On Thursday, BMO Capital Markets adjusted its stock price target for Neurocrine (NASDAQ:NBIX) Biosciences (NASDAQ:NBIX), increasing it to $121 from the previous $114, while maintaining a Market Perform rating on the stock. The modification follows Neurocrine's third-quarter 2024 results, which indicated steady advancements for its drug Ingrezza.
The analyst noted that the positive market reaction, which saw the stock rise by 7%, was likely influenced by a more optimistic view based on the updated tardive dyskinesia (TD) epidemiology figures, now estimating 800,000 patients in the U.S. compared to the previous 600,000, as well as the drug's recent approval for treatment of Huntington's chorea.
Neurocrine's outlook towards the end of 2024 appears promising, particularly with the anticipated decision by the FDA on December 29 regarding the approval of crinecerfont for congenital adrenal hyperplasia (CAH).
The analyst projects that crinecerfont could achieve peak revenues of $600 million. This positive sentiment is further supported by the company's lack of updates on early-stage pipeline assets in high-risk neuropsychiatric indications, which are not expected until 2025.
The company's updated full-year 2024 guidance and the nearing commercialization of crinecerfont for CAH have been the driving forces behind the raised target price. The analyst's statement underscores the consistent progress in the company's portfolio and the potential for significant revenue growth with the upcoming PDUFA date.
Neurocrine Biosciences specializes in developing treatments for neurological and endocrine-related diseases and disorders. The company's progress in expanding its treatment offerings and addressing larger patient populations is reflected in the analyst's revised financial expectations and market performance outlook.
The market will continue to watch closely as the December 29 PDUFA date for crinecerfont approaches, which could mark a significant milestone for the company and its stakeholders.
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