Neurocrine’s third-quarter financial results didn’t just impress, they blew everybody away.
Neurocrine Biosciences’s third-quarter financial results didn’t just impress, they blew everybody away. And the company’s stock is responding accordingly.
The key figure is sales of Ingrezza, which was recently approved by the U.S. Food and Drug Administration (FDA) for tardive dyskinesia (TD), a nervous system condition that results in uncontrollable stiff and jerky movements in the body and face, usually caused by long-term use of psychiatric medications. Prior to the approval, there were no treatments.
Paul Matties, an analyst with Leerink, originally projected that Ingrezza sales would hit $13.1 million in the third quarter. Neurocrine instead reported a dazzling $45.8 million in sales for the quarter, making up a considerable chunk of the company’s total $60.8 million for that period.
The drug went on sale on May 1, 2017. Net sales for the nine-month period were $52.1 million. Otherwise, in the third quarter, Neurocrine reported a net loss of $11.1 million, or $0.13 per share, compared to a net loss of $36.9 million or $0.43 loss per share for the same period in 2016. For the nine-month period, Neurocrine reported a net loss of $149.4 million or a loss of $1.70 per share.
“We are very pleased with the positive impact Ingrezza is having on patients suffering from tardive dyskinesia and the strength of our initial product launch,” Kevin Gorman, Neurocrine’s chief executive officer, said in a statement. “Prescriber use of Ingrezza for treating tardive dyskinesia is continuing to rapidly expand across both psychiatrists and neurologists as disease state and brand awareness broadens. We have also made great strides in R&D with elagolix being granted priority review status by the FDA for endometriosis, the initiation of a Phase IIb study of Ingrezza in pediatric patients with Tourette’s and Ingrezza commencing pivotal studies in Asia.”
As a result of the unexpected good news regarding Ingrezza sales, company shares jumped 20 percent. Shares are currently trading for $72.78.
It has also led to some speculation on whether Neurocrine will be a takeover target. The closest competitor to Ingrezza is Teva Pharmaceutical Industries (TEVA)’ Austedo, which was recently approved for Huntington’s disease, but is being evaluated for TD as well. For Huntington’s, Austedo is priced at about $60,000 for a year’s supply. Neurocrine intentionally priced Ingrezza to be competitive with Austedo. Ingrezza costs $5,275 for a 30-pill bottle (once daily), resulting in an annual cost of $63,300 for patients.
Earlier this year, Gorman told Endpoints News’ Brittany Meiling that Endocrine wasn’t pursuing a sale. “I’ve been in this business for 30 years now, and my definition of success has never changed: Get into a position where you are a freestanding, independent biotech company that discovers, develops, and commercializes your own drugs. That way, you don’t have to depend on anyone else.”
But with a hot drug in an area of unmet medical need, and a promising drug for endometriosis in the pipeline, companies might be taking a closer look.
