Vertex to Acquire Crinetics Pharmaceuticals (CRNX) in $85 Per Share Cash Deal

Crinetics Pharmaceuticals Inc. (NASDAQ:CRNX) is one of the 10 affordable biotech stocks to buy right now.

On July 6, Crinetics Pharmaceuticals Inc. (NASDAQ:CRNX) and Vertex Pharmaceuticals announced that both companies have agreed to a definitive agreement, according to which Vertex will acquire Crinetics Pharmaceuticals. The deal is priced at $85 a share in cash consideration, effectively valuing the acquisition at around $10 billion or $8.8 billion after accounting for the cash.

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The Boards of both companies approved the transaction unanimously, with completion projected for the third quarter of this year. Vertex plans to finance the acquisition through cash on hand and $4.5 billion in bridge financing from Bank of America and Morgan Stanley.

Following the announcement, Crinetics Pharmaceuticals Inc. (NASDAQ:CRNX) garnered a lot of attention from analysts, who shared mixed opinions and revised their models based on this acquisition. On July 7, Baird increased its target price on the stock from $62 to $85, leading to an adjusted upside of more than 102%. The firm reiterated an Outperform rating on the stock.

On July 8, Evercore ISI downgraded the stock from an Outperform rating to In Line. The price target was also lowered from $88 to $85, which still leaves attractive upside potential.

Crinetics Pharmaceuticals Inc. (NASDAQ:CRNX) is engaged in the development and marketing of innovative treatments for rare endocrine diseases and endocrine-related tumors. The company offers a range of therapies that are currently in different stages of clinical trials. These include Paltusotine, Atumelnant, CRN09682, oral GLP-1 and GIP nonpeptide.

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