Recent News
On July 6, 2026 Vertex announced a definitive agreement to acquire Crinetics for $85.00 per share, with the transaction expected to close in the third quarter of 2026; the companies scheduled investor calls and related filings following the announcement. Recent company releases in June highlighted presentations at ENDO 2026 and longer-term paltusotine data, while late May–June communications covered investor conferences and patient advocacy initiatives.
Technical Analysis
ADX at 74.23 indicates a very strong directional environment supporting the acquisition-driven narrative, though ADX measures strength rather than direction; the high reading implies any subsequent directional move may carry momentum until trend strength eases.
Directional indicators show DI+ at 67.70 and DI- at 5.67 while DI+ decreases and DI- increases. That pattern represents a weakening of the prior bullish directional advantage and signals that upward momentum has begun to erode relative to the strong trend strength.
MACD stands at 7.37 and trends lower while the signal line sits at 8.82; MACD below the signal line and declining points to cooling bullish momentum despite positive absolute MACD, tilting the near-term outlook toward consolidation or a pullback relative to current price levels.
MRO registers 41.19 and is decreasing. A positive MRO of this magnitude implies price sits above the internal target and carries material downside potential as momentum normalizes; the declining MRO suggests that this potential is beginning to manifest.
RSI at 83.1 with a peak-and-reversal read indicates overbought conditions and a short-term exhaustion of buying pressure. Price trading at the upper Bollinger band region and near the 20-day average of $83.80 while remaining well above the 50-day ($57.83) and 200-day ($46.84) averages supports a narrative of rapid appreciation followed by increased likelihood of consolidation.
Short-term EMAs show the 12-day EMA rising and price exceeding shorter-term averages, consistent with recent strength, but the convergence of weakening MACD, falling DI+, and peak RSI increases the chance of a corrective move before any resumption of an upward path tied to deal developments.
Fundamental Analysis
Revenue shows strong YoY growth of 74.23% but a steep QoQ contraction of -98.24%, reflecting timing differences around product launch and reporting cadence rather than stable run-rate expansion. Total revenue equals $10,734,000 with gross profit of $10,534,000 and gross margin of 98.14%.
Operating loss remains material: EBIT of -$140,378,000 and net loss of -$127,845,000 produce an operating margin of -13.08%, below the industry peer mean operating margin of -0.86% but well above the industry peer low of -72.60%. R&D equals $100,081,000, consistent with a clinical-stage commercialization and pipeline investment profile.
Balance-sheet liquidity stands out: cash and short-term investments total $1,291,306,000 and cash alone sits at $114,341,000, producing a current ratio of 18.60 and a quick ratio of 18.56. High cash coverage and low total debt ($47,855,000) yield a debt-to-assets ratio of 3.42% and a cash ratio of 18.17, supporting funding for ongoing development and integration activities tied to the announced transaction.
Market multiples present a mixed picture: price-to-book at 3.32 sits below the industry peer mean of 7.51; price-to-sales at 395.79 sits above the industry peer mean of 57.10; PEG and forward multiples diverge due to negative forward earnings, while EPS actual was -$1.14 versus an estimate of -$1.18 (an EPS surprise ratio of 3.39%).
Operational efficiency remains low: asset turnover at 0.85% and inventory turnover near 0.08 point to limited revenue per asset today, appropriate for a research- and launch-stage biotech. Free cash flow stands negative at -$125,523,000 but free cash conversion approximates net losses (free cash to net income ~98%), indicating cash outflows align with operating losses rather than unusual non-cash distortions.
The current valuation as determined by WMDST values the stock as under-valued, a conclusion driven by substantial cash resources, high revenue growth YoY, and pipeline-readiness balanced against ongoing operating losses and elevated market multiple dispersion.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-03-31 |
| REPORT DATE: | 2026-08-03 |
| NEXT REPORT DATE: | 2026-11-02 |
| CASH FLOW | Begin Period Cash Flow | $ 102.3 M |
| Operating Cash Flow | $ -124.70 M | |
| Capital Expenditures | $ -820.00 K | |
| Change In Working Capital | $ -26.20 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 12.8 M | |
| End Period Cash Flow | $ 115.1 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 10.7 M | |
| Forward Revenue | $ 2.2 M | |
| COSTS | ||
| Cost Of Revenue | $ 200.0 K | |
| Depreciation | $ 1.2 M | |
| Depreciation and Amortization | $ 1.2 M | |
| Research and Development | $ 100.1 M | |
| Total Operating Expenses | $ 151.1 M | |
| PROFITABILITY | ||
| Gross Profit | $ 10.5 M | |
| EBITDA | $ -139.22 M | |
| EBIT | $ -140.38 M | |
| Operating Income | $ -140.38 M | |
| Interest Income | $ 12.7 M | |
| Interest Expense | — | |
| Net Interest Income | $ 12.7 M | |
| Income Before Tax | $ -127.84 M | |
| Tax Provision | — | |
| Tax Rate | — | |
| Net Income | $ -127.84 M | |
| Net Income From Continuing Operations | $ -127.84 M | |
| EARNINGS | ||
| EPS Estimate | $ -1.18 | |
| EPS Actual | $ -1.14 | |
| EPS Difference | $ 0.04 | |
| EPS Surprise | 3.39 % | |
| Forward EPS | $ -1.02 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 1.4 B | |
| Intangible Assets | — | |
| Net Tangible Assets | $ 1.3 B | |
| Total Current Assets | $ 1.3 B | |
| Cash and Short-Term Investments | $ 1.3 B | |
| Cash | $ 114.3 M | |
| Net Receivables | $ 5.7 M | |
| Inventory | $ 3.1 M | |
| Long-Term Investments | $ 25.6 M | |
| LIABILITIES | ||
| Accounts Payable | $ 12.9 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 71.1 M | |
| Net Debt | — | |
| Total Debt | $ 47.9 M | |
| Total Liabilities | $ 120.7 M | |
| EQUITY | ||
| Total Equity | $ 1.3 B | |
| Retained Earnings | $ -1.55 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 12.16 | |
| Shares Outstanding | 105.314 M | |
| Revenue Per-Share | $ 0.10 | |
| VALUATION | Market Capitalization | $ 4.2 B |
| Enterprise Value | $ 3.0 B | |
| Enterprise Multiple | -21.585 | |
| Enterprise Multiple QoQ | -18.345 % | |
| Enterprise Multiple YoY | 19.548 % | |
| Enterprise Multiple IPRWA | high: 75.51 median: 50.282 mean: 15.326 CRNX: -21.585 low: -128.217 |
|
| EV/R | 279.95 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.094 | |
| Asset To Liability | 11.612 | |
| Debt To Capital | 0.036 | |
| Debt To Assets | 0.034 | |
| Debt To Assets QoQ | -20.766 % | |
| Debt To Assets YoY | -8.519 % | |
| Debt To Assets IPRWA | high: 1.112 mean: 0.188 median: 0.066 CRNX: 0.034 low: 0.0 |
|
| Debt To Equity | 0.037 | |
| Debt To Equity QoQ | -23.626 % | |
| Debt To Equity YoY | -7.797 % | |
| Debt To Equity IPRWA | high: 1.864 mean: 0.269 median: 0.051 CRNX: 0.037 low: -1.172 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 3.317 | |
| Price To Book QoQ | -26.642 % | |
| Price To Book YoY | 29.272 % | |
| Price To Book IPRWA | high: 20.844 mean: 7.507 median: 5.877 CRNX: 3.317 low: -11.267 |
|
| Price To Earnings (P/E) | -32.797 | |
| Price To Earnings QoQ | -9.869 % | |
| Price To Earnings YoY | -0.76 % | |
| Price To Earnings IPRWA | high: 74.242 median: 50.465 mean: 11.864 CRNX: -32.797 low: -121.28 |
|
| PE/G Ratio | 7.052 | |
| Price To Sales (P/S) | 395.793 | |
| Price To Sales QoQ | -45.647 % | |
| Price To Sales YoY | -95.56 % | |
| Price To Sales IPRWA | high: 864.732 CRNX: 395.793 mean: 57.103 median: 24.412 low: 0.192 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | -39.71 | |
| Forward PE/G | 8.538 | |
| Forward P/S | 1826.445 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 0.068 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.008 | |
| Asset Turnover Ratio QoQ | 59.887 % | |
| Asset Turnover Ratio YoY | 3165.385 % | |
| Asset Turnover Ratio IPRWA | high: 0.403 mean: 0.106 median: 0.095 CRNX: 0.008 low: 0.0 |
|
| Receivables Turnover | 3.421 | |
| Receivables Turnover Ratio QoQ | — | |
| Receivables Turnover Ratio YoY | — | |
| Receivables Turnover Ratio IPRWA | high: 5.731 CRNX: 3.421 median: 1.405 mean: 1.287 low: 0.013 |
|
| Inventory Turnover | 0.079 | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | high: 2.566 mean: 0.552 median: 0.442 CRNX: 0.079 low: 0.003 |
|
| Days Sales Outstanding (DSO) | 26.672 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 26.672 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 1575.417 mean: 212.807 median: 208.031 CRNX: 26.672 low: -1586.264 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.009 | |
| CapEx To Revenue | -0.076 | |
| CapEx To Depreciation | -0.707 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.3 B | |
| Net Invested Capital | $ 1.3 B | |
| Invested Capital | $ 1.3 B | |
| Net Tangible Assets | $ 1.3 B | |
| Net Working Capital | $ 1.3 B | |
| LIQUIDITY | ||
| Cash Ratio | 18.165 | |
| Current Ratio | 18.603 | |
| Current Ratio QoQ | 50.962 % | |
| Current Ratio YoY | -17.42 % | |
| Current Ratio IPRWA | high: 32.587 CRNX: 18.603 mean: 3.75 median: 1.967 low: 0.016 |
|
| Quick Ratio | 18.56 | |
| Quick Ratio QoQ | 50.903 % | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | CRNX: 18.56 high: 9.985 mean: 2.599 median: 2.359 low: 0.054 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | -0.344 | |
| Cost Of Debt | 4.114 % | |
| Interest Coverage Ratio | -70.791 | |
| Interest Coverage Ratio QoQ | 5.021 % | |
| Interest Coverage Ratio YoY | 26.007 % | |
| Interest Coverage Ratio IPRWA | high: 604.866 median: -7.668 mean: -69.425 CRNX: -70.791 low: -1643.72 |
|
| Operating Cash Flow Ratio | -2.005 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | — | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 24.423 % | |
| Revenue Growth | 74.225 % | |
| Revenue Growth QoQ | -98.236 % | |
| Revenue Growth YoY | — | |
| Revenue Growth IPRWA | high: 242.212 % CRNX: 74.225 % mean: -10.768 % median: -12.166 % low: -242.388 % |
|
| Earnings Growth | -4.651 % | |
| Earnings Growth QoQ | -28.688 % | |
| Earnings Growth YoY | -125.58 % | |
| Earnings Growth IPRWA | high: 215.789 % median: -3.279 % CRNX: -4.651 % mean: -10.425 % low: -250.0 % |
|
| MARGINS | ||
| Gross Margin | 98.137 % | |
| Gross Margin QoQ | — | |
| Gross Margin YoY | -1.863 % | |
| Gross Margin IPRWA | high: 100.0 % CRNX: 98.137 % median: 81.433 % mean: 77.639 % low: -98.223 % |
|
| EBIT Margin | -1307.788 % | |
| EBIT Margin QoQ | -39.721 % | |
| EBIT Margin YoY | -95.762 % | |
| EBIT Margin IPRWA | high: 2524.194 % median: 31.806 % mean: -86.015 % CRNX: -1307.788 % low: -7259.515 % |
|
| Return On Sales (ROS) | -1307.788 % | |
| Return On Sales QoQ | -39.721 % | |
| Return On Sales YoY | -95.762 % | |
| Return On Sales IPRWA | high: 100.302 % median: 30.354 % mean: -86.297 % CRNX: -1307.788 % low: -7394.476 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -125.52 M | |
| Free Cash Flow Yield | -2.955 % | |
| Free Cash Flow Yield QoQ | 41.999 % | |
| Free Cash Flow Yield YoY | 6.028 % | |
| Free Cash Flow Yield IPRWA | high: 11.709 % median: 0.78 % mean: -0.273 % CRNX: -2.955 % low: -48.369 % |
|
| Free Cash Growth | 34.452 % | |
| Free Cash Growth QoQ | -310.961 % | |
| Free Cash Growth YoY | -5.637 % | |
| Free Cash Growth IPRWA | high: 253.163 % CRNX: 34.452 % mean: 1.741 % median: -19.248 % low: -249.577 % |
|
| Free Cash To Net Income | 0.982 | |
| Cash Flow Margin | -1328.023 % | |
| Cash Flow To Earnings | 1.115 | |
| VALUE & RETURNS | ||
| Economic Value Added | — | |
| Return On Assets (ROA) | -10.116 % | |
| Return On Assets QoQ | -4.359 % | |
| Return On Assets YoY | 46.122 % | |
| Return On Assets IPRWA | high: 38.074 % median: -6.451 % CRNX: -10.116 % mean: -12.313 % low: -67.817 % |
|
| Return On Capital Employed (ROCE) | -10.553 % | |
| Return On Equity (ROE) | -0.1 | |
| Return On Equity QoQ | -19.362 % | |
| Return On Equity YoY | 29.364 % | |
| Return On Equity IPRWA | high: 0.797 median: -0.073 CRNX: -0.1 mean: -0.308 low: -1.265 |
|
| DuPont ROE | -11.246 % | |
| Return On Invested Capital (ROIC) | — | |
| Return On Invested Capital QoQ | — | |
| Return On Invested Capital YoY | — | |
| Return On Invested Capital IPRWA | — | |