Neurocrine (NBIX) AI Stock Analysis

• Market Cap: $14.46B
• Dividend Yield: N/A
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): 34.6
• Beta (1Y): 0.61
• 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: 1,224,797
• 30 Day Avg. Volume: 1,007,203
• 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: 0.95
• Enterprise Value/Revenue: 5.13
• Enterprise Value/Gross Profit: 5.21
• Enterprise Value/Ebitda: 20.67
• 1Y Price Target: $183.22
• Price Target Upside: 26.36% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 21
• EPS Forecast (FY): 5.11
• Revenue Forecast (FY): $2.86B

• Rating: 80 Outperform
• Price Target: $175.00 ▲(20.69% Upside)

Neurocrine's strong financial performance and positive earnings call sentiment are the primary drivers of its high score. The company's proactive strategies in sales force expansion and R&D pipeline advancement position it well for future growth, despite valuation concerns and external challenges like the Inflation Reduction Act and DOJ investigation.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective commercialization of products, supporting long-term financial stability.

Sales Force Expansion

Expanding the sales force enhances market penetration and patient reach, which is crucial for sustaining growth amid regulatory changes.

R&D Pipeline Advancement

Advancing the R&D pipeline ensures a steady flow of potential new products, crucial for long-term competitiveness and innovation.

Negative Factors

DOJ Investigation

The DOJ investigation poses a risk of legal and financial repercussions, potentially impacting the company's reputation and operations.

Phase 2 Study Failure

Failure in clinical trials can delay product development and affect future revenue streams, highlighting the inherent risks in drug development.

Pricing Pressures

Pricing pressures from regulatory changes could affect revenue and profitability, necessitating strategic adjustments to maintain market position.

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 Biosciences generates revenue primarily through the commercialization of its pharmaceutical products, notably Ingrezza and Ongentys. The company earns money from product sales to healthcare providers and pharmacies, following the approval of its products by regulatory agencies such as the FDA. Additionally, Neurocrine may receive milestone payments and royalties from collaborations and partnerships with other pharmaceutical companies for the development and commercialization of new drugs. These collaborations often involve sharing the costs and risks associated with drug development, thus contributing to Neurocrine's earnings. The company also invests in R&D to expand its pipeline, which can lead to future revenue streams from new products.

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: Neutral
• Last Price: 145.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NBIX, the sentiment is Neutral. The current price of 145 is below the 20-day moving average (MA) of 150.00, below the 50-day MA of 145.87, and above the 200-day MA of 129.69, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 44.30 is Neutral, neither overbought nor oversold. The STOCH value of 9.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NBIX.

Neurocrine Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NBIX	80 Outperform	$14.46B	34.63	14.96%	―	19.61%	11.36%
AMPH	77 Outperform	$1.22B	11.79	14.84%	―	-0.03%	-27.66%
RDY	73 Outperform	$11.91B	17.36	17.72%	0.65%	10.63%	6.35%
PCRX	69 Neutral	$1.13B	59.07	2.90%	―	3.14%	―
TEVA	63 Neutral	$34.56B	49.57	10.77%	―	-0.25%	―
VTRS	60 Neutral	$13.74B	-3.85	-21.09%	4.02%	-6.40%	-320.23%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Neurocrine Corporate Events

Neurocrine Extends Eiry W. Roberts’ Employment Term

On June 2, 2025, Sanjay Keswani, M.D. took over as Chief Medical Officer of Neurocrine Biosciences, Inc., succeeding Eiry W. Roberts, M.D. In conjunction with this leadership change, Dr. Roberts transitioned to a role as Strategic Advisor, with her employment term extended until December 31, 2026, following an amendment to her employment agreement made on November 21, 2025.