On Monday, BMO Capital maintained its Market Perform rating on Neurocrine (NASDAQ:NBIX) Biosciences (NASDAQ:NBIX), a $12.8 billion biopharmaceutical company currently rated as undervalued according to InvestingPro analysis, with a steady price target of $121.00. The company demonstrates strong financial health with a "GREAT" overall score and impressive revenue growth of 26% over the last twelve months.
The company's newly approved drug, Crenessity (crinecerfont), has been cleared for use in both adults and children aged 4 and above with classic Congenital Adrenal Hyperplasia (CAH). It is prescribed in combination with glucocorticoids to manage androgen levels.
The availability and pricing details for Crenessity are anticipated to be announced towards the end of December. While BMO Capital forecasts a gradual uptake of the drug, citing several initial hurdles, it's worth noting that 12 analysts have recently revised their earnings expectations upward, according to InvestingPro data.
The company maintains a strong financial position with a healthy current ratio of 4.37, indicating robust liquidity to support the drug's launch. The firm notes that widespread commercial access is not expected until the second half of 2025, with the provision of free medication during the period of insurance claim adjudication.
Another challenge highlighted is the fact that only about 15% of potential patients are located in or near specialized treatment centers, which could limit the drug's reach. Additionally, the drug's label contains a black box warning, the most stringent caution by the FDA, which stresses the need for careful monitoring of any changes to glucocorticoid therapy.
The dosing regimen for Crenessity is also complex, requiring administration twice daily with meals and dosage adjustments for patients taking strong CYP3A4 inducers. These factors may pose significant barriers to the drug's immediate adoption in the treatment of CAH. For investors seeking deeper insights, InvestingPro offers a comprehensive research report on Neurocrine Biosciences, along with 10+ additional ProTips that could help evaluate the company's long-term potential.
In other recent news, Neurocrine Biosciences reported significant third-quarter earnings, with sales of its drug Ingrezza reaching $613 million. This led to an updated annual revenue guidance of $2.3 to $2.32 billion.
Piper Sandler maintained an Overweight rating on Neurocrine Biosciences with a price target of $160, based on anticipated demand for the company's treatment for congenital adrenal hyperplasia, crinecerfont.
BMO Capital Markets also upgraded its price target for Neurocrine Biosciences to $121 from $114, influenced by promising third-quarter results and the anticipation of FDA approval for crinecerfont.
These recent developments also include Neurocrine Biosciences' CEO Kyle Gano announcing a $300 million share repurchase plan and the company's preparation for the launch of crinecerfont for CAH. Further, the company is advancing its pipeline with Phase III studies for NBI-845 and NBI-568 slated for 2025.
Moreover, Neurocrine Biosciences revealed study results indicating that nearly 60% of participants achieved remission of tardive dyskinesia after 48 weeks of treatment with INGREZZA capsules.
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