On Friday, H.C. Wainwright adjusted its outlook on Neurocrine (NASDAQ:NBIX) Biosciences (NASDAQ: NBIX), increasing the price target to $190 from the previous $160, while reaffirming a Buy rating on the stock.
The adjustment follows Neurocrine's recent announcement regarding the anticipated release of top-line results from a Phase 2 study of NBI-1117568, an M4 agonist, which is expected in the third quarter of 2024.
The firm's analyst noted the importance of efficacy, safety, and pharmacokinetics (PK) in the current medical landscape. The optimism surrounding Neurocrine's prospects is partly due to the growing patient demand for Ingrezza, the company's efforts to broaden the commercial reach of the drug, and the potential label extension for Huntington's disease (HD) chorea.
The analyst's reassessment of Ingrezza's market penetration led to an increase in the projected revenue for the drug, which is now expected to reach $2.3 billion in 2024, with potential growth up to $3.3 billion by 2031.
Neurocrine Biosciences focuses on developing treatments for neurological and endocrine-related diseases and disorders. The company's product, Ingrezza, is specifically designed for the treatment of tardive dyskinesia, a movement disorder. The anticipation around NBI-1117568 adds to the company's portfolio of potential therapies in the pipeline.
Meanwhile, Citi also adjusted its outlook on Neurocrine Biosciences, increasing the price target to $158 due to strong Ingrezza sales. The company's second-quarter 2024 performance showed Ingrezza sales exceeding expectations, leading to an increase in the full-year 2024 revenue guidance to between $2.25 billion and $2.3 billion.
Meanwhile, Neurocrine Biosciences introduced a new sprinkle formulation of INGREZZA, designed to assist adults with tardive dyskinesia and chorea associated with Huntington's disease who have difficulty swallowing.
InvestingPro Insights
As Neurocrine Biosciences (NASDAQ:NBIX) continues to show promise with its pipeline and market performance, it's worth noting the company's financial health and market standing through key metrics. InvestingPro data indicates a robust market capitalization of $15.41 billion, reflecting investor confidence in the company's value. The P/E ratio, a measure of the company's current share price relative to its per-share earnings, stands at 42.99, suggesting a higher valuation compared to some peers in the industry. This is further supported by the company's strong revenue growth over the last twelve months, which is reported at nearly 24%. Such growth is a testament to the company's expanding market presence and successful commercial strategies.
InvestingPro Tips highlight that Neurocrine Biosciences is expected to grow its net income this year, aligning with the positive revenue trajectory. Additionally, the company's stock is noted for its low price volatility, which may appeal to investors seeking a more stable investment in the biotech sector. For those interested in diving deeper into Neurocrine Biosciences' financials and market performance, InvestingPro offers over 12 additional tips, providing a comprehensive analysis for informed investment decisions.
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