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On Wednesday, Guggenheim analysts reaffirmed their Buy rating on Neurocrine Bio. (NASDAQ: NASDAQ:NBIX) stock, maintaining a price target of $165.00. This decision follows a detailed discussion with the company’s management, including the CEO, CFO, COO, and Investor Relations team, during an investor lunch. According to InvestingPro data, eight analysts have recently revised their earnings estimates upward, with price targets ranging from $115 to $192. The company’s current market capitalization stands at $12.4 billion, and InvestingPro’s Fair Value analysis suggests the stock is currently undervalued.
The meeting highlighted several key areas of interest for investors, particularly the performance of Ingrezza, potential impacts from TEVA’s Austedo price negotiations under the Inflation Reduction Act (IRA), and the launch trends of Crenessity. Management anticipates a sales increase from the first to the second quarter of 2025 and a reacceleration in the latter half of the year. This optimism is supported by the company’s strong financial performance, with revenue growing 21.7% year-over-year and maintaining healthy profit margins of 63.9%. InvestingPro analysis reveals the company’s overall financial health score is rated as GREAT, with particularly strong metrics in profitability and cash flow management.
Concerns were noted regarding the IRA’s influence on Austedo’s pricing. However, Neurocrine Bio. management aims to achieve parity access with TEVA. They also pointed out a significant number of untreated patients, suggesting room for long-term growth in the VMAT2 inhibitor market. The company’s strong financial position, with a current ratio of 3.13 and moderate debt levels, provides flexibility to navigate market challenges and pursue growth opportunities.
The company reported positive trends in Crenessity’s launch, with 413 patient enrollment start forms recorded in the first quarter of 2025. Management expressed optimism about sustaining this momentum. Additionally, ongoing Phase III programs in major depressive disorder (MDD) and schizophrenia are expected to yield data by 2027 and 2027-2028, respectively.
Upcoming catalysts for Neurocrine Bio. include Phase II readouts for MDD with NBI-770 and Phase III results for Dyskinetic Cerebral Palsy and adjunctive schizophrenia with valbenazine, all anticipated in 2025. Guggenheim’s analysts remain optimistic about the company’s growth potential, reiterating their Buy rating and $165 price target.
In other recent news, Neurocrine Biosciences has reported positive results from a Phase 2 clinical trial for its investigational drug, NBI-1117568, which showed significant improvements in schizophrenia symptoms. The company is moving forward with a Phase 3 registrational program to further assess the drug’s efficacy and safety. Additionally, Neurocrine presented Phase 3 study data at the Pediatric Endocrine Society Annual Meeting, demonstrating that CRENESSITY™ effectively sustains reductions in glucocorticoid doses and improves clinical outcomes for pediatric patients with classic congenital adrenal hyperplasia (CAH). These findings support the ongoing evaluation of CRENESSITY’s long-term safety and efficacy.
Meanwhile, RBC Capital has reaffirmed an Outperform rating for Neurocrine, highlighting confidence in the company’s performance and growth potential. Stifel analysts also maintain a Buy rating on Neurocrine shares, with a consistent price target of $166, expressing optimism about the company’s research pipeline and future prospects. In related developments, Matthew Abernethy, Neurocrine’s Chief Financial Officer, has joined the Board of Directors at Fate Therapeutics (NASDAQ:FATE), bringing his extensive financial expertise to support the company’s growth. These recent developments underscore Neurocrine’s active engagement in advancing its treatment portfolio and strategic partnerships.
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