Neurocrine (NBIX) AI Stock Analysis

• Market Cap: $15.19B
• Dividend Yield: N/A
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): 36.4
• Beta (1Y): 0.56
• Revenue Growth: 19.61%
• EPS Growth: 11.36%
• Country: US
• Employees: 1,800
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 2.04
• Shares Outstanding: 99,705,696
• 10 Day Avg. Volume: 1,441,502
• 30 Day Avg. Volume: 1,012,300
• PEG Ratio: 1.22
• Price to Book (P/B): 5.29
• Price to Sales (P/S): 5.82
• P/FCF Ratio: 24.60
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 5.13
• Enterprise Value/Gross Profit: 5.21
• Enterprise Value/Ebitda: 20.67
• 1Y Price Target: $176.67
• Price Target Upside: 15.95% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 23
• EPS Forecast (FY): 4.51
• Revenue Forecast (FY): $2.85B

• Rating: 79 Outperform
• Price Target: $176.00 ▲(15.51% Upside)

Neurocrine Biosciences shows strong financial performance and promising future growth potential, driven by robust revenue growth and strategic expansion plans. The technical indicators suggest a strong upward trend, although the stock is nearing overbought levels. Valuation is reasonable, though the lack of a dividend may be a drawback for some investors. The positive earnings call further supports the company's growth trajectory despite external challenges.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong product demand and market penetration, supporting long-term financial health and expansion potential.

Product Pipeline Expansion

Expanding the R&D pipeline with new studies enhances future growth prospects and strengthens the company's competitive position in the biopharmaceutical sector.

Sales Force Expansion

Increasing the sales force supports market development and maximizes patient share, crucial for sustaining growth amid potential regulatory changes.

Negative Factors

Inflation Reduction Act Impact

Potential pricing pressures from the Inflation Reduction Act could impact revenue and profitability, posing a risk to long-term financial stability.

DOJ Investigation

The DOJ investigation could lead to legal and financial repercussions, affecting the company's reputation and operational focus.

Margin Pressure

Decreasing margins suggest operational efficiency challenges, which could hinder profitability and necessitate cost management improvements.

Neurocrine Business Overview & Revenue Model

Company Description

Neurocrine Biosciences, Inc. discovers, develops, and markets pharmaceuticals for neurological, endocrine, and psychiatric disorders. The company's portfolio includes treatments for tardive dyskinesia, Parkinson's disease, endometriosis, and uterine fibroids, as well as clinical programs in various therapeutic areas. Its lead asset is INGREZZA, a VMAT2 inhibitor for the treatment of tardive dyskinesia. The company's commercial products include ONGENTYS, a catechol-O-methyltransferase inhibitor used as an adjunct therapy to levodopa/DOPA decarboxylase inhibitors for patients with Parkinson's disease; ORILISSA for the management of moderate to severe endometriosis pain in women; and ORIAHNN, a non-surgical oral medication option for the management of heavy menstrual bleeding associated with uterine fibroids in pre-menopausal women. Its product candidates in clinical development include NBI-921352 for treating pediatric patients, as well as adult focal epilepsy indications; and NBI-827104 to treat rare pediatric epilepsy and essential tremor. The company's products in clinical development also comprise NBI-1065845 for the treatment of major depressive disorder; NBI-1065846 for treating anhedonia in major depressive disorder; and NBI-118568 for the treatment of schizophrenia. It has license and collaboration agreements with Heptares Therapeutics Limited; Takeda Pharmaceutical Company Limited; Idorsia Pharmaceuticals Ltd; Xenon Pharmaceuticals Inc.; Voyager Therapeutics, Inc.; BIAL Portela & Ca, S.A.; Mitsubishi Tanabe Pharma Corporation; and AbbVie Inc. Neurocrine Biosciences, Inc. was incorporated in 1992 and is headquartered in San Diego, California.

How the Company Makes Money

Neurocrine generates revenue primarily through the sales of its approved pharmaceutical products, especially Ingrezza and Ongentys, which contribute significantly to its earnings. The company's revenue model is largely driven by direct product sales to healthcare providers and pharmacies, as well as partnerships and collaborations with other pharmaceutical companies for drug development and commercialization. Neurocrine has also engaged in licensing agreements, which can provide additional revenue streams through milestone payments and royalties. The company's strategic focus on expanding its product pipeline and leveraging its expertise in neurology and endocrinology further supports its financial growth.

Neurocrine Financial Statement Overview

Summary

Neurocrine demonstrates strong financial health with consistent revenue growth, high profitability margins, and effective cash flow management. The company maintains a solid balance sheet with low leverage, though careful monitoring of debt levels is advised.

Income Statement

Neurocrine's income statement shows strong profitability with a high gross profit margin of 98.37% and a solid net profit margin of 15.95% for TTM. Revenue growth is positive at 6.89% TTM, indicating a healthy upward trajectory. However, EBIT and EBITDA margins have slightly decreased compared to previous years, suggesting some pressure on operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.14, indicating conservative leverage. Return on equity is healthy at 15.82%, showcasing effective use of equity. The equity ratio is strong, suggesting a solid capital structure. However, a slight increase in debt levels over time could pose a potential risk if not managed carefully.

Cash Flow

Neurocrine's cash flow statement is robust, with a significant free cash flow growth rate of 12.18% TTM. The operating cash flow to net income ratio is nearly 1, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also strong at 0.93, reflecting good cash conversion. Continued focus on cash flow management will be crucial to sustain growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.68B	2.36B	1.89B	1.49B	1.13B	1.05B
Gross Profit	2.64B	2.32B	1.85B	1.47B	1.12B	1.04B
EBITDA	665.40M	639.70M	416.10M	264.60M	138.10M	148.10M
Net Income	428.00M	341.30M	249.70M	154.50M	89.60M	407.30M
Balance Sheet
Total Assets	4.27B	3.72B	3.25B	2.37B	2.07B	1.73B
Cash, Cash Equivalents and Short-Term Investments	1.11B	1.08B	1.03B	989.30M	711.30M	801.00M
Total Debt	428.40M	455.10M	428.40M	262.90M	440.40M	412.30M
Total Liabilities	1.26B	1.13B	1.02B	660.90M	698.50M	608.50M
Stockholders Equity	3.00B	2.59B	2.23B	1.71B	1.37B	1.13B
Cash Flow
Free Cash Flow	593.10M	557.20M	361.60M	322.90M	233.10M	217.60M
Operating Cash Flow	636.80M	595.40M	389.90M	339.40M	256.50M	228.50M
Investing Cash Flow	-279.80M	-126.80M	-467.10M	-177.10M	-130.20M	4.10M
Financing Cash Flow	-365.60M	-486.70M	65.30M	-234.30M	27.40M	-157.80M

Neurocrine Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 152.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NBIX, the sentiment is Positive. The current price of 152.37 is above the 20-day moving average (MA) of 143.23, above the 50-day MA of 142.02, and above the 200-day MA of 126.84, indicating a bullish trend. The MACD of 2.79 indicates Negative momentum. The RSI at 62.99 is Neutral, neither overbought nor oversold. The STOCH value of 83.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NBIX.

Neurocrine Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NBIX	79 Outperform	$15.19B	36.39	14.96%	―	19.61%	11.36%
AMPH	74 Outperform	$1.10B	10.65	14.84%	―	-0.03%	-27.66%
RDY	67 Neutral	$11.34B	16.47	17.72%	0.68%	10.63%	6.35%
TEVA	63 Neutral	$27.94B	39.15	10.81%	―	-0.25%	―
VTRS	55 Neutral	$11.66B	―	-21.09%	4.58%	-6.40%	-320.23%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PCRX	46 Neutral	$981.78M	―	2.90%	―	3.14%	―

Neurocrine Corporate Events

Neurocrine Biosciences’ Earnings Call Highlights Robust Growth

Neurocrine Biosciences’ recent earnings call painted a picture of robust growth and strategic foresight. The company reported a strong quarter, marked by significant revenue growth and successful commercial performance of its key products, CRENESSITY and INGREZZA. Despite facing challenges such as the Inflation Reduction Act and a Department of Justice investigation, Neurocrine is proactively expanding its sales force and advancing its clinical pipeline, positioning itself for sustained future growth.

Neurocrine Biosciences Completes Phase 2 Study on NBI-1070770 for Depression

Neurocrine Biosciences has recently completed a Phase 2 clinical study titled ‘A Phase 2, Multicenter, Randomized, Double-Blind, Placebo-Controlled Study to Assess the Efficacy, Safety, and Tolerability of NBI-1070770 in Adults With Major Depressive Disorder.’ The study aimed to evaluate the efficacy, safety, and tolerability of the drug NBI-1070770 in improving symptoms of major depressive disorder (MDD) compared to a placebo.

Neurocrine Biosciences Reports Strong Q3 2025 Growth

Neurocrine Biosciences is a biopharmaceutical company focused on developing treatments for neuropsychiatric, neurological, and neuroendocrine disorders, with a portfolio that includes FDA-approved therapies and a robust pipeline of clinical development programs.

Neurocrine Biosciences’ New Study on MDD Treatment: What Investors Need to Know

Neurocrine Biosciences is currently conducting a study titled A Randomized, Double-Blind, Placebo-Controlled Study to Evaluate the Maintenance of Effect of NBI-1065845 as an Adjunctive Treatment in Subjects With Major Depressive Disorder (MDD). The primary goal is to assess the efficacy of NBI-1065845 in delaying the relapse of depressive symptoms in individuals with MDD, highlighting its potential as a maintenance treatment.

Neurocrine Biosciences Advances Pediatric CAH Treatment with New Study

Neurocrine Biosciences is launching a Phase 2 clinical study titled A Phase 2, Open-Label Study to Evaluate the Pharmacokinetics, Safety, Tolerability, and Pharmacodynamics of Crinecerfont in Pediatric Subjects 0 to <2 Years of Age With Congenital Adrenal Hyperplasia. The study aims to assess the pharmacokinetics of crinecerfont in young children with congenital adrenal hyperplasia (CAH), a significant step in addressing this rare condition.