Thursday, May 3, 2018

Neurocrine Reaping The Benefits Of A Methodical Approach

As biotechs go, Neurocrine (NBIX) has always been a little different - management is methodical, relatively conservative, and not very promotional. Instead of steadily churning out low-probability drug candidates, the company is careful about what it puts into human studies and management puts in the extra work to lay the groundwork for long-term commercial success. While that can lead to some frustration with what looks like a relatively thin pipeline (a complaint I've had from time to time), Neurocrine seems to understand what goes into developing successful drugs, as seen with the ongoing success of Ingrezza in tardive dyskinesia (or TD).

The biotech space has become more volatile lately, but I continue to see value in Neurocrine shares below $100. Ingrezza makes up more than 60% of my fair value estimate, with most of that coming from the already-approved and marketed TD indication, but elagolix should see FDA approval this year and investors will soon learn if the company's drug for CAH has a future.

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Neurocrine Reaping The Benefits Of A Methodical Approach

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