Crinetics 2025 Q1 Earnings Misses Targets as Net Loss Widens 44.6%

Crinetics Pharmaceuticals reported its fiscal 2025 Q1 earnings on May 8, 2025. The company saw a significant decline in revenue, dropping 43.6% compared to the same quarter last year. The net loss widened substantially, with a 44.6% increase from the previous year's figures. Despite these challenges, Crinetics remains optimistic about its future, anticipating regulatory approval and commercial launch of its lead product, paltusotine, later this year. Guidance remains in line with previous forecasts.

Revenue

Crinetics Pharmaceuticals experienced a notable decline in total revenue during 2025 Q1, falling by 43.6% to $361,000 from $640,000 in 2024 Q1.

Earnings/Net Income

Crinetics faced deepening losses, reporting a net loss of $96.77 million in 2025 Q1, marking a 44.6% increase from the $66.93 million loss in 2024 Q1. The EPS of $1.04 reflects increased financial challenges.

Price Action

The stock price of Crinetics climbed by 4.84% in the latest trading day, edged down by 2.45% over the recent full trading week, and surged 23.96% month-to-date.

Post-Earnings Price Action Review

Over the last five years, investing in Crinetics shares when revenue matches the previous quarter's figures and holding for 30 days has yielded moderate returns but with considerable volatility and risk. The strategy recorded a compounded annual growth rate (CAGR) of 4.14%, along with a Sharpe ratio of 0.32, indicating a challenging risk-adjusted return profile. Despite this, the strategy's maximum drawdown of -13.61% highlights the high levels of volatility, which may not appeal to risk-averse investors.

CEO Commentary

“Crinetics is stronger than we have ever been,” said Scott Struthers, Ph.D., founder and CEO. The company is progressing with FDA review for paltusotine and advancing multiple late-stage studies. Struthers expressed excitement about the Phase 3 study for adult CAH patients, emphasizing the goal of normalizing androstenedione levels. He highlighted the initiation of the clinical development program for CRN09682 and assured stakeholders of a robust financial foundation and strong momentum across various fronts.

Guidance

Crinetics anticipates an FDA PDUFA target action date of September 25, 2025, for paltusotine's NDA for acromegaly. The company plans to host an R&D Day on June 26, 2025, to discuss its early-stage pipeline, including CRN09682 and other candidates. Furthermore, Crinetics expects to initiate Phase 3 trials of paltusotine in carcinoid syndrome and CALM-CAH studies in adults and pediatrics in the latter half of 2025. The development of the TSH antagonist and SST3 agonist is ongoing, with IND-enabling activities progressing as planned.

Additional News

In recent developments, Crinetics Pharmaceuticals announced the launch of CrinetiCARE™, a patient support services platform, including a disease state education website. Furthermore, the European Medicines Agency validated the Marketing Authorization Application for paltusotine for acromegaly and granted Orphan Drug Designation, underscoring its potential benefit to patients. Additionally, Crinetics reported positive results from the Phase 2 TouCAHn open-label study of atumelnant in congenital adrenal hyperplasia, showing significant reductions in androstenedione levels and substantial clinical improvements. These initiatives demonstrate Crinetics’ commitment to enhancing patient care and expanding its global reach.