TAK - Neurocrine Biosciences' INTERACT Study Fails; Worse For Sentiment Than Value

• Neurocrine announced that its Phase II INTERACT study of luvadaxistat failed to achieve its primary endpoint of easing the negative symptoms of schizophrenia.
• I expected this trial to fail, but the drug did hit a secondary endpoint related to cognition; cognitive impairment is a major issue with schizophrenia and a potentially valid target.
• Few analysts expected this trial to succeed, but the bigger hit is to sentiment, as there's little to look forward to until a potential reacceleration of product sales in 2H'21.
• For investors who can stick with a stock lacking near-term catalysts, Neurocrine shares look undervalued below $130.

For further details see: