Crinetics Pharmaceuticals Reports 44% Revenue Decline and Increased Losses in Q1 2025

Crinetics Pharmaceuticals, Inc. reported its financial results for the first quarter of 2025, revealing a significant decline in revenue and an increase in operating expenses compared to the same period in 2024. The company generated revenues of $361,000, a decrease of 44% from $640,000 in the prior year. This decline is attributed primarily to lower revenue recognized from its licensing agreements, particularly the Sanwa License. Operating expenses surged to $111.8 million, up from $74.2 million, driven by increased research and development costs, which rose to $76.2 million from $53.3 million, reflecting the company's ongoing clinical programs and expansion of its preclinical portfolio.

The net loss for the quarter was $96.8 million, compared to a loss of $66.9 million in the same quarter of 2024, marking a 45% increase in losses. The increase in net loss was influenced by higher personnel costs and increased spending on clinical trials and manufacturing activities. The company reported a net loss per share of $1.04, compared to $0.93 in the previous year. The weighted average shares outstanding increased to 93.1 million from 72.3 million, reflecting the issuance of new shares in previous financing rounds.

Crinetics has made strategic advancements in its product pipeline, particularly with its lead candidate, paltusotine, which is in clinical development for acromegaly and carcinoid syndrome. The company has submitted a New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA) for paltusotine, which has been accepted with a target action date set for September 25, 2025. Additionally, the European Medicines Agency (EMA) has granted orphan drug designation for paltusotine, validating its potential impact on patients in the European Union.

Operationally, Crinetics has expanded its workforce to support its growing clinical and preclinical programs, resulting in an increase in employee headcount. As of March 31, 2025, the company had unrestricted cash, cash equivalents, and investment securities totaling $1.3 billion, which it believes will be sufficient to meet its funding requirements for at least the next 12 months. However, the company anticipates continued net losses and recognizes the need for additional capital to support its ongoing operations and product development efforts.

Looking ahead, Crinetics plans to continue its focus on advancing its clinical programs, particularly for paltusotine and atumelnant, while also exploring potential collaborations and licensing agreements to enhance its financial position. The company remains committed to its goal of developing innovative therapeutics for rare endocrine diseases and endocrine-related tumors, despite the challenges posed by the current financial landscape.