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Neurocrine Biosciences (NBIX)
:NBIX
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Neurocrine
(NASDAQ:NBIX)68Neutral
Positive Factors
Financial Performance
Neurocrine is in a strong position to increase shareholder value.
Product Potential
Neurocrine Biosciences is expected to see potential upside with multiple commercial products like Ingrezza and Crenessity and late stage programs in schizophrenia and depression.
Negative Factors
Market Challenges
Street expectations for Crenessity's first-year sales are considered aggressive.
Neurocrine (NBIX) vs. S&P 500 (SPY)
Market Cap
$11.23B
Dividend YieldN/A
Average Volume (3M)1.54M
Price to Earnings (P/E)34.3
Beta (1Y)0.59
Revenue Growth24.81%
EPS Growth33.67%
CountryUS
Employees1,800
SectorHealthcare
Sector Strength74
IndustryPharmaceuticals
Share Statistics
EPS (TTM)3.29
Shares Outstanding99,703,530
10 Day Avg. Volume1,370,230
30 Day Avg. Volume1,538,668
Financial Highlights & Ratios
PEG Ratio1.02
Price to Book (P/B)N/A
Price to Sales (P/S)4.77
Price to Cash Flow (P/CF)11.60
P/FCF Ratio11.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$165.71Price Target Upside46.59% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering23
Neurocrine Business Overview & Revenue Model
Company DescriptionNeurocrine Biosciences, Inc. (NBIX) is a biopharmaceutical company focused on developing and commercializing treatments for neurological and endocrine-related disorders. The company operates in the healthcare sector, leveraging innovative research to address unmet medical needs. Neurocrine's core products include INGREZZA (valbenazine), a medication for tardive dyskinesia, and ORILISSA (elagolix), developed in partnership with AbbVie for the treatment of endometriosis pain. The company's mission is to improve patient lives by delivering life-changing therapies through a commitment to scientific excellence and innovation.
How the Company Makes MoneyNeurocrine Biosciences generates revenue primarily through the sales of its FDA-approved products, with INGREZZA being a significant contributor to its income due to its market presence and demand for treating tardive dyskinesia. Additionally, Neurocrine earns revenue from collaborative agreements and partnerships, such as its collaboration with AbbVie for ORILISSA, where it receives royalties and milestone payments. The company's earnings are further supported by strategic licensing agreements and research collaborations that enhance its product pipeline and expand its market reach. Neurocrine's revenue model is built on a strong foundation of proprietary drug development, strategic partnerships, and a focus on addressing niche therapeutic areas with high unmet needs.
Neurocrine Financial Statement Overview
Summary
Neurocrine exhibits strong financial performance characterized by impressive revenue growth, high profitability margins, and sound financial stability. The company's cash flow generation is robust, supporting its growth trajectory. Overall, Neurocrine is well-positioned with efficient operations and a solid balance sheet, though continuous monitoring of leverage is advisable.Income Statement
Neurocrine's revenue has shown significant growth with a strong revenue growth rate year-over-year, indicating robust expansion. The gross profit margin is exceptionally high, showcasing efficient cost management. The net profit margin has improved, reflecting enhanced profitability. EBIT and EBITDA margins are solid, indicating operational efficiency.85
Very Positive
Balance Sheet
The company maintains a healthy debt-to-equity ratio, suggesting manageable leverage. Return on equity has improved, reflecting effective use of equity financing. The equity ratio indicates a solid proportion of equity financing in the asset base, ensuring financial stability.78
Positive
Cash Flow
Neurocrine demonstrates a strong growth in free cash flow, which supports its expanding operations. The operating cash flow to net income ratio is robust, indicating good cash generation relative to earnings. The free cash flow to net income ratio is favorable, highlighting efficient capital expenditure management.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.36B | 1.89B | 1.49B | 1.13B | 1.05B | Gross Profit |
| 2.32B | 1.85B | 1.47B | 1.12B | 1.04B | EBIT |
| 570.50M | 250.90M | 249.00M | 196.90M | 318.90M | EBITDA |
| 610.10M | 358.00M | 264.60M | 218.70M | 336.10M | Net Income Common Stockholders |
| 341.30M | 249.70M | 154.50M | 89.60M | 407.30M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.08B | 1.03B | 989.30M | 711.30M | 801.00M | Total Assets |
| 3.72B | 3.25B | 2.37B | 2.07B | 1.73B | Total Debt |
| 455.10M | 428.40M | 262.90M | 440.40M | 412.30M | Net Debt |
| 222.10M | 177.30M | 0.00 | 99.60M | -388.70M | Total Liabilities |
| 1.13B | 1.02B | 660.90M | 698.50M | 608.50M | Stockholders Equity |
| 2.59B | 2.23B | 1.71B | 1.37B | 1.13B |
| Cash Flow | Free Cash Flow | |||
| 557.20M | 361.60M | 322.90M | 233.10M | 217.60M | Operating Cash Flow |
| 595.40M | 389.90M | 339.40M | 256.50M | 228.50M | Investing Cash Flow |
| -126.80M | -467.10M | -177.10M | -130.20M | 4.10M | Financing Cash Flow |
| -486.70M | 65.30M | -234.30M | 27.40M | -157.80M |
Neurocrine Technical Analysis
Negative
113.04
Price Trends
132.84
Negative
128.30
Negative
131.58
Negative
Market Momentum
-5.84
Negative
32.16
Neutral
27.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NBIX, the sentiment is Negative. The current price of 113.04 is below the 20-day moving average (MA) of 116.42, below the 50-day MA of 132.84, and below the 200-day MA of 131.58, indicating a bearish trend. The MACD of -5.84 indicates Negative momentum. The RSI at 32.16 is Neutral, neither overbought nor oversold. The STOCH value of 27.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NBIX.
Neurocrine Risk Analysis
Neurocrine disclosed 44 risk factors in its most recent earnings report. Neurocrine reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Neurocrine Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $76.36B | 18.22 | 15.95% | 0.13% | 8.27% | 10.35% | |
69 Neutral | $21.57B | 13.45 | 10.36% | ― | -1.60% | 39.71% | |
68 Neutral | $11.23B | 34.35 | 14.16% | ― | 24.81% | 33.67% | |
64 Neutral | $126.25B | ― | -3.15% | ― | 11.64% | -114.72% | |
60 Neutral | $13.51B | 258.44 | 0.76% | ― | 14.76% | -88.32% | |
50 Neutral | $32.26B | ― | -414.62% | ― | 22.97% | 38.54% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% |
* Healthcare Sector Average
Performance Comparison
NBIX
Neurocrine
113.04
-25.57
-18.45%
ALNY
Alnylam Pharma
244.52
95.42
64.00%
BIIB
Biogen
150.38
-79.69
-34.64%
INCY
Incyte
70.79
10.00
16.45%
REGN
Regeneron
707.51
-255.69
-26.55%
VRTX
Vertex Pharmaceuticals
488.29
73.82
17.81%
Neurocrine Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: -24.90% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Neurocrine's strong performance in 2024 with record sales for INGREZZA and the successful launch of Quinicity. While there are challenges, such as increased competitive pressure and a measured launch for Quinicity, the company is taking proactive steps to address these issues. The overall sentiment is cautiously optimistic with a focus on growth and expansion in the neuroscience field.Highlights
Record Sales Growth for INGREZZA
2024 was a record growth year for INGREZZA, with annual sales increasing by approximately $475 million.
Quinicity Launch and FDA Approval
Quinicity received early FDA approval with a broad labeling, marking it as the first new treatment for congenital adrenal hyperplasia in over 70 years.
Expanded Neuroscience Pipeline
Neurocrine's pipeline is set to grow from 12 to 18 programs by year-end, representing one of the broadest neuroscience pipelines in the industry.
Lowlights
Increased Competitive Pressure
The company faced increased competitive pressure and utilization management by payers, leading to a slower growth trajectory heading into 2025.
Measured Launch for Quinicity
Quinicity's initial growth is expected to be measured due to delayed reimbursement timing, frequency of patient flow, and real-world experience trialing.
Salesforce Disruption
The expansion of the salesforce in Q4 led to some disruptions, which are expected to impact the growth trajectory initially in 2025.
Company Guidance
During the call, Neurocrine Biosciences provided guidance for 2025, anticipating INGREZZA sales to reach between $2.5 billion and $2.6 billion, which represents an approximate $250 million growth at the midpoint compared to 2024. Although facing increased competitive pressure and utilization management by payers, the company remains focused on growing its market presence through an expanded sales force and educational efforts, aiming to address the 90% of tardive dyskinesia (TD) patients untreated with VMAT2 inhibitors. Additionally, the company expects the launch of Quinicity, targeting classical congenital adrenal hyperplasia, to have a blockbuster potential long-term, although initial revenue growth is expected to be measured due to reimbursement and patient flow dynamics. Looking ahead, Neurocrine aims to expand its clinical stage pipeline from 12 to 18 programs by year-end, with significant growth anticipated from innovative treatments in major depressive disorder and schizophrenia. The company is also aligning its 2025 SG&A and R&D expenditures to support these growth initiatives and anticipates advancing its osuvamphetor program into phase three while funding development milestones for Takeda and Nexera.Neurocrine Corporate Events
Product-Related AnnouncementsBusiness Operations and Strategy
Neurocrine Amends License Agreement with Takeda
Positive
Jan 27, 2025
On January 24, 2025, Neurocrine Biosciences announced an amendment to its Exclusive License Agreement with Takeda Pharmaceutical, originally established in June 2020, to develop and commercialize osavampator. The amended agreement allows Neurocrine exclusive rights to develop and commercialize osavampator worldwide, except in Japan where Takeda retains rights. This strategic move shifts the partnership to a royalty-bearing license, positioning Neurocrine to advance osavampator, a potential first-in-class AMPA modulator for major depressive disorder, into Phase 3 trials. The agreement outlines shared development costs and mutual royalty arrangements, potentially enhancing Neurocrine’s market positioning and stakeholder value by streamlining its focus on osavampator’s global development, excluding Japan.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.