Neurocrine(NBIX) - 2025 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Neurocrine's total product sales grew to over $2.8 billion in 2025, representing a 22% year-over-year growth, driven by INGREZZA and the successful launch of CRENESSITY [11][12] - INGREZZA generated over $2.5 billion in revenue, up 9% year-over-year, with expectations of sales in the range of $2.7-$2.8 billion in 2026, reflecting approximately 10% growth [11][12] - The company's cash position increased by approximately $700 million, from $1.8 billion at the end of 2024 to $2.5 billion at the end of 2025, indicating strong operating performance [14] Business Line Data and Key Metrics Changes - INGREZZA's performance continues to impress, with record levels of new and total prescriptions, supported by strategic investments in access and Salesforce expansion [5][11] - CRENESSITY achieved over $300 million in net product sales in its first full year, capturing approximately 10% of the classic congenital adrenal hyperplasia patient population [12][13] - The company expects double-digit volume-driven growth for INGREZZA in 2026, supported by continued demand from patients not currently taking a VMAT2 inhibitor [6][11] Market Data and Key Metrics Changes - Neurocrine estimates that only about 10% of the prevalent tardive dyskinesia (TD) population is currently taking a VMAT2 inhibitor, indicating substantial growth opportunities [23] - The company has reached approximately 10% of the classic CAH population on therapy in the first year, with a focus on expanding beyond the endocrinology prescriber base [22][82] Company Strategy and Development Direction - Neurocrine aims to lead the VMAT2 category by leveraging its experience with INGREZZA and advancing next-generation VMAT2 inhibitors [8] - The company is focused on maximizing its evolving pipeline, with late-stage programs in neuropsychiatry and ongoing investments in R&D and Salesforce expansion [9][15] - Neurocrine plans to deliver one new medicine every two years at steady state, with a strong pipeline and a commitment to patient and shareholder value [10][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong foundation and momentum entering 2026, with expectations for continued growth and successful execution of strategies [5][10] - The management team highlighted the importance of ongoing education for prescribers and patients to drive adoption of CRENESSITY and improve treatment outcomes [88] - There is optimism regarding the potential for CRENESSITY to become a second blockbuster product, similar to INGREZZA, as the company continues to learn from the market dynamics [17][19] Other Important Information - The company is expanding its Salesforce for CRENESSITY to deepen engagement with existing prescribers and reach new potential prescribers [20][77] - Neurocrine is leveraging AI and technology tools to identify and engage providers likely to care for classic CAH patients, enhancing its market reach [21][83] Q&A Session Summary Question: Insights on CRENESSITY's early performance and revenue expectations - Management anticipates steady new patient additions each quarter for CRENESSITY, with a strong growth outlook for year two [34] Question: Implications of receptor occupancy data for INGREZZA - The data showed INGREZZA's superior efficacy compared to Austedo XR, which will inform the development of next-generation VMAT2 inhibitors [38] Question: Patient dynamics and potential seasonality for CRENESSITY - Management noted that it is too early to determine seasonality effects, emphasizing the need for further data collection [44] Question: R&D expense increases and their components - The increase in R&D expenses is primarily due to ongoing phase 3 trials, with minimal investment in earlier-stage programs like obesity [47] Question: Barriers to further adoption of CRENESSITY - The main barrier is a lack of knowledge among endocrinologists about classic CAH and the benefits of CRENESSITY, which the company is addressing through educational efforts [86]