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Neurocrine(NBIX) - 2025 Q1 - Quarterly Report
NBIXNeurocrine(NBIX)2025-05-05 20:03
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Sales Performance - INGREZZA net product sales reached 545.2millioninQ12025,upfrom545.2 million in Q1 2025, up from 506.0 million in Q1 2024, reflecting strong patient demand and improved gross-to-net dynamics [97]. - CRENESSITY, launched in December 2024, generated 14.5millioninnetproductsalesforQ12025[93].−TotalnetproductsalesforQ12025were14.5 million in net product sales for Q1 2025 [93]. - Total net product sales for Q1 2025 were 563.7 million, compared to 509.0millioninQ12024,markinganincreaseofapproximately10.5509.0 million in Q1 2024, marking an increase of approximately 10.5% [97]. - Collaboration revenues increased to 8.9 million in Q1 2025 from 6.3millioninQ12024,primarilyduetohigherroyaltiesfromAbbVieandMTPC[98].Expenses−TotalresearchanddevelopmentexpensesforQ12025were6.3 million in Q1 2024, primarily due to higher royalties from AbbVie and MTPC [98]. Expenses - Total research and development expenses for Q1 2025 were 263.2 million, up from 159.4millioninQ12024,drivenbyincreasedinvestmentinlate−stageprograms[102].−Selling,general,andadministrativeexpensesroseto159.4 million in Q1 2024, driven by increased investment in late-stage programs [102]. - Selling, general, and administrative expenses rose to 276.5 million in Q1 2025 from 243.1millioninQ12024,reflectinginvestmentsinthecommercialorganization[110].−NetincomeforQ12025was243.1 million in Q1 2024, reflecting investments in the commercial organization [110]. - Net income for Q1 2025 was 7.9 million, a decrease from 43.4millioninQ12024,attributedtohigherdevelopmentmilestoneexpensesandincreasedoperationalcosts[113].ShareRepurchaseProgram−Thecompanyauthorizedanewsharerepurchaseprogramofupto43.4 million in Q1 2024, attributed to higher development milestone expenses and increased operational costs [113]. Share Repurchase Program - The company authorized a new share repurchase program of up to 500.0 million in February 2025, in addition to a completed 300.0millionrepurchaseprogram[95].−The2025RepurchaseProgramallowsfortherepurchaseofupto300.0 million repurchase program [95]. - The 2025 Repurchase Program allows for the repurchase of up to 500.0 million of common stock, in addition to the completed 300.0millionprogramfrom2024[123].−Cashflowsfromfinancingactivitiesincluded300.0 million program from 2024 [123]. - Cash flows from financing activities included 150.0 million in common stock repurchases under the 2025 Repurchase Program, with 350.0millionremainingavailableforfuturerepurchases[123].CashFlowandWorkingCapital−Totalcash,cashequivalents,andmarketablesecuritiesdecreasedfrom350.0 million remaining available for future repurchases [123]. Cash Flow and Working Capital - Total cash, cash equivalents, and marketable securities decreased from 1,815.6 million on December 31, 2024, to 1,758.8milliononMarch31,2025,adeclineofapproximately3.11,758.8 million on March 31, 2025, a decline of approximately 3.1% [115]. - Cash flows from operating activities fell significantly from 130.3 million in Q1 2024 to 64.8millioninQ12025,representingadecreaseofabout50.264.8 million in Q1 2025, representing a decrease of about 50.2% [116]. - Cash flows from investing activities showed a positive change of 14.2 million in Q1 2025, compared to a negative 55.0millioninQ12024[116].−Totalworkingcapitaldecreasedfrom55.0 million in Q1 2024 [116]. - Total working capital decreased from 1,217.0 million on December 31, 2024, to 1,115.0milliononMarch31,2025,areductionofapproximately8.41,115.0 million on March 31, 2025, a reduction of approximately 8.4% [115]. Clinical Development - The company initiated a Phase 3 clinical study for osavampator in major depressive disorder, incurring a 37.5 million milestone expense in Q1 2025 [100]. Future Commitments - The company has potential future payments of up to $14.8 billion related to existing collaboration and license agreements upon achieving certain milestones [121]. Investment Portfolio - The company maintains a diversified investment portfolio with low-risk, investment-grade debt securities, and a 1% unfavorable change in interest rates would not materially affect the fair value of this portfolio [125]. Operational Focus - The company is focused on expanding its commercial organization, including the psychiatry and long-term care sales team, which was completed in September 2024 [117]. - The company experienced an increase in accounts receivable due to timing impacts of customer orders and cash collections [117]. Regulatory Status - INGREZZA qualifies for the small biotech exception under the Medicare Drug Price Negotiation Program, providing exemption from selection until 2027 [95].