Neurocrine Biosciences reported soaring fourth-quarter profit Monday and issued in-line guidance for its tardive dyskinesia treatment, Ingrezza. But NBIX stock toppled.
During the fourth quarter, Neurocrine's adjusted earnings rocketed 3,000% to $1.24 per share. Total revenue climbed 32% to $412 million. That included $399 million from Ingrezza. Ingrezza treats a condition in which patients experience uncontrolled movements of the face and torso.
The company also predicted $550 million to $580 million in operating expenses for 2023. That was higher than some projections and comes as Neurocrine works to gain approval for Ingrezza in patients with chorea due to Huntington's disease. Chorea is another movement disorder.
Neurocrine's step-up in spending "to support continued Ingrezza growth highlights importance of further leveraging infrastructure with some pipeline successes," RBC Capital Markets analyst Brian Abrahams said in a note to clients.
But on today's stock market, NBIX stock toppled 4.6% and closed at 105.02. Neurocrine shares have a strong Composite Rating of 94 out of a total 99, according to IBD Digital. This puts shares in the top 6% of all stocks in terms of fundamental and technical metrics.
NBIX Stock: Ingrezza Outlook Promising
Both sales and adjusted profit topped Wall Street's expectations in the fourth quarter. But Needham analyst Ami Fadia noted strict, as-reported earnings came in light at 88 cents a share.
For the year, Neurocrine expects Ingrezza to bring in $1.67 billion to $1.77 billion in sales. That likely includes a small contribution from its use for Huntington's disease. The Food and Drug Administration is set to make a decision on Ingrezza for the neurological disorder in August.
Mizuho Securities analyst Uy Ear says the midpoint of Neurocrine's outlook is above his estimate for $1.7 billion. The company expects price increases to contribute 3-4 points to year-over-year sales growth. So, the guidance suggests 16%-17% growth in volume of prescriptions, he said.
He maintained his neutral rating and 116 price target on NBIX stock.
Other analysts said Neurocrine's Ingrezza outlook was in line with their forecasts. Analysts polled by FactSet had expected roughly $1.72 billion from Ingrezza this year — meeting the midpoint of the company's guidance.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
