CRINETICS PHARMACEUTICALS, INC. Item 8.01 Other Events.
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Radionetics' pipeline is based on a broadly enabling platform and intellectual property that will leverage more than a decade of discovery experience within Crinetics. The platform uses nonpeptides as targeting agents designed to deliver therapeutically active radiopharmaceuticals to tumors expressing unique peptide receptors. Radionetics' initial drug development efforts will center on advancing a collection of 10 potent nonpeptide-targeted radiopharmaceutical candidates and leads, discovered at Crinetics, into clinical imaging and efficacy studies. Radionetics will work independently and with Crinetics to identify additional novel radiopharmaceutical targets and drug candidates for a range of cancer indications.
Radiation therapy is a common component of many cancer treatment regimens, but can have serious side effects depending on the size and location of the target tumor. The ability to selectively deliver radioactivity to tumor cells through the use of targeted radiopharmaceuticals is an attractive alternative to traditional radiation therapy. Peptide-targeted radiotherapeutics have recently demonstrated important therapeutic benefit for the treatment of neuroendocrine tumors and advanced prostate cancer and are rapidly being integrated into the standard of care for these patients. Their increasing use is expected to drive infrastructure and deployment of additional radiotherapeutics. Radionetics' platform technology is designed to use nonpeptide, small molecule targeting to deliver therapeutic radioisotopes to a broad range of cancers by binding selectively to peptide receptors that are selectively expressed on these tumors. This nonpeptide technology is designed to address many of the significant challenges currently facing peptide and protein targeted radiotherapeutics, particularly in the realm of optimizing drug-like characteristics and manufacturing.
In conjunction with the formation of the company, Radionetics will receive an
exclusive world-wide license to the radiotherapeutics technology platform and
associated intellectual property from Crinetics for use in developing
radiotherapeutics and related radio-imaging agents, including exclusive rights
to the underlying intellectual property on the preclinical drug candidates and
leads targeting 10 different peptide receptors expressed in solid tumors that
comprise Radionetics' initial pipeline. In exchange, Crinetics received
50,500,000 shares of common stock of Radionetics, which represents a 50.5%
equity stake in Radionetics, and a warrant to purchase additional shares of
common stock designed to maintain a minimum equity interest for Crinetics in
Radionetics of at least an aggregate of 22% of the fully diluted capitalization
of Radionetics in connection with its sale, initial public offering, or SPAC
transaction. In addition, Crinetics may receive potential sales milestones in
excess of
Forward-Looking Statements
Crinetics cautions you that statements contained in this current report regarding matters that are not historical facts are forward-looking statements. These statements are based on the Company's current beliefs and expectations. Such forward-looking statements include, but are not limited to, statements regarding: Radionetics' ability to develop and advance its oncology pipeline; the potential benefits of nonpeptide radiopharmaceutical agents for the treatment of a broad range of oncology indications; the expected increased use and market for radiotherapeutics; the potential for Crinetics and its stockholders to obtain value from Crinetics' equity interest in Radionetics; and Crinetics' potential to receive future milestone and royalty payments from Radionetics. The inclusion of forward-looking statements should not be regarded as a representation by Crinetics that any of its plans will be achieved. Actual results may differ from those set forth in this current report due to the risks and uncertainties inherent in Crinetics' business, including, without limitation: Radionetics will need additional funds to advance its pipeline and Crinetics' ownership interest may be diminished in connection with future capital raising; Crinetics' ability to receive milestone or royalty payments from Radionetics will depend on Radionetics ability to advance the pipeline through clinical development, regulatory approval and ultimately commercial sales, all of which will take significant time, will be subject to inherent risks in drug development and may be impacted by changes in regulatory requirements, healthcare reform measures and competitive dynamics; the technology platform is novel and unproven and may never
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lead to approved products of commercial value; clinical trials and preclinical
studies may not proceed at the time or in the manner expected, or at all; the
timing and outcome of research, development and regulatory review is uncertain,
and Crinetics' or Radionetics' drug candidates may not advance in development or
be approved for marketing; Crinetics and Radionetics may use their capital
resources sooner than expected; and other risks described under the heading
"Risk Factors" in documents the Company files from time to time with the
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