The only biotechs that never report bad news are those lucky enough
to be acquired early in their corporate lives or those run by inveterate
liars that always manage to see "positive signals" in clinical data
trainwrecks. Neurocrine Biosciences (NASDAQ:NBIX)
has certainly had a few challenges in its past, but the news late
Monday of a halt to the congenital adrenal hyperplasia program is really
not the sort of news that should upset investors.
I do expect
that some will regard this as an excuse to sell what has been a pretty
strong stock (sometimes even professional investors need permission to
dismount a winning horse). I also do acknowledge that Neurocrine needs
to show a better track record of generating viable clinical candidates
from its base R&D activities. All of that said, at most this looks
like a $2 event to me and not a very good reason to exit a position
ahead of far more significant data on its two lead programs later this
year.
Click this link to continue:
A Small Stumble For Neurocrine Biosciences Changes Little
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