Neurocrine Bio stock target raised at Needham following earnings

Tuesday, Neurocrine Biosciences, Inc. (NASDAQ:NBIX), a biopharmaceutical company with a market capitalization of $10.86 billion, received an updated price target from Needham, with the firm raising it to $139 from $138 while maintaining a Buy rating. The adjustment comes after Neurocrine reported earnings after the market closed on Monday, which surpassed expectations, particularly in terms of Ingrezza sales. According to InvestingPro data, the company currently trades below its Fair Value, suggesting potential upside opportunity.

The company managed to deliver on key aspects, including reaffirming the full-year guidance for Ingrezza, its flagship product. Ingrezza sales for the first quarter reached $545 million, exceeding the anticipated figure of over $525 million that was discussed following a recent upgrade. This performance contributes to the company’s impressive 24.81% revenue growth over the last twelve months. Additionally, the patient start form number for Crenessity, another product from Neurocrine, was strong at 413, surpassing investor expectations which were in the approximate range of 250.

Needham’s analyst noted that Ingrezza is anticipated to continue its growth trajectory in the forthcoming quarters. This optimism is based on expanded payer coverage, new marketing initiatives, and an increased sales force. As a result of these positive developments, the firm has increased its full-year sales forecast for Crenessity from $60 million to $85 million, leading to the slight price target increase. InvestingPro analysis reveals the company maintains strong financial health with a 67.52% gross profit margin and operates with moderate debt levels.

Investors are now looking ahead to several key data readouts for the company. These include Phase 3 results for valbenazine in adjunctive schizophrenia and dyskinetic cerebral palsy, as well as Phase 2 data for NBI-770 in major depressive disorder (MDD), expected to be released in mid to late 2025.

The positive earnings report and subsequent price target upgrade are likely to influence Neurocrine Biosciences stock performance in today’s trading session.

In other recent news, Neurocrine Biosciences reported its Q1 2025 earnings, which did not meet analyst expectations, with earnings per share (EPS) at $0.70 compared to the forecasted $0.77. The company also reported revenue of $572.6 million, falling short of the anticipated $593.71 million. Despite these misses, Neurocrine reaffirmed its sales guidance for INGREZZA at $2.5 to $2.6 billion for 2025, indicating continued confidence in its market position. Additionally, Evercore ISI updated its financial outlook for Neurocrine Biosciences, raising the stock price target to $190 from $185 and maintaining an Outperform rating, citing strong physician interest and a promising pipeline. The firm’s checks suggest sustained enthusiasm among healthcare professionals, particularly for Neurocrine’s products like Ingrezza and the newly launched KRONESITY. Neurocrine also reported $545 million in sales for INGREZZA and $15 million for KRONESITY in Q1 2025. The company’s robust cash position of approximately $1.8 billion underscores its financial health.

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