Why This Pharmaceutical Stock Jumped Close to 100% This Week
Key Points
Vertex is acquiring Crinetics Pharmaceuticals at $85 a share.
Crinetics just had its first drug approved by the FDA.
Shares now trade slightly below the buyout price.
- 10 stocks we like better than Crinetics Pharmaceuticals ›
Shares of Crinetics Pharmaceuticals (NASDAQ: CRNX) jumped 98% this week, according to data from S&P Global Market Intelligence. The upstart drugmaker is being acquired by Vertex Pharmaceuticals for $10 billion in cash, less than a year after its first drug was approved by the Food and Drug Administration (FDA).
The stock is now trading just below its acquisition price of $85, and has officially delivered 300% returns for investors over the past five years. Here's why Crinetics stock was soaring this week, and what investors should do now.
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An all-cash deal for promising drugs
Vertex Pharmaceuticals is a large-cap drugmaker paying $10 billion to acquire Crinetics and its portfolio of drugs, or $8.8 billion net of cash on the Crinetics balance sheet. Crinetics has a drug called Palsonify, approved by the FDA in September of 2025 and recently approved in the European Union, that is an oral treatment for a condition called Acromegaly. It also has a pipeline of other drugs in clinical trials.
The acquisition is being made to give Vertex a pipeline of potential drugs to diversify away from its dependence on the cystic fibrosis market, which it dominates. Management wants to add new pillars to its business focused on rare diseases, which Crinetics fits perfectly with. Combined, Vertex thinks the Crinetics assets have the potential to generate $5 billion in annual revenue.
Image source: Getty Images.
Should you buy Crinetics stock?
After the announcement, Crinetics stock now trades at $83.62, a small % below its acquisition price of $85. Investors can keep holding Crinetics stock until they receive cash for their shares, but the implied returns are likely similar to those one holding treasury bonds, meaning there is no reason to keep holding Crinetics shares right now. Take the money and find other opportunities after these massive gains.
Should you buy stock in Crinetics Pharmaceuticals right now?
Before you buy stock in Crinetics Pharmaceuticals, consider this:
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Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vertex Pharmaceuticals. The Motley Fool has a disclosure policy.
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