Neurocrine Knocked Back On Ingrezza Concerns And Maybe The Lack Of A Buyout

Expectations can be irrational and still have power – that’s about the only reason I can see for why Neurocrine (NBIX) shares were as weak as they were coming out of the company’s JPMorgan Healthcare Conference presentation. Investors went into this conference with inflated expectations regarding biotech M&A, and it likely didn’t help matters any that Neurocrine management was once again cautious on sales guidance for Ingrezza in Q1’20.

Neurocrine is an interesting position now. The strong commercial success of Ingrezza is allowing the company to augment a so-so internal R&D effort with licensing deals that have brought the company some interesting opportunities in Parkinson’s and epilepsy, and the company’s congenital adrenal hyperplasia drug crinecerfont still appears to be underestimated in my view. With a fair value of over $130, I still see meaningful upside in these shares.

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Neurocrine Knocked Back On Ingrezza Concerns And Maybe The Lack Of A Buyout