Neurocrine Biosciences Smacked On Rising Expectations And Fraying Nerves

The last few months have not been kind to Neurocrine Biosciences (NBIX). The last three months have seen the stock double the roughly 11% pullback in the Nasdaq Biotechnology Index, with the last month being particularly brutal (a 22% drop versus a 7.5% drop). Although sales of Neurocrine’s lead drug continue to develop nicely, the scale of outperformance is shrinking. At the same time, the company has a major make-or-break data release on the way, and investors have also had to contend with some concerns about growing adverse event reports.

My view is that Neurocrine has largely been a victim of its own success and sharp deterioration in sentiment for biotech. Although I can understand some investors want to lighten up ahead of the Tourette’s data, I believe the worries about the rising number deaths in patients taking Ingrezza are overheated. Although I do see the Ingrezza pediatric Tourette’s read-out as a risky event, I still believe these shares are undervalued whichever way that update goes.

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Neurocrine Biosciences Smacked On Rising Expectations And Fraying Nerves