Biotech Fund Dumps $12.3 Million in Crinetics Stock as Shares Remain 19% Lower on the Year

CRNX -1.02% MDGL -0.67%

Key Points

• Boston-based MPM BioImpact sold 428,975 shares of Crinetics Pharmaceuticals worth about $12.3 million in the third quarter.

• The move marked a full exit for MPM, which reported holding no shares of CRNX at quarter-end.

• The position previously accounted for 2.1% of fund assets as of the second quarter.

• These 10 stocks could mint the next wave of millionaires ›

MPM BioImpact fully exited its position in Crinetics Pharmaceuticals during the third quarter, a move disclosed in the fund’s November 14 SEC filing. The transaction reduced assets by approximately $12.3 million.

What Happened

According to a filing with the Securities and Exchange Commission dated November 14, MPM BioImpact sold its entire holding of 428,975 shares in Crinetics Pharmaceuticals (NASDAQ:CRNX) in the third quarter. The estimated transaction value was $12.3 million based on quarterly average prices. The position represented 2.1% of assets under management in the previous quarter.

What Else to Know

Top holdings after the filing:

• NASDAQ:MDGL: $46.1 million (7.5% of AUM)

• NASDAQ:CGEM: $45.4 million (7.4% of AUM)

• NASDAQ:RNA: $33.1 million (5.4% of AUM)

• NASDAQ:TRVI: $31.2 million (5.1% of AUM)

• NASDAQ:EWTX: $27.9 million (4.6% of AUM)

As of Wednesday's market close, shares of Crinetics Pharmaceuticals were priced at $46.03, down 19% over the past year and well underperforming the S&P 500, which is up 13% in the same period.

Company Overview

Metric

Value

Market capitalization

$4.4 billion

Revenue (TTM)

$1.5 million

Net income (TTM)

($423.1 million)

Price (as of market close Wednesday)

$46.03

Company Snapshot

Crinetics Pharmaceuticals, Inc. is a clinical-stage biotechnology company specializing in the development of novel oral therapies for rare endocrine diseases and endocrine-related tumors, with lead candidate Paltusotine targeting acromegaly and neuroendocrine tumors. With a focus on innovation and targeted patient populations, Crinetics seeks to establish a competitive advantage in the rare disease pharmaceutical market.

Foolish Take

Investors evaluating high-volatility, clinical-to-commercial transition stories should pay close attention when a specialist fund fully exits a name—particularly one undergoing a fundamental shift in profile. Crinetics has moved beyond its pure clinical-stage identity this year, with Palsonify receiving FDA approval on September 25 and its U.S. launch beginning immediately thereafter. The stock has been volatile throughout that transition, and although shares are well off their late-2024 peaks, the name remains highly sensitive to clinical and commercial execution. A complete exit at this moment signals a meaningful shift in the manager’s risk tolerance or better opportunities elsewhere.According to the latest SEC filing, the fund sold all 428,975 shares of Crinetics Pharmaceuticals in the third quarter—an estimated $12.3 million reduction that previously represented 2.1% of AUM. The firm also exited positions in MBX Biosciences and MoonLake Immunotherapeutics during the period.Crinetics reported $143,000 in revenue for the third quarter from a paltusotine licensing agreement, while operating expenses climbed sharply with the commercial rollout of Palsonify—bringing the net loss to $130.1 million, per the company’s earnings release. Cash, cash equivalents, and investments totaled $1.1 billion as of September 30, supporting runway into 2029. CEO Scott Struthers underscored the significance of the approval and launch momentum, saying, “September 25, 2025 was a historic day for Crinetics… and we are seeing uptake in patients switching from prior therapies and in those newly initiating medical therapy.”For long-term investors, the takeaway is clear: This is now a commercial-stage rare-disease company with expanding late-stage programs, a large cash reserve, and rising spend. Execution—not short-term stock swings—will determine durability from here.

Glossary

13F: A quarterly report filed by institutional investment managers disclosing their equity holdings to the SEC.Assets under management (AUM): The total market value of investments managed by a fund or investment firm.Clinical-stage biotechnology company: A biotech firm focused on developing drugs that are still undergoing clinical trials and not yet approved for sale.Endocrine diseases: Disorders affecting glands that produce hormones, such as the thyroid, pituitary, or adrenal glands.Neuroendocrine tumors: Rare tumors that arise from cells that release hormones into the blood in response to signals from the nervous system.Proprietary drug candidates: Experimental medicines developed and owned exclusively by a specific company.Rare disease pharmaceutical market: The segment of the drug industry focused on treatments for uncommon medical conditions affecting small patient populations.Stake: The amount of ownership or investment a fund or individual holds in a particular company.TTM: The 12-month period ending with the most recent quarterly report.

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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool recommends Cullinan Therapeutics. The Motley Fool has a disclosure policy.

Biotech Fund Dumps $12.3 Million in Crinetics Stock as Shares Remain 19% Lower on the Year was originally published by The Motley Fool