Today's Spotlight BREAKING: Carvana, Comfort Systems, CRH To Join S&P 500 Neurocrine Biosciences (NBIX) is this week's Big Cap 20 pick to watch, as the drug stock is back inside a 5% buy zone from a recent entry. The biotech has a few flagship drugs. Among them are Crenessity, which treats classic congenital adrenal hyperplasia. It also has Ingrezza, a treatment for the movement disorders known as tardive dyskinesia and chorea,… MarketSurge Cyber Week Sale This week, save over 80% on MarketSurge—get 2 month ...

Alnylam Pharmaceuticals - Alnylam's market worth exceeded many large-cap drugmakers, indicating a challenging position due to high expectations from investors [1] - The company reported quarterly revenues of approximately $1.25 billion, surpassing analyst estimates by nearly $300 million, and boosted its financial forecasts [4] - Amvuttra generated $685 million in sales, exceeding the expected $622 million, indicating growing demand among patients with transthyretin amyloidosis [4] - Despite strong earnings, Alnylam shares fell nearly 7%, attributed to high share prices and elevated investor expectations [3] Biogen - Biogen's latest earnings report showed revenues just above $2.5 billion, narrowly exceeding Wall Street expectations [7] - The company’s aging multiple sclerosis drugs accounted for about 40% of total revenue, while new product launches showed muted performance [8] - Biogen revised its revenue forecast for the year to flat to up 1%, but lowered annual earnings per share estimates to $14.50 to $15 [9] Neurocrine Biosciences - Neurocrine reported a 28% year-over-year increase in net sales, totaling $785 million, but shares fell by 9% following the announcement [11] - The company plans to invest an additional $150 million in expanding sales teams, raising concerns about future margins [12] - Neurocrine received a civil investigative demand from the DOJ regarding Ingrezza, which may have unsettled investors despite a solid quarterly performance [13][14] Bristol Myers Squibb - Bristol Myers' earnings report was positive overall, but the performance of its schizophrenia drug Cobenfy was seen as underwhelming compared to other products [15][16] - Cobenfy sales reached $43 million in the third quarter, with ongoing trials testing its efficacy in treating Alzheimer's-related psychosis [18] - Despite uncertainties surrounding Cobenfy, Bristol Myers' shares rose 7% due to improved financial guidance and quarterly revenue performance [20]

Core Insights - Neurocrine Biosciences reported strong third-quarter sales, exceeding analyst expectations for both Ingrezza and Crenessity, with total sales reaching $790 million, a 28% increase year-over-year [5] - Ingrezza sales were $687 million, up 12% year-over-year, while Crenessity generated $98 million, significantly surpassing forecasts of $68 million [1][2] - Despite the strong performance, Neurocrine's stock faced pressure due to concerns over salesforce expansion, slow uptake of Crenessity, and ongoing investigations by the Department of Justice [3] Financial Performance - Total sales for Neurocrine Biosciences were $790 million, exceeding the projected $747 million, with adjusted earnings of $2.17 per share, beating forecasts by $0.10 [5] - The company reaffirmed its guidance for Ingrezza sales between $2.5 billion and $2.55 billion for the year, with analysts predicting $2.53 billion [5] Product Dynamics - Ingrezza is experiencing pricing pressure, with a projected 6% to 7% year-over-year decline in net pricing for the third and fourth quarters [6] - Crenessity's launch has been strong, with about 80% of insurers reimbursing for the drug, contributing to its sales success [10] - However, there was a sequential drop in new patient starts for Crenessity, with only 540 patients starting treatment in Q3, down from 644 in Q2 [11] Market Reactions - Neurocrine's stock fell over 2% to $143.76, currently resting at its 50-day moving average, despite a strong Composite Rating of 94, indicating it ranks in the top 6% of stocks based on fundamental and technical measures [4] - Analysts have mixed views, with some expressing confidence in the company's growth trajectory while others highlight potential risks related to pricing and market competition [3][9][12]

Group 1 - Neurocrine Biosciences, Inc. (NASDAQ:NBIX) is currently viewed as one of the best drug stocks to buy, with RBC Capital raising its price target to $149 from $144 while maintaining an Outperform rating [1] - The company's drug Crenessity is expected to continue its strong launch, exceeding Q3 consensus estimates, indicating positive prescription trends [2] - Analyst consensus for Neurocrine Biosciences is Strong Buy, with a median price target of $141.87, suggesting a potential upside of 19.83% from current levels [3] Group 2 - Neurocrine Biosciences focuses on neuroscience and is involved in the research, development, sale, and commercialization of pharmaceuticals for neuroendocrine, neurological, and neuropsychiatric disorders [4] - The company's product portfolio includes treatments for conditions such as chorea associated with Huntington's disease, tardive dyskinesia, classic congenital adrenal hyperplasia (CAH), and endometriosis and uterine fibroids [4]

Core Insights - Biotechnology stocks, with exceptions like Novo Nordisk and Eli Lilly, faced challenges in attracting investment capital in 2024 due to a high interest rate environment [1] - The FDA's cautious approach to drug approvals, particularly in breakthrough areas like gene therapy, has impacted large-cap drug companies [2] - The biotech industry is leveraging AI to enhance efficiencies and accelerate drug development, particularly in precision medicine [3] Company-Specific Insights - **Iovance Biotherapeutics**: Received FDA approval for Amtagvi, the first TIL therapy for solid tumors, transitioning from clinical stage to revenue generation. However, the stock is down 75.8% in 2025, with concerns over slow sales and cash burn projected at $300 million for the year [5][6][8] - **Neurocrine Biosciences**: Projecting revenue between $2.5 billion and $2.6 billion in 2025 from its Ingrezza therapy. The approval of Crenessity for congenital adrenal hyperplasia could boost revenue significantly, with peak U.S. sales estimated at $800 million to $1 billion [9][10][11] - **Viking Therapeutics**: Stock is down 33% as it awaits Phase 2 results for its GLP-1 candidate VK2735. The company faces competition from Eli Lilly and has significant short interest, but claims of durable weight loss could provide a competitive edge [13][14][15]

Core Insights - Neurocrine Biosciences Inc. reported better-than-expected first-quarter 2025 earnings, with adjusted EPS of 70 cents, surpassing the consensus estimate of 54 cents, but lower than the $1.20 reported a year ago [1] - The company reported sales of $572.6 million, an increase from $515.3 million a year ago, but missed the consensus of $559.3 million [1] Ingrezza Performance - Ingrezza's first-quarter 2025 net product sales were $545 million, reflecting an 8% year-over-year growth driven by strong patient demand and improved gross-to-net dynamics [2] - Neurocrine reaffirmed its 2025 Ingrezza sales guidance of $2.5 billion to $2.6 billion [3] Analyst Commentary - Analysts view Ingrezza as a leading treatment for tardive dyskinesia (TD), highlighting its once-daily dosing and lack of severe FDA warnings, along with 14 years of potential patent protection [4] - The positive performance of Crenessity indicates strong sales efforts, with early metrics showing significant interest in the orphan disease therapy [5] - Stock price for Neurocrine Biosciences increased by 14% to $125.07 following the earnings report [5] Analyst Ratings and Price Targets - Needham maintains a Buy rating, raising the price target from $138 to $139 [6] - Canaccord Genuity also maintains a Buy rating, increasing the price target from $158 to $160 [6] - UBS keeps a Buy rating, raising the price target from $137 to $152 [6] - BMO Capital maintains a Market Perform rating, increasing the price target from $96 to $115 [6] - Guggenheim maintains a Buy rating, raising the price target from $155 to $165 [6]