NBIX - Neurocrine initiated Equal Weight at Wells Fargo despite upcoming catalysts

• Wells Fargo has launched its coverage on Neurocrine Biosciences ( NASDAQ: NBIX ) with an Overweight recommendation even as the biotech, targeting treatments for neurological and psychiatric disorders, sees multiple Phase 2 readouts next year.
• “2023 will be a litmus test year for NBIX,” the analysts led by Mohit Bansal wrote, as the company plans to share Phase 2 data for clinical-stage assets NBI-1065845 and NBI-1065846 for major depressive disorder (MDD) & NBI-921352 for focal onset seizure next year.
• However, “we believe these assets are riskier show-me stories at this point,” the team wrote with a $110 per share target, citing the need for a more attractive entry point or de-risking of the pipeline.
• NBIX’s lead asset Ingrezza has room for growth, the analysts reasoned, noting its potential to more than double the opportunity to over $3.2B peak risk-adjusted sales.
• In August, NBIX lifted its 2022 Ingrezza net product sales guidance to $1.35 - $1.40B after the tardive dyskinesia therapy brought $350M net product sales for the second quarter, with ~32% YoY growth.

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