Neurocrine Biosciences director sells shares worth $21.8 million

Published 30/01/2025, 01:08
Neurocrine Biosciences director sells shares worth $21.8 million

Kevin Charles Gorman, a director at Neurocrine Biosciences Inc. (NASDAQ:NBIX), recently sold a significant portion of his holdings in the company. According to a recent SEC filing, Gorman sold 146,105 shares of common stock on January 27, 2025, at a weighted average price of approximately $149.46 per share. This transaction amounted to a total value of $21.8 million. The sale comes as the stock trades near its 52-week high of $157.98, with InvestingPro data showing the company’s market capitalization at $15.23 billion.

The shares were sold under a Rule 10b5-1 trading plan, which Gorman adopted in June 2024. The plan allows executives to set up a predetermined schedule for selling stocks, helping to avoid any accusations of insider trading. Following this transaction, Gorman retains 514,596 shares, which are held by the Gorman and Blais Family Trust, where he has voting and investment power.

In addition to the sale, Gorman also exercised stock options to acquire 146,105 shares at a price of $32.99 per share. This transaction, however, did not involve any direct cash outflow as it was part of a non-qualified stock option plan.

Neurocrine Biosciences, based in San Diego, focuses on developing treatments for neurological and endocrine-related disorders. The company’s stock has been closely watched by investors, and this transaction by a key executive may draw additional attention to its performance and future prospects. InvestingPro subscribers have access to 15+ additional exclusive insights about NBIX, including detailed analysis of its financial health, which currently rates as "GREAT" with an overall score of 3.75 out of 5.

In other recent news, Neurocrine Biosciences has been making significant strides in the biopharmaceutical industry. The company’s recent developments include the FDA approval and subsequent launch of its novel treatment, Crenessity, for congenital adrenal hyperplasia (CAH). This aligns with the company’s impressive 25.7% revenue growth over the past year. Analysts from Piper Sandler, Goldman Sachs, and H.C. Wainwright have maintained positive ratings on Neurocrine Biosciences, reflecting confidence in the company’s financial outlook and the market potential of Crenessity.

In addition, Oppenheimer reiterated its Outperform rating on shares of Neurocrine Biosciences, with a steady price target of $192.00. The firm’s analysts met with the company’s management to discuss the strategic priorities for the year and came away with positive expectations. Furthermore, Neurocrine Biosciences has expanded its salesforce for Ingrezza, a treatment for tardive dyskinesia (TD), aiming to increase its reach within the approximately 800,000-patient market.

Lastly, Neurocrine Biosciences has altered their partnership with Takeda on the AMPA program, which includes the drug osavampator/NBI-845. With this amendment, Neurocrine now holds full worldwide development and commercialization rights, except in Japan. The Stifel analysts see this development as a step forward for Neurocrine, granting them more autonomy over a significant asset. The deal’s financial details, particularly the royalty payments Neurocrine will owe to Takeda, were outlined in a Securities and Exchange Commission (SEC) filing. The company’s strong financial position, with a healthy current ratio of 4.37 and moderate debt levels, suggests it’s well-positioned to handle these obligations.

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