UBS reiterates Buy rating on Neurocrine Bio. stock with $188 target

Investing.com - UBS has reiterated a Buy rating on Neurocrine Biosciences (NASDAQ:NBIX) stock with a price target of $188.00, citing potential in the company’s osavampator drug development program. The company, currently valued at $14.4 billion, has seen 10 analysts revise their earnings estimates upward for the upcoming period, according to InvestingPro data. With analyst targets ranging from $124 to $200, the stock currently trades near its 52-week high of $154.61.

The detailed Phase 2 SAVITRI trial data presented at the PSYCH Congress this week revealed that the 1mg dose of osavampator, which is the dose advancing to Phase 3, demonstrated greater efficacy than the 3mg dose. Both doses showed clinical activity with improvements in MADRS scores by Day 28 that were maintained or improved by Day 56. The company’s strong financial position is reflected in its "GREAT" overall health score on InvestingPro, with impressive revenue growth of 18.4% in the last twelve months.

UBS noted that the inverse dose response seen in the trial data confirmed prior market expectations and believes the Phase 2 success is not yet reflected in Neurocrine’s stock price, suggesting the detailed data release does not represent negative news for investors.

The firm highlighted osavampator’s benign safety profile, with no seizures reported—a significant advantage given historical challenges with this treatment modality. Total treatment-emergent adverse events were slightly more common in the 1mg dose versus the 3mg dose.

The initial topline results from the SAVITRI trial were released in April 2024, but did not break down efficacy by dose at that time. UBS views osavampator as potentially "a valuable pipeline asset in the long-run" for Neurocrine Biosciences.

In other recent news, Neurocrine Biosciences reported strong financial results for the second quarter of 2025. The company achieved Ingrezza sales of approximately $624 million, slightly surpassing consensus estimates of $621 million. Additionally, Neurocrine’s non-GAAP earnings per share were $1.65, exceeding analysts’ expectations of $1.52. Following these results, several firms adjusted their price targets for Neurocrine. Guggenheim increased its target to $175, maintaining a Buy rating, while Mizuho raised its target to $145, describing the results as "solid" and maintaining a Neutral rating. BMO Capital also raised its price target to $124, citing higher projected revenues for Crenessity, which outperformed expectations by 122%. RBC Capital lifted its target to $149, noting strong prescription trends for Crenessity. Neurocrine also announced plans to present expanded data from its Phase 2 SAVITRI study for osavampator in adults with major depressive disorder at the upcoming Psych Congress 2025.

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