Vertex will pay $85 a share in cash for Crinetics, betting on a newly approved acromegaly pill and a broader rare endocrine pipeline that analysts say could support the deal price.
Crinetics Pharmaceuticals shares nearly doubled on Monday, July 6 after Vertex Pharmaceuticals agreed to acquire the company in a $10 billion all-cash deal. Vertex will pay $85 a share, roughly double Crinetics' prior closing price, sending the stock close to the offer level as investors priced in the takeover premium and the remaining risk that the transaction may not close before the third quarter. The acquisition centers on Crinetics' newly approved once-daily acromegaly pill, Palsonify, which offers a more convenient alternative to regular injections, and a second late-stage drug for another rare hormone disorder. Together, the two products could generate more than $5 billion in annual peak sales. William Blair analyst Myles Minter said the valuation appears reasonable if that sales outlook is achieved, even as Vertex shares fell 1.8% after hours and investors debated the price.