Neurocrine Bio. stock price target raised to $195 from $188 at UBS

Investing.com - UBS raised its price target on Neurocrine Bio. (NASDAQ:NBIX) to $195.00 from $188.00 on Thursday, while maintaining a Buy rating on the biopharmaceutical company. According to InvestingPro data, the stock currently trades at $140.42, with analysts’ consensus suggesting a 22% upside potential.

The price target adjustment reflects UBS’s updated analysis of Ingrezza, Neurocrine’s treatment for tardive dyskinesia, in relation to potential impacts from Medicare drug price negotiations under the Inflation Reduction Act (IRA). The company has demonstrated strong financial health, earning a "GREAT" rating from InvestingPro’s comprehensive analysis.

UBS noted that investor concerns regarding potential negative impacts from government price negotiations may be "overdone" based on management commentary and key opinion leader discussions. The firm’s revised analysis shows "enhanced prospect for Ingrezza revenue from ’29 and onward" compared to previous projections.

The updated price target is based on higher 2030 estimated sales of $5.1 billion, up from a previous estimate of $4.5 billion, though UBS lowered its EV/2030 estimated sales multiple to 5.0x from 5.5x to reflect near-term competitive concerns around the IRA.

UBS characterized these competitive concerns as potentially "short-lived" and indicated that its revised price target is supported by a discounted cash flow (DCF) framework.

In other recent news, Neurocrine Biosciences reported strong financial results for the second quarter of 2025, with notable growth in product sales, especially from its flagship drug, INGREZZA. This robust performance highlights the company’s successful market strategies, though the report also noted increased operational costs. In addition, Neurocrine Biosciences appointed Mike Sibley as Senior Vice President and General Manager of its Neuropsychiatry franchise. Sibley, who has over 20 years of commercial experience in the biopharmaceutical industry, will be responsible for developing and executing sales and marketing strategies for the company’s neuropsychiatry products. These recent developments indicate a strategic focus on expanding Neurocrine’s presence in the neuropsychiatry market.

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