Benzinga | Oct 19, 2021 08:20AM EDT

Crinetics Spins Off Radiopharmaceuticals Efforts Into New Company

* Crinetics Pharmaceuticals Inc (NASDAQ:CRNX) spun out a new company, Radionetics, focused solely on a burgeoning field of radiopharmaceuticals.

* Radiopharmaceuticals are a class of drugs that contain radioactive isotopes. Those radioisotopes are carried by the treatments to receptors on the tumor, hoping to kill cancer.

* Radionetics' platform consists of nonpeptide small molecules that bind to peptide receptors selectively expressed on various tumors.

* The company announced seeding the new entity with $30 million raised from 5AM Ventures and Frazier Healthcare Partners.

* Radionetics will start with its radiopharma-centric platform and a pipeline of 10 programs aimed at solid tumors.

* In conjunction with the company's formation, Radionetics will receive an exclusive worldwide license to the radiotherapeutics technology platform from Crinetics for equity milestones over $1 billion and single-digit royalties on net sales.

* Price Action: CRNX shares closed 0.72% lower at $19.35 on Monday.