Vertex Gets a Deal on Crinetics, Betting on a Drug That Could Be Worth More

Vertex is paying $8.8 billion for a smaller drug company, Crinetics. It's paying less than typical for such deals—roughly 1.76 times the peak sales of Crinetics' drugs. That suggests Vertex thinks the market is underestimating the value of Crinetics' acromegaly treatment, Palsonify, which could sell for $5 billion or more annually at its peak.