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Crinetics Pharmaceuticals Reports Third Quarter 2019 Financial Results and Provides Corporate Update

November 12, 2019 at 4:04 PM EST

SAN DIEGO, Nov. 12, 2019 (GLOBE NEWSWIRE) -- Crinetics Pharmaceuticals, Inc. (Nasdaq: CRNX), a clinical stage pharmaceutical company focused on the discovery, development and commercialization of novel therapeutics for rare endocrine diseases and endocrine-related tumors, today reported financial results for the third quarter ended September 30, 2019 and provided an update on its corporate activities and product pipeline.

“Crinetics has continued to make significant strides in the development of new therapeutics to treat patients suffering from rare endocrine diseases and endocrine-related tumors,” said Scott Struthers, Ph.D., Founder and Chief Executive Officer of Crinetics. “Our ACROBAT clinical studies for patients with acromegaly are advancing as is our Phase 1 study for CRN01941 aimed at neuroendocrine tumors. Furthermore, we are excited with the progress we have made to develop novel therapies for patients suffering from Cushing’s disease and hyperinsulinism as we continue to steer these programs towards clinical development.”

Third Quarter and Subsequent Highlights

  • Received final award of SBIR grant from NIH for congenital hyperinsulinism. In July 2019, Crinetics announced that it would receive up to approximately $0.9 million in continued funding under its Small Business Innovation Research (SBIR) grant from the National Institute of Diabetes and Digestive and Kidney diseases (NIDDK) of the National Institutes of Health (NIH). The funds are being used to support the ongoing research and development of Crinetics’ nonpeptide somatostatin agonists for congenital hyperinsulinemias (CHI).
     
  • Expanded board of directors. In July 2019, Crinetics appointed Stephanie S. Okey, M.S. to its board of directors as an independent board member. Ms. Okey brings extensive leadership and management experience having spent her career in senior commercial roles including, most recently, Head of North America and U.S. General Manager of Rare Diseases at Genzyme.

Third Quarter 2019 Financial Results

  • Research and development expenses were $11.8 million and $29.4 million for the three and nine months ended September 30, 2019, respectively, compared to $6.9 million and $16.8 million for the same periods in 2018. The increases were primarily attributable to development and manufacturing activities for CRN00808 and CRN01941 as well as the company’s preclinical programs and higher personnel costs.
     
  • General and administrative expenses were $3.9 million and $10.1 million for the three and nine months ended September 30, 2019, compared to $1.7 million and $4.1 million for the same periods in 2018. The increases were primarily due to costs to operate as a public company, as well as personnel costs to support the company’s growth.
     
  • Net loss for the three months ended September 30, 2019 was $14.4 million, compared to a net loss of $7.6 million for the same period in 2018. For the nine months ended September 30, 2019, the company’s net loss was $35.9 million compared to a net loss of $18.6 million for the nine months ended September 30, 2018.
  • Unrestricted cash, cash equivalents and investments totaled $131.7 million as of September 30, 2019, compared to $145.0 million as of June 30, 2019 and $163.9 million as of December 31, 2018. Crinetics expects that its cash, cash equivalents and investments will fund its current operating plan at least through the first half of 2021.
     
  • As of October 31, 2019, the company had 24,222,296 common shares outstanding.

About Crinetics Pharmaceuticals

Crinetics Pharmaceuticals is a clinical stage pharmaceutical company focused on the discovery, development, and commercialization of novel therapeutics for rare endocrine diseases and endocrine-related tumors. The company’s lead product candidate, CRN00808, is an oral selective nonpeptide somatostatin receptor type 2 biased agonist undergoing two Phase 2 clinical trials for the treatment of acromegaly, an orphan disease affecting more than 25,000 people in the United States. Crinetics’ second oral product development candidate, CRN01941, has entered the clinic for the treatment of neuroendocrine tumors. The company is also developing oral nonpeptide somatostatin agonists for hyperinsulinism, as well as oral nonpeptide ACTH antagonists for the treatment of Cushing's disease. All of the company’s drug candidates are new chemical entities resulting from in-house drug discovery efforts. For more information, please visit www.crinetics.com.

Forward-Looking Statements

Crinetics cautions you that statements contained in this press release regarding matters that are not historical facts are forward-looking statements. These statements are based on the company’s current beliefs and expectations. Such forward-looking statements include, but are not limited to, statements regarding the anticipated timing of clinical trials for CRN00808 and CRN01941 and plans to advance other pipeline programs. The inclusion of forward-looking statements should not be regarded as a representation by Crinetics that any of its plans will be achieved. Actual results may differ from those set forth in this press release due to the risks and uncertainties inherent in Crinetics’ business, including, without limitation: potential delays in the commencement, enrollment and completion of clinical trials; the company’s dependence on third parties in connection with product manufacturing, research and preclinical and clinical testing; the success of Crinetics’ clinical trials and nonclinical studies for CRN00808, CRN01941 and its other product candidates; regulatory developments in the United States and foreign countries; unexpected adverse side effects or inadequate efficacy of the company’s product candidates that may limit their development, regulatory approval and/or commercialization, or may result in recalls or product liability claims; Crinetics’ ability to obtain and maintain intellectual property protection for its product candidates; and other risks described under the heading “Risk Factors” in documents the company files from time to time with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and Crinetics undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Contacts:
Marc Wilson
Chief Financial Officer
IR@crinetics.com
(858) 450-6464

Robert H. Uhl
Westwicke ICR
robert.uhl@westwicke.com
(858) 356-5932

 
CRINETICS PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED FINANCIAL STATEMENT DATA
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNT)
 
  Three months ended September 30,     Nine months ended September 30,  
STATEMENTS OF OPERATIONS DATA: 2019     2018     2019     2018  
                               
Grant revenues $ 505     $ 548     $ 872     $ 1,647  
Operating expenses:                              
Research and development   11,823       6,886       29,363       16,828  
General and administrative   3,911       1,732       10,127       4,098  
Total operating expenses   15,734       8,618       39,490       20,926  
Loss from operations   (15,229 )     (8,070 )     (38,618 )     (19,279 )
Total other income (expense), net   799       482       2,745       659  
                               
Net loss $ (14,430 )   $ (7,588 )   $ (35,873 )   $ (18,620 )
                               
Net loss per share - basic and diluted $ (0.60 )   $ (0.38 )   $ (1.49 )   $ (2.29 )
Weighted-average shares - basic and diluted   24,208       20,016       24,155       8,131  
                               


BALANCE SHEET DATA: September 30,
2019
    December 31,
2018
 
               
Cash, cash equivalents and investments $ 131,673     $ 163,875  
Working capital $ 127,522     $ 158,758  
Total assets $ 142,509     $ 171,415  
Total liabilities $ 12,986     $ 11,190  
Accumulated deficit $ (79,253 )   $ (43,380 )
Total stockholders’ equity $ 129,523     $ 160,225  
               

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Source: Crinetics Pharmaceuticals, Inc.