Neurocrine begins phase 1 study of new neurological drug

SAN DIEGO - Neurocrine Biosciences, Inc. (NASDAQ: NBIX), a $11.28 billion market cap biopharmaceutical company with impressive 24.81% revenue growth over the last twelve months, today announced the commencement of a Phase 1 clinical trial for NBI-1140675, a novel VMAT2 inhibitor aimed at treating neurological and neuropsychiatric conditions. According to InvestingPro analysis, the company appears undervalued based on its Fair Value calculations, suggesting potential upside for investors interested in biotechnology stocks. The trial will assess the safety, tolerability, pharmacokinetics, and pharmacodynamics of the compound in healthy adult participants.

NBI-1140675 is designed as an oral, selective second-generation small molecule inhibitor of vesicular monoamine transporter 2 (VMAT2), a protein implicated in neurotransmitter regulation. VMAT2 inhibitors have been established as effective treatments for hyperkinetic movement disorders, such as tardive dyskinesia and chorea associated with Huntington’s disease. Neurocrine’s Chief Medical Officer, Dr. Eiry W. Roberts, emphasized the potential of NBI-1140675 to offer a differentiated benefit in the treatment landscape based on the company’s track record of developing VMAT2 inhibitors.

The initiation of this trial follows Neurocrine’s previous successes, including the FDA-approved valbenazine for tardive dyskinesia and chorea in Huntington’s disease. With a healthy gross profit margin of 67.52% and strong liquidity demonstrated by a current ratio of 3.4, the company maintains a solid financial foundation for its research and development initiatives. Valbenazine also continues to be evaluated in Phase 3 studies for additional applications.

This development adds to Neurocrine Biosciences’ portfolio, which boasts FDA-approved treatments for various neurological conditions and a pipeline of compounds in mid- to late-phase clinical development. The company has a history of focusing on under-addressed neurological, neuroendocrine, and neuropsychiatric disorders.

The press release, however, includes forward-looking statements that are subject to risks and uncertainties. These statements include potential efficacy and therapeutic benefits of NBI-1140675, which could be affected by various factors such as delays in clinical development, regulatory challenges, or unexpected adverse effects.

Investors are reminded that clinical trial outcomes are not guaranteed, and actual results may differ materially from those projected. While analysts maintain optimistic projections for the company’s profitability this year, Neurocrine Biosciences has stated that it does not intend to update these forward-looking statements beyond what is required by law. For deeper insights into NBIX’s financial health and growth potential, investors can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports, which are available for over 1,400 US stocks.

The information for this article is based on a press release statement from Neurocrine Biosciences.

In other recent news, Neurocrine Biosciences has announced a new $500 million share repurchase program following the completion of a previous $300 million buyback. This move aligns with the company’s strategy of balancing investments in product development and returning capital to shareholders. In terms of financial performance, Neurocrine reported fourth-quarter sales of $615 million for its key drug, Ingrezza, which slightly missed consensus estimates of $623 million. The company’s earnings per share also fell short of expectations, with non-GAAP EPS at $1.69 compared to the anticipated $2.02.

Analysts have responded to these developments with revised stock targets. Deutsche Bank initiated coverage with a Hold rating and a $138 price target, highlighting a cautious stance due to the need for confidence in another asset to match Ingrezza’s success. UBS adjusted its price target to $154 from $176, maintaining a Buy rating, and suggested the recent stock sell-off was overdone. Guggenheim also lowered its target to $163 but kept a Buy rating, noting the potential for long-term growth with Crenessity. H.C. Wainwright reduced its target to $185 while maintaining a Buy rating, citing Ingrezza’s market potential despite competitive pressures. Neurocrine Biosciences’ recent developments have drawn varied responses from analysts, reflecting differing perspectives on the company’s growth prospects.

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