Vertex to Buy Crinetics for $10B; Crinetics Stock Doubles

Vertex Pharmaceuticals agreed to acquire Crinetics Pharmaceuticals in an all-cash transaction that values the endocrinology-focused biotech at $85 per share, about $10 billion in total. The companies said the deal is expected to close during the current quarter, subject to regulatory and customary closing conditions.

Crinetics stock rose nearly 100% in pre-market trading to roughly $83.69. The company had closed just above $42 per share before the announcement. Vertex shares moved down slightly following the news.

Vertex expects the acquired portfolio to contribute an estimated $5 billion in peak annual sales. The assets include Palsonify, a once-daily oral therapy approved by the U.S. Food and Drug Administration in September to treat acromegaly, and Atumelnant, an investigational once-daily oral medicine being developed for congenital adrenal hyperplasia (CAH).

Palsonify lowers insulin-like growth factor to help relieve symptoms of acromegaly, a rare hormonal disorder usually caused by a benign pituitary tumor that leads to excess growth hormone and symptoms such as enlarged facial features, hands and feet, joint pain and headaches. Atumelnant is being developed as an alternative approach for CAH, a group of inherited disorders that cause the adrenal glands to produce excess androgens; current treatments often use high-dose glucocorticoids that can cause multiple side effects. Crinetics has also reported Atumelnant has shown potential activity in Cushing’s syndrome, a disorder of excessive cortisol.

Vertex reported about $12 billion in revenue last year. The company said it will integrate Crinetics’ assets into its specialty medicines portfolio and work to expand the commercial reach of Palsonify.

Vertex Chief Executive Reshma Kewalramani described the acquisition as aligned with the company’s long-term growth plans, noting the targets treat serious diseases in specialty markets with well-understood biology and measurable biomarkers. She added that Vertex plans to apply its experience in rare genetic diseases to grow Palsonify’s commercial potential.

Citi analyst Geoff Meacham noted the deal fits Vertex’s focus on specialty and biologically targeted medicines and said the $5 billion peak sales estimate provides a path to sustain double-digit revenue growth. Meacham maintained a Buy rating on Vertex and set a $585 price target.

Both companies said they will complete standard closing steps and provide updates as required. The transaction follows a broader pattern of large drugmakers acquiring smaller biotech firms to add marketed drugs and clinical-stage assets to their pipelines.