TEVA - Neurocrine Biosciences cut to neutral at Piper on growth trajectory of Ingrezza
Piper Sandler has downgraded Neurocrine Biosciences (NBIX -4.6%) to neutral from overweight amid concerns of more modest long-term growth of its tardive dyskinesia ("TD") treatment Ingrezza (valbenazine). The firm also lowered its price target to $94 from $114 (~2% upside based on Wednesday's close). Piper conducted a survey of 25 psychiatrists who prescribe TD drugs, such as Ingrezza and Teva Pharmaceutical Industries' (TEVA -2.1%) Austedo (deutetrabenazine) which served as the basis for their downgrade. Of the 25 respondents, 72% said they plan to prescribe Ingrezza more frequently or slightly more frequently over the next year or two compared to now. "Our latest thinking now is that absent a sale of the company to a strategic buyer where there is overlapping commercial infrastructure (and hence a chock-full of operating synergies), Neurocrine (NBIX -4.7%) shares are unlikely to appreciate considerably," wrote analyst David Amsellem. Read why Seeking Alpha contributor Stephen Simpson argues
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Neurocrine Biosciences cut to neutral at Piper on growth trajectory of Ingrezza