Morgan Stanley initiates Crinetics with 'outperform' on catalyst rich 2025

Brokerage Morgan Stanley starts coverage on drug developer Crinetics CRNX.O, which focuses on developing treatments for hormonal disorders, with "outperform" rating and a $70 PT

PT represents a 2x upside to the stock's last close

Brokerage sees several catalysts for CRNX this year, including a potential FDA approval of its lead drug, paltusotine, to treat a growth-hormone related condition called acromegaly

Investors are also closely watching late-stage data from the drug to treat carcinoid syndrome, which causes symptoms from rare tumors, due this year

"We think the late-stage results could give paltusotine significant market share in acromegaly and boost its prospects for carcinoid syndrome" — brokerage

CRNX's other drug, atumelnant, is being developed to treat a rare genetic disorder and other conditions

Brokerage says atulmelnant's "unique mechanism of action" increases its confidence in potential success of the late-stage trial, other treatments for the condition includes Crenessity by Neurocrine Biosciences NBIX.O

Brokerage added: company is looking to disclose their obesity drug candidates in both peptide and non-peptide forms this year, alongside seeking trial approvals for four other drugs

Stock has fallen 21.6% in the past 12 months