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FDA accepts new drug applications for CAH treatment

EditorAhmed Abdulazez Abdulkadir
Published 01/07/2024, 17:16
NBIX
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SAN DIEGO - Neurocrine (NASDAQ:NBIX) Biosciences, Inc. (NASDAQ:NBIX) announced today that the U.S. Food and Drug Administration (FDA) has accepted for Priority Review its two New Drug Applications (NDAs) for crinecerfont, a potential new treatment for classic congenital adrenal hyperplasia (CAH). If approved, crinecerfont would be the first new therapy for CAH in seven decades and would represent a novel therapeutic approach for this rare endocrine disorder.

The NDAs for crinecerfont include a capsule formulation (NDA# 218808) and an oral solution formulation (NDA# 218820), with the FDA setting target action dates of December 29 and December 30, 2024, respectively. The FDA has indicated that it does not plan to convene an advisory committee meeting to discuss these applications.

According to Neurocrine Biosciences, the Priority Review designation is an acknowledgment by the FDA of the urgent need for new CAH treatments and the potential of crinecerfont to provide significant benefits over current therapies. The company's Chief Medical Officer, Dr. Eiry W. Roberts, stated that the FDA's receipt of a Priority Review reflects the agency's recognition of the seriousness of CAH and the compelling efficacy results and excellent safety profile of crinecerfont.

Crinecerfont has previously received Orphan Drug and Breakthrough Therapy designations from the FDA, based on strong results from the CAHtalyst™ Phase 3 Pediatric and Adult study data. These designations could provide Neurocrine Biosciences with various incentives, including exemption from certain fees, tax credits, and the possibility of seven years of market exclusivity upon approval.

CAH is a rare genetic condition caused by a mutation leading to a deficiency of the enzyme 21-hydroxylase. This deficiency can lead to life-threatening imbalances in adrenal hormones. Current treatments involve high doses of glucocorticoids, which can have serious side effects, including metabolic complications and cardiovascular disease.

Neurocrine Biosciences specializes in developing treatments for neurological, neuroendocrine, and neuropsychiatric disorders. The company has a portfolio of FDA-approved treatments and several compounds in mid- to late-phase clinical development.

This news is based on a press release statement from Neurocrine Biosciences, Inc.

In other recent news, Neurocrine Biosciences has been making significant strides in its operations. The company's drug candidate crinecerfont met primary and key secondary endpoints in treating congenital adrenal hyperplasia (CAH) in both Pediatric and Adult Phase 3 studies. These promising results have supported two New Drug Application submissions to the U.S. Food and Drug Administration.

In the leadership arena, Neurocrine Biosciences announced the appointment of Kyle Gano, Ph.D., as the CEO-elect, set to take over in October 2024. Dr. Gano will succeed Kevin Gorman, Ph.D., the company's long-standing CEO who will retire but continue to serve on the Neurocrine Board of Directors.

Analysts have also provided their insights on the company's potential. RBC Capital maintained its Sector Perform rating on Neurocrine Biosciences, citing factors such as the strong performance of the company's product ™845, the anticipation of phase II data for ™568 muscarinic, and the robust commercial success of Ingrezza.

Meanwhile, Wells Fargo reiterated its Overweight rating on Neurocrine Biosciences shares, following the presentation of updated data on the company's drug candidate, atumelnant. Lastly, UBS increased the price target for Neurocrine Biosciences shares to $193 from the previous $174, reiterating a Buy rating on the stock.

InvestingPro Insights

As Neurocrine Biosciences, Inc. (NASDAQ:NBIX) anticipates a significant milestone with the FDA's Priority Review of crinecerfont, investors are closely monitoring the financial health and market performance of the company. According to InvestingPro, Neurocrine Biosciences is trading at a high earnings multiple with a P/E ratio of 36.58, reflecting investor confidence in the company's growth prospects, particularly as net income is expected to grow this year – an optimism that may be linked to the potential approval and market exclusivity of their new drug.

The company's stock has been noted for its low price volatility, which could be an indicator of a stable investment, especially in the often turbulent biotech sector. Moreover, Neurocrine's strong revenue growth of nearly 24% over the last twelve months as of Q1 2024, coupled with a robust gross profit margin of 68.54%, underscores the company's ability to efficiently manage its operations and scale its financials in anticipation of new product rollouts.

With a market capitalization of 13.85 billion USD, Neurocrine Biosciences stands out as a significant player in the biopharmaceutical industry. The company's solid financial position is further supported by a PEG ratio of 0.08, suggesting that its earnings growth potential is not yet fully reflected in its current stock price. Investors looking to delve deeper into the company's financials and future outlook can find additional InvestingPro Tips that provide insights into factors such as cash flow sufficiency, asset liquidity, and debt management. There are currently 12 additional tips available on InvestingPro, offering a comprehensive analysis for those considering an investment in Neurocrine.

For investors seeking to make informed decisions, using the coupon code PRONEWS24 grants an additional 10% off a yearly or biyearly Pro and Pro+ subscription to InvestingPro, where they can access in-depth metrics and expert analysis that may prove crucial in evaluating Neurocrine's investment potential, especially in light of the company's promising developments and strong financial performance.

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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