent clinical trial data that has surpassed expectations.
Crinetics Pharmaceuticals has reported notable findings from their PATHFNDR-2 study, which showed an IGF-1 response rate that exceeds that of current injectable somatostatin receptor ligands (SRLs).
The data indicated a consistency in response rates among patients who had previously been on SRLs, with an 80% responder rate compared to 79% in a similar population in the PATHFNDR-1 study. Treatment-naïve patients also demonstrated a 43% response rate, a significant improvement over the 2% for placebo.
The company’s investigational drug, paltusotine, has shown rapid effectiveness, with IGF-1 reductions observed as early as two weeks into treatment, a significant advantage over injectable SRLs which can take months to show a response. The safety profile of paltusotine has been positively received, with no discontinuations due to adverse events (AEs), no new safety concerns, and a 97% patient enrollment rate into the open-label extension phase.
The promising results from both PATHFNDR studies have led JMP Securities to anticipate a high likelihood of approval for paltusotine. If approved, paltusotine would be the first once-daily oral medication available for acromegaly, with an efficacy profile that is considered superior to existing treatments.
The convenience of an oral drug is expected to attract a significant number of patients, particularly those who are not achieving optimal disease control with current SRLs.
Based on these outcomes, JMP Securities predicts a strong market performance for paltusotine, with peak worldwide sales now estimated to reach $840 million, a substantial increase from the previous forecast of $450 million. This optimistic sales projection reflects the anticipated demand for a more convenient and effective treatment option for acromegaly patients.
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