Release Date: October 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Neurocrine Biosciences Inc (NBIX, Financial) reported strong Q3 sales of $113 million, reflecting a 25% year-over-year growth, driven by continued patient demand.
- The company has authorized a $300 million share repurchase plan, indicating confidence in its valuation and future growth prospects.
- Neurocrine Biosciences Inc (NBIX) is well-positioned with a robust neuroscience-focused pipeline, including potential blockbuster crinecerfont, which is on track for regulatory approval by year-end.
- The company has completed its psychiatry and long-term care sales force expansion, expected to drive further growth in the first half of next year.
- Neurocrine Biosciences Inc (NBIX) is advancing two major Phase 3 programs in major depressive disorder and schizophrenia, with significant progress in its pipeline.
Negative Points
- Despite strong sales, the tardive dyskinesia market remains largely untapped, with 85% of patients not yet receiving a VMAT2 inhibitor.
- The company is facing potential delays in reimbursement for crinecerfont due to new-to-market blocks by commercial payers, which could impact early sales.
- Neurocrine Biosciences Inc (NBIX) has decided to de-prioritize certain programs, reflecting the inherent risks and challenges in drug development.
- The competitive landscape in the tardive dyskinesia market is intensifying, with Teva's XR formulation contributing to market growth.
- The company anticipates an increase in R&D spending, which may impact short-term profitability as it invests in its pipeline.
Q & A Highlights
Q: Can you provide an update on the next-generation VMAT2 inhibitor and its development timeline?
A: Kyle W Gano, CEO: The follow-on compound is in Phase 1, aiming for a more potent version suitable for all current indications and potentially a long-acting injectable. We plan to move into patient trials next year, pending Phase 1 data review.
Q: How does Neurocrine view its business development strategy, particularly regarding potential acquisitions or partnerships?
A: Kyle W Gano, CEO: We are not in a rush to make acquisitions, whether large or small. Our current portfolio is robust, with several late-stage investments. We are focused on executing our existing pipeline and will consider opportunities that align with our expertise and infrastructure.
Q: What are the pricing strategies for Ingrezza, especially in light of potential IRA negotiations?
A: Eric Benevich, Chief Commercial Officer: We expect net revenue per script to remain similar to 2024 levels. We continuously assess our contracting strategies to maintain excellent access, with over 80% of lives covered and most patients paying $10 or less.
Q: Can you elaborate on the potential of NBI-568 for indications beyond schizophrenia?
A: Eiry W Roberts, Chief Medical Officer: We are advancing NBI-568 into Phase 3 for schizophrenia, with potential exploration in other areas like bipolar disorder. The molecule's selective agonism offers a promising benefit-risk profile.
Q: How is Neurocrine preparing for the launch of crinecerfont, and what are the expected challenges?
A: Eric Benevich, Chief Commercial Officer: We are building a foundation with disease state education and plan to offer a free goods program during initial reimbursement adjudication. While commercial payers may delay reimbursement, we are adept at managing such situations.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
