Neurocrine Biosciences (NBIX) Receives Price Target Update from Jefferies Analysts, Anticipates Positive Results for NBI-568 Study
Jefferies recently raised its price target for Neurocrine Biosciences (NASDAQ: NBIX) to $189.00 from $177.00, maintaining a Buy rating. This adjustment comes ahead of the company's Phase 2 study results for NBI-568, a potential treatment for Schizophrenia.
The analyst at Jefferies is optimistic about the study's outcome, expecting NBI-568 to show efficacy comparable to existing treatments with a significant reduction in PANSS scores. The drug's high selectivity for the M4 receptor, favorable properties, and effective brain exposure contribute to this confidence.
Jefferies' financial forecast predicts $1.8 billion in risk-adjusted peak sales for NBI-568 in the Schizophrenia market, based on its potential to outperform current treatments like KarXT and Emraclidine.
The updated price target reflects Jefferies' positive outlook for Neurocrine Biosciences' future success, contingent on the successful development and commercialization of NBI-568. Investors are likely to react to this news as they await the study results.
In addition, Neurocrine Biosciences reported strong second-quarter sales growth for INGREZZA, leading to an increased sales guidance for the year. The company is also awaiting FDA approval for Crinecerfont and focusing on expanding its sales force and clinical pipeline.
InvestingPro Insights:
- Analysts are optimistic about Neurocrine Biosciences' financial prospects, with positive revisions to earnings and price targets.
- The company's strong operational performance is evident in its revenue growth and gross profit margin.
- NBIX is trading at a low P/E ratio relative to earnings growth, presenting a value investment opportunity.
- With a market cap of $14.64 billion, Neurocrine Biosciences is a significant player in the biotechnology sector.
In conclusion, Neurocrine Biosciences' potential success with NBI-568 could have a significant impact on its stock price and financial performance. Investors should pay attention to upcoming study results and consider the company's growth prospects in the biotechnology market.