CERE - Neurocrine Biosciences Heads Into A Catalyst-Rich 2024 With Additional Upside

2024-02-10 20:30:24 ET

Summary

• Neurocrine Biosciences' shares have sold off post-earnings on concerns about its near-term opex spending and slowing growth for lead drug Ingrezza.
• Higher-than-expected opex spending includes targeted spending to grow the Ingrezza business (Huntington's chorea and long-term care facilities) and prepare the market for the eventual crinecerfont launch.
• Neurocrine has a number of Phase II read-outs coming in 2024, and while these are high-risk programs, compelling efficacy data could drive meaningful share price upside.
• Neurocrine offers an attractive combination of underrated commercial and late-stage assets and promising (if risky) early-stage clinical candidates targeting large underserved markets.

Successful biotechs rarely have the luxury of taking a leisurely victory lap, as the Street is almost always focused on the next driver. In the case of Neurocrine Biosciences (NBIX), the shares had been doing okay since my last update prior to the recent quarterly earnings/guidance announcement, but ongoing concerns about the pipeline and near-term growth prospects continue to weigh on sentiment....

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