On Tuesday morning (March 2), Neurocrine Biosciences (NBIX) announced that its Phase II INTERACT study of luvadaxistat (NBI-1065844), licensed from Takeda (TAK), had failed to achieve its primary endpoint. This was what I expected; as I'd previously written, while I gave a slim chance of success, the mechanism of action and past failures of other companies made it a long-shot in my view.
Luvadaxistat may still have a future, as the company intends to pursue further investigation of a successful secondary endpoint, but the failure doesn't really impact the valuation. The bigger hit is to sentiment, as Neurocrine investors don't really have a lot to look forward to from a clinical results standpoint this year, and better sales of Ingrezza and Ongentys is likely more of a second-half driver as vaccinations lead to relaxed COVID-19 restrictions and more in-person visits.
I continue to believe that Neurocrine is undervalued, though, and investors who can tolerate a catalyst-weak 2021 may yet be well-rewarded in the years to come.
Continue to the full article:
Neurocrine Biosciences' INTERACT Study Fails; Worse For Sentiment Than Value
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