Wednesday, November 11, 2015

Seeking Alpha: Neurocrine Biosciences Has The Flash And The Cash

It wasn't all that long ago that I last updated my thoughts on Neurocrine Biosciences (NASDAQ:NBIX), but the company has made a few noteworthy moves since then that are worth mentioning. Neurocrine remains a very promising biotech on multiple levels. First, the company has two late-stage compounds that each have more than $1 billion in revenue potential. Second, the company has recently shown that it can, in fact, add new compounds to its pipeline. Third, the company has quite a bit of cash on hand, ending the last quarter with nearly half a billion dollars. Last and not least, there remain multiple upcoming events that can attract attention and drive positive sentiment.

The "but" is valuation. It's hard to recommend any development-stage biotech unless the potential gains are such that it's worth overlooking the industry's generally poor track record (most biotechs never develop a commercial product). I do think that Neurocrine is undervalued, and my underlying assumptions may prove conservative, but investors may want to hope for another biotech sector freakout that could push the price down 20% or more.

Read more here:
Neurocrine Biosciences Has The Flash And The Cash

No comments: