Crinetics Pharmaceuticals stock surged after it was acquired by Vertex Pharmaceuticals Incorporated for US$10 billion (A$14.4 billion) in one of the biotechnology sector's largest deals this year.
Crinetics (NASDAQ: CRNX) shares doubled in after-hours trading to a record high of $84.20 after earlier closing down 20 cents (0.47%) at $42.03, capitalising the company at $4.43 billion (A$6.36 billion), before the acquisition was announced.
The Boston-based drugmaker said it would pay $85 a share in cash for Crinetics, valuing the San Diego-based company at approximately $10 billion, or $8.8 billion net of estimated cash acquired.
The transaction, which has been unanimously approved by the boards of both companies, is expected to close in the third quarter of 2026, subject to regulatory approvals and approval by Crinetics shareholders.
With this deal Vertex Pharmaceuticals is expanding beyond its dominant cystic fibrosis franchise into rare endocrine diseases.
"Crinetics is an excellent strategic fit for Vertex, with its focus on serious diseases in specialty markets with significant unmet need, well-understood causal human biology, and potentially best-in-class medicines that could deliver transformative benefit to patients," Vertex Chief Executive Reshma Kewalramani said in a news release.
The acquisition gives Vertex access to Crinetics' newly launched drug PALSONIFY (paltusotine), the first once-daily oral treatment for adults with acromegaly, a rare hormonal disorder caused by excess growth hormone secretion.
The therapy was approved by the United States Food and Drug Administration in September 2025 and has since gained approval in Europe, with the company reporting a strong early commercial uptake driven by growing prescriptions and reimbursement coverage.
“Today marks a historic milestone as we embark on this next chapter with Vertex,” Crinetics Founder and Chief Executive Officer Scott Struthers said in a press release.
Vertex Pharmaceuticals (NASDAQ: VRTX) closed higher $1.55 (0.29%) higher at $529.59 on Monday (Tuesday AEST), capitalising the company at $134.41 billion, before falling $10.35 (1.95%) to $519.24 in after-hours trading.
The shares earlier reached a record high of $529.99 during the session.
