On July 7, Crinetics Pharmaceuticals surged 98.85% in regular trading, trading at $83.51/share, with turnover of $2.857 billion. The sharp rally was driven by the announcement that Vertex Pharmaceuticals will acquire Crinetics for $85.00 per share in all-cash transaction.

The deal values Crinetics at a total equity value of approximately $10 billion, representing a nearly 100% premium to its pre-announcement price. Vertex expects to fund the acquisition using a combination of cash and debt, supported by a $4.5 billion fully committed bridge loan from Bank of America and Morgan Stanley Senior Funding. The transaction, unanimously approved by both boards, is expected to close in Q3 and remains subject to regulatory and shareholder approvals.

Crinetics brings commercialized and Phase 3 endocrinology assets with approximately $5 billion in peak sales opportunity to Vertex's portfolio, with the deal expected to be accretive to Vertex's non-GAAP operating income by 2029. Following the announcement, Piper Sandler and Cantor Fitzgerald both downgraded Crinetics to Neutral, adjusting target prices to $85, consistent with the offer price. SEC filings also revealed a $350.47 million termination fee payable by Crinetics under certain conditions if the deal is terminated.

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