RBC Capital maintains outperform rating for Neurocrine Bio stock

Published 02/06/2025, 12:52
RBC Capital maintains outperform rating for Neurocrine Bio stock

On Monday, RBC Capital analysts reaffirmed an Outperform rating for Neurocrine Bio. (NASDAQ: NASDAQ:NBIX) with a price target of $145.00, adding to the broader analyst consensus that shows the stock as undervalued according to InvestingPro Fair Value metrics. The analysts expressed confidence that the company’s second-quarter performance will not be negatively impacted by payer dynamics, and noted that growth in new prescriptions is expected to support the company’s full-year guidance. This optimism is supported by the company’s impressive 21.73% revenue growth over the last twelve months.

The analysts highlighted that while the first-quarter performance has alleviated some concerns about Ingrezza, there is still some uncertainty regarding payer and competitor dynamics and the ability of Ingrezza to meet its 2025 guidance. Recent checks on formularies and prescriptions indicate stability in Ingrezza’s coverage, and growth in new prescriptions should support this. The company’s strong financial position, with a current ratio of 3.13 and moderate debt levels, provides a solid foundation for its growth initiatives.

Additionally, the analysts noted management’s optimism about the market uptake of Crenessity, which could contribute to ongoing stock momentum. Despite the medium-term challenge posed by IRA discounting for competitor Austedo, expansion in the VMAT2 market could help offset this issue.

RBC Capital’s analysis suggests potential for further upside in Neurocrine Bio’s shares, driven by these factors. The reaffirmation of the Outperform rating indicates continued confidence in the company’s prospects.

In other recent news, Neurocrine Biosciences has reported several significant developments. The company announced positive Phase 2 study results for its investigational drug NBI-1117568, which showed improvements in schizophrenia symptoms. These findings have led to the initiation of a Phase 3 registrational program. Additionally, Neurocrine shared Phase 3 data from the CAHtalyst Pediatric study, highlighting that CRENESSITY™ sustains reductions in glucocorticoid doses and improves clinical outcomes for pediatric patients with classic congenital adrenal hyperplasia.

In another study, Neurocrine found that patients with tardive dyskinesia showed improvements in quality of life measures after treatment with INGREZZA®. The company’s Chief Medical (TASE:BLWV) Officer, Eiry W. Roberts, emphasized the significance of these findings. Furthermore, Stifel analysts maintained their Buy rating on Neurocrine shares with a price target of $166, reflecting optimism about the company’s research pipeline. Meanwhile, Fate Therapeutics (NASDAQ:FATE) announced the appointment of Matthew Abernethy to its Board of Directors, bringing his extensive financial expertise to the company. These recent developments underscore the ongoing advancements and strategic changes within both companies.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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