Neurocrine Further Expands Its Pipeline With An Early-Stage Deal

Neurocrine Biosciences (NBIX) management has been clear that they want to reinvest the company’s growing financial resources into expanding the clinical pipeline and, eventually, the business. This has been more than just talk, with multiple deals (Idorsia (OTCPK:IDRSF), Xenon (XENE), Voyager (VYGR), Jnana) since October of 2018 that have meaningfully expanded the company’s pipeline and R&D efforts.

The latest announcement, a multi-drug R&D partnership with Takeda (TAK), is more of the same, with this partnership adding more than a half-dozen potential drugs in new therapeutic areas for the company. While the assets that Neurocrine is acquiring are higher-risk (depression and schizophrenia drugs have below-average odds of clinical and commercial success), the market opportunities are large, and the clinical assets do target some appealing underserved market opportunities.

The early stage of development limits the near-term value creation from this deal, but clinical and commercial success for one or more of the included drugs would make a meaningful contribution to Neurocrine’s future value.

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Neurocrine Further Expands Its Pipeline With An Early-Stage Deal