NBIX - Neurocrine Biosciences slips after Canaccord cut rating for a better entry point

Neurocrine Biosciences (NBIX -3.2%) trading lower in morning hours after Canaccord Genuity lowered the recommendation to hold from buy, citing the need for a better entry point on uncertain sales prospects for the company’s lead revenue generator Ingrezza. While Neurocrine (NASDAQ:NBIX) posted better-than-expected Q2 revenue, “Ingrezza sales remain difficult to predict,” the analyst Sumant Kulkarni with the price target of $108 indicating a premium of ~16.5%. With $1B annualized revenue for Ingrezza, “base is now large enough for step changes to be difficult to pull off,” Kulkarni added, citing a potential sales upside subject to its approval for Huntington's chorea. With Phase 3 registrational trial for INGREZZA (valbenazine) in Huntington's chorea fully enrolled, the company expects its topline data before the year-end. INGREZZA product sales represented ~91.7% of Neurocrine’s (NBIX) total revenue in Q2 2021, compared to ~88.5% in the previous year’s quarter.

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Neurocrine Biosciences slips after Canaccord cut rating for a better entry point