NBIX

Neurocrine Biosciences Inc

Healthcare


Presented:07/18/2017
Price:$47.37
Cap:$4.13B
Current Price:$117.34
Cap:$11.85B

Presented

Date07/18/2017
Price$47.37
Market Cap$4.13B
Ent Value$3.54B
P/E RatioN/A
Book Value$2.82
Div Yield0%
Shares O/S87.28M
Ave Daily Vol1,169,205
Short Int9.51%

Current

Price$117.34
Market Cap$11.85B
Neurocrine Biosciences, Inc. operates as a product based biopharmaceutical company. It discovers, develops and intends to commercialize drugs for the treatment of neurological and endocrine related diseases and disorders. The company was founded by Kevin C. Gorman and Wylie W. Vale on January, 1992 and is headquartered in San Diego, CA.

Publicly traded companies mentioned herein: AbbVie Inc (ABBV), Acadia Pharmaceuticals (ACAD), Neurocrine Biosciences (NBIX), Teva Pharmaceutical Industries (TEVA)

Highlights

The presenter is long shares of Neurocrine Biosciences (NBIX), which recently raised capital via a convertible offering (closed May 2, 2017) and now has ~$775mm to execute the launch of Ingrezza (valbenazine) for tardive dyskinesia (TD), as well as fund development programs in Tourette Syndrome and Parkinson’s, among others. In his opinion, the present value of NBIX shares (~$4bn market cap) only gives the company credit for Ingrezza, and Street forecasts for its launch and peak sales potential seem too low. In addition to TD, valbenazine is being studied for Tourette syndrome (Phase II) and NBIX has opicapone in Phase III for Parkinson’s and a partnership with AbbVie to develop elagolix for endometriosis and uterine fibroids (Phase III). To the extent management can execute the launch of Ingrezza, and the group agreed that NBIX’s team is “excellent”, the presenter believes there is a reasonable path to peak sales 50% north of the Street’s $1bn estimate and the stock to trade up to $70 (from $47).

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Idea Discussion

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