Neurocrine Biosciences Q3 2024 Financial Results and Increased INGREZZA Sales Forecast

Neurocrine Biosciences, a biopharmaceutical company based in San Diego, reported its financial outcomes for the third quarter of 2024, ending on September 30. The company highlighted significant developments and updated its financial outlook for the year.

INGREZZA® (valbenazine), Neurocrine’s flagship product for treating tardive dyskinesia and Huntington's disease chorea, achieved net sales of $613 million in the third quarter, marking a 26% increase compared to the same period in 2023. The growth is attributed to consistent patient demand and better gross-to-net dynamics. Following this strong performance, Neurocrine raised its 2024 net sales guidance for INGREZZA to between $2.30 billion and $2.32 billion.

In addition to the robust sales figures, Neurocrine's Board of Directors has approved a $300 million share repurchase plan, reflecting their confidence in the company's potential for value creation. The repurchase plan aims to sustain growth while investing in INGREZZA and preparing for the anticipated launch of crinecerfont, a treatment under FDA Priority Review for congenital adrenal hyperplasia.

Financially, Neurocrine reported a GAAP net income of $130 million, or $1.24 per share, in the third quarter of 2024, compared to $83 million, or $0.82 per share, in the same quarter of the previous year. On a non-GAAP basis, the company posted a net income of $189 million, or $1.81 per share, up from $156 million, or $1.54 per share, in the third quarter of 2023. The increase in net income is driven by higher sales of INGREZZA and improved operating margins.

The company's research and development (R&D) expenses rose due to investments in expanding their portfolio, including muscarinic compounds, gene therapy programs, and second-generation VMAT2 inhibitors. Notably, the third quarter R&D expenses included $39 million related to development milestones with partners Nxera Pharma UK Limited and Voyager Therapeutics, Inc. Additionally, selling, general, and administrative (SG&A) expenses increased, reflecting investments in crinecerfont-related activities and the expansion of sales teams.

As of September 30, 2024, Neurocrine had $1.9 billion in cash, cash equivalents, and marketable securities, providing a solid financial foundation for future initiatives.

Recent developments include the appointment of Kyle W. Gano, Ph.D., as Chief Executive Officer, effective October 11, 2024. The company also announced positive results from a Phase 2 study of NBI-1117568, an investigational treatment for schizophrenia, which triggered a $35 million milestone payment to Nxera. Preparations are underway to advance this compound into Phase 3 development in the first half of 2025.

Furthermore, Neurocrine presented interim data from the KINECT-HD2 study at the 2024 MDS International Congress. The data demonstrated significant and sustained improvements in Huntington's disease chorea. Conversely, the ERUDITE™ Phase 2 study of luvadaxistat in cognitive impairment associated with schizophrenia did not meet its primary endpoint. Consequently, Neurocrine plans to terminate its license agreement with Takeda Pharmaceutical Company Limited, effective April 2025. Similarly, the agreement with Idorsia Pharmaceuticals Ltd. for the development of NBI-827104 in epileptic encephalopathy will also terminate in January 2025.

In summary, Neurocrine Biosciences demonstrated strong financial performance in the third quarter of 2024, driven by the growth of INGREZZA. The company's strategic investments and financial health position it well for sustained growth and innovation in the neuroscience field.