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Neurocrine (NBIX)
NASDAQ:NBIX
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Neurocrine (NBIX) AI Stock Analysis

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NBIX

Neurocrine

(NASDAQ:NBIX)

Rating:78Outperform
Price Target:
$152.00
▲(8.26% Upside)
Neurocrine Biosciences' strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. Technical indicators support a positive trend, although valuation concerns due to a high P/E ratio and lack of dividend yield slightly temper the overall score.
Positive Factors
Financial Performance
Neurocrine posted a breakout quarter for Crenessity, generating $53M in sales, significantly surpassing consensus expectations.
Product Launch
The Crenessity launch has been solid beating both the company's and investor expectations, and management is pleased with the performance so far.
Negative Factors
Pricing Pressure
Management expects a 5% hit to the average selling price driven by increased contracting for Medicare formulary coverage.
Revenue Guidance
Neurocrine lowered its FY25 Ingrezza guidance by $50M at the top end, suggesting that Ingrezza's revenue growth in the VMAT2 market may be hampered by continued Austedo growth.

Neurocrine (NBIX) vs. SPDR S&P 500 ETF (SPY)

Neurocrine Business Overview & Revenue Model

Company DescriptionNeurocrine 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 MoneyNeurocrine 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 Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Shows how revenue is distributed across different business areas, highlighting which segments are driving growth and which may need strategic focus or improvement.
Chart InsightsNeurocrine's Ingrezza continues to drive revenue growth, with a notable 15% sequential increase in Q2 2025, fueled by strategic market access investments and sales force expansion. Despite a dip in Q1 2025, the segment rebounded strongly, aligning with the company's adjusted sales guidance. However, pricing pressures and regulatory uncertainties, such as the Inflation Reduction Act, may impact future pricing dynamics. The successful launch of Crenessity and robust pipeline developments further bolster Neurocrine's growth prospects, although challenges remain with Valbenazine's performance in schizophrenia trials.
Data provided by:Main Street Data

Neurocrine Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance and successful product launches, particularly with CRENESSITY and INGREZZA, alongside robust pipeline development. However, there are notable challenges such as the failure of the valbenazine study to meet its primary endpoint and pricing pressures on INGREZZA. Despite these challenges, the overall sentiment reflects confidence in continued growth and strategic investments.
Q2-2025 Updates
Positive Updates
Strong Financial Performance
Neurocrine Biosciences reported $682 million in net product sales during the second quarter of 2025, representing 17% year-over-year growth.
Successful Launch of CRENESSITY
CRENESSITY grew from $15 million in Q1 2025 to $53 million in Q2 2025, reflecting strong early adoption with over 75% of all dispensed prescriptions being reimbursed.
INGREZZA Growth
INGREZZA delivered $624 million in second-quarter sales, including a record number of new patient starts, and showed gains in prescription market share.
Robust Pipeline Development
Initiated multiple Phase III programs including osavampator in major depressive disorder and NBI-'568 in schizophrenia. A Phase I study for NBIP-1435, a new biological compound, was also launched.
Negative Updates
Valbenazine Study Results
Valbenazine did not meet the primary endpoint in the Phase III study for the adjunctive treatment of schizophrenia, although some positive signals were observed.
Pricing Pressure
Net price for INGREZZA is expected to decline by approximately 5% for the year, primarily due to contracting and rebate agreements.
Company Guidance
In the second quarter of 2025, Neurocrine Biosciences reported strong financial performance with $682 million in net product sales, reflecting a 17% year-over-year growth. The company highlighted its success in driving double-digit growth, particularly through its products INGREZZA and CRENESSITY. INGREZZA achieved $624 million in sales for the quarter, supported by strategic investments in payer access, which resulted in a record number of new patient starts and increased market share. Meanwhile, CRENESSITY's early performance exceeded expectations, growing from $15 million in Q1 2025 to $53 million in Q2 2025, with over 75% of prescriptions being reimbursed. The strong product profile and high unmet needs in the classical congenital adrenal hyperplasia community have positioned CRENESSITY as a potential blockbuster. Looking ahead, Neurocrine has adjusted its INGREZZA net sales guidance to a range of $2.5 billion to $2.55 billion for 2025, while continuing to invest in its diversified neuroscience pipeline, including multiple Phase III programs. The company maintains a robust balance sheet with $1.8 billion in cash, supporting its growth and strategic initiatives.

Neurocrine Financial Statement Overview

Summary
Neurocrine Biosciences demonstrates strong financial performance with robust revenue growth and high gross profit margins. The balance sheet is solid with low leverage and strong equity positions. Cash flow is consistently positive, supporting operational flexibility. However, attention to increasing operational expenses and debt is necessary.
Income Statement
85
Very Positive
The company has shown a robust revenue growth trajectory, with a 33% increase from 2023 to 2024 and a 6.5% increase in TTM compared to 2024. Gross profit margins remain high, consistently above 98%, indicating efficient cost management. However, EBIT and EBITDA margins show some decline in TTM, suggesting increasing operational expenses. Despite this, net profit margins have remained stable, showcasing good bottom-line management.
Balance Sheet
78
Positive
The balance sheet is strong, with a low debt-to-equity ratio of 0.16 in the TTM period, reflecting prudent leverage management. ROE is healthy at 12.9% for TTM, indicating effective use of equity capital. The equity ratio at 69.2% suggests solid equity financing. However, the slight increase in total debt over the periods could be a future concern if it continues.
Cash Flow
80
Positive
Cash flow performance is solid, with consistent free cash flow generation and a stable free cash flow to net income ratio, indicating strong cash earnings quality. Operating cash flow covers net income comfortably in TTM, demonstrating effective cash management. However, slight volatility in free cash flow growth could suggest room for improvement in managing capital expenditures.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.51B2.36B1.89B1.49B1.13B1.05B
Gross Profit2.47B2.32B1.85B1.47B1.12B1.04B
EBITDA557.20M639.70M416.10M264.60M138.10M148.10M
Net Income348.30M341.30M249.70M154.50M89.60M407.30M
Balance Sheet
Total Assets3.89B3.72B3.25B2.37B2.07B1.73B
Cash, Cash Equivalents and Short-Term Investments975.60M1.08B1.03B989.30M711.30M801.00M
Total Debt439.10M455.10M428.40M262.90M440.40M412.30M
Total Liabilities1.20B1.13B1.02B660.90M698.50M608.50M
Stockholders Equity2.69B2.59B2.23B1.71B1.37B1.13B
Cash Flow
Free Cash Flow528.70M557.20M361.60M322.90M233.10M217.60M
Operating Cash Flow567.30M595.40M389.90M339.40M256.50M228.50M
Investing Cash Flow-58.40M-126.80M-467.10M-177.10M-130.20M4.10M
Financing Cash Flow-384.80M-486.70M65.30M-234.30M27.40M-157.80M

Neurocrine Technical Analysis

Technical Analysis Sentiment
Positive
Last Price140.40
Price Trends
50DMA
132.01
Positive
100DMA
124.24
Positive
200DMA
124.70
Positive
Market Momentum
MACD
2.53
Negative
RSI
61.96
Neutral
STOCH
66.41
Neutral
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 140.4 is above the 20-day moving average (MA) of 133.76, above the 50-day MA of 132.01, and above the 200-day MA of 124.70, indicating a bullish trend. The MACD of 2.53 indicates Negative momentum. The RSI at 61.96 is Neutral, neither overbought nor oversold. The STOCH value of 66.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NBIX.

Neurocrine Risk Analysis

Neurocrine disclosed 45 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 (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$14.08B40.1813.39%18.42%1.47%
75
Outperform
$11.90B17.6617.48%0.65%13.13%-0.47%
68
Neutral
$1.43B11.0018.32%1.37%-18.10%
61
Neutral
$1.22B-15.57%2.25%-301.59%
59
Neutral
$12.31B-19.77%4.65%-7.47%-438.39%
58
Neutral
$21.49B-2.31%2.43%64.37%
51
Neutral
$7.91B-0.36-41.71%2.23%23.45%-1.86%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NBIX
Neurocrine
140.40
20.23
16.83%
RDY
Dr Reddy's Laboratories
14.15
-1.61
-10.22%
VTRS
Viatris
10.33
-0.42
-3.91%
PCRX
Pacira Pharmaceuticals
26.73
12.88
93.00%
TEVA
Teva Pharmaceutical
18.48
0.40
2.21%
AMPH
Amphastar Pharmaceuticals
29.19
-16.19
-35.68%

Neurocrine Corporate Events

Executive/Board Changes
Neurocrine Announces Leadership Transition with New CMO
Neutral
May 30, 2025

Neurocrine has announced a leadership transition with Sanjay Keswani, M.D. set to succeed Eiry W. Roberts, M.D. as Chief Medical Officer effective June 2, 2025. Dr. Roberts, who has served in the role for seven years, will continue with the company as a Strategic Advisor to the CEO until the end of 2025. The transition involves an amended employment agreement for Dr. Roberts, maintaining her salary and bonus eligibility while ensuring her equity awards continue to vest.

Executive/Board ChangesShareholder Meetings
Neurocrine Holds Annual Meeting, Approves Key Matters
Neutral
May 22, 2025

On May 21, 2025, Neurocrine held its Annual Meeting where stockholders voted on several key matters. The election of four Class II Directors was confirmed, and the compensation for named executive officers was approved. Additionally, the 2025 Plan and the Amended and Restated ESPP were sanctioned, and Ernst & Young LLP’s appointment as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 19, 2025