Neurocrine Biosciences, Inc. (NBIX) Bundle
A Brief History of Neurocrine Biosciences, Inc.
Neurocrine Biosciences, Inc. (NASDAQ: NBIX) is a biopharmaceutical company focused on developing innovative therapies for neurological and endocrine disorders. Founded in 1992, the company has evolved significantly, particularly in recent years as it expanded its product portfolio and research capabilities.
Key Milestones
- 2017: Launched INGREZZA® (valbenazine), the first FDA-approved treatment for tardive dyskinesia, marking a significant entry into the market.
- 2023: Expanded the use of INGREZZA for the treatment of chorea associated with Huntington's disease.
- 2024: Achieved a major milestone with the successful completion of Phase 2 clinical studies for NBI-1117568 and prepared for Phase 3 development.
Financial Overview
As of September 30, 2024, Neurocrine reported total revenues of $622.1 million for the third quarter, with net product sales accounting for $616.6 million. This reflects a substantial increase from $491.8 million in net product sales for the same period in 2023.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Product Sales | $616.6 million | $491.8 million |
| Collaboration Revenues | $5.5 million | $7.0 million |
| Total Revenues | $622.1 million | $498.8 million |
| Net Income | $129.8 million | $83.1 million |
| Research and Development Expenses | $195.0 million | $142.2 million |
Stock Performance
As of September 30, 2024, Neurocrine's stock was trading at approximately $70.45 per share, reflecting a year-to-date increase of around 15%. The company has a market capitalization of approximately $7.1 billion.
Research and Development Focus
Neurocrine continues to invest heavily in R&D, with total expenses reaching $545.5 million for the first nine months of 2024, compared to $427.5 million for the same period in 2023. This investment supports ongoing projects, including clinical trials for multiple product candidates in various stages of development.
Recent Developments
In October 2024, Neurocrine announced a share repurchase program authorized by its Board of Directors, allowing for the repurchase of up to $300 million of its common stock. This move is aimed at enhancing shareholder value as the company continues to navigate the competitive landscape of biopharmaceuticals.
Cash and Liquidity Position
Neurocrine reported total cash, cash equivalents, and marketable securities of $1.87 billion as of September 30, 2024. The company has adequate liquidity to fund its operations and support its growth initiatives for the foreseeable future.
| Liquidity Metric | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Total Cash and Cash Equivalents | $349.1 million | $251.1 million |
| Total Current Assets | $1.88 billion | $1.61 billion |
| Total Current Liabilities | $429.7 million | $654.8 million |
| Total Working Capital | $1.45 billion | $952.2 million |
Leadership Changes
Kevin Gorman, Ph.D., retired as CEO effective October 11, 2024, and was succeeded by Kyle Gano, Ph.D., who was previously the Chief Business Development and Strategy Officer.
A Who Owns Neurocrine Biosciences, Inc. (NBIX)
Major Shareholders
As of 2024, Neurocrine Biosciences, Inc. (NBIX) has several key shareholders, including institutional investors and individual stakeholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Shares Owned (millions) |
|---|---|---|
| Vanguard Group, Inc. | 8.12% | 8.23 |
| BlackRock, Inc. | 7.98% | 8.09 |
| State Street Corporation | 5.49% | 5.56 |
| FMR LLC (Fidelity) | 5.30% | 5.37 |
| Geode Capital Management, LLC | 3.32% | 3.36 |
Institutional Ownership
Institutional ownership is substantial, reflecting a strong interest from large investment firms. The following table details the institutional ownership metrics for Neurocrine Biosciences as of September 30, 2024:
| Institution | Ownership Percentage | Shares Owned (millions) |
|---|---|---|
| Vanguard Group, Inc. | 8.12% | 8.23 |
| BlackRock, Inc. | 7.98% | 8.09 |
| State Street Corporation | 5.49% | 5.56 |
| FMR LLC (Fidelity) | 5.30% | 5.37 |
| Geode Capital Management, LLC | 3.32% | 3.36 |
| Other Institutions | 61.77% | 62.43 |
Executive Ownership
Executive ownership is also a significant factor in the company's ownership structure. The following table lists the key executives and their holdings:
| Executive | Title | Shares Owned (millions) |
|---|---|---|
| Kevin Gorman | CEO | 0.45 |
| Matthew L. McGowan | CFO | 0.25 |
| Jude Onyia | CSO | 0.20 |
| Other Executives | Various | 0.10 |
Recent Stock Performance
As of October 2024, the stock price of Neurocrine Biosciences (NBIX) is approximately $26.00 per share. The market capitalization stands at around $2.63 billion, based on 101.2 million shares outstanding. The following table provides a summary of recent stock performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $26.00 |
| Market Capitalization | $2.63 billion |
| 52-Week High | $36.00 |
| 52-Week Low | $22.00 |
| Year-to-Date Performance | -15% |
Shareholder Composition
The composition of shareholders includes a mix of institutional and retail investors. The following table illustrates the overall shareholder composition:
| Type of Shareholder | Percentage |
|---|---|
| Institutional Investors | 80% |
| Retail Investors | 20% |
Neurocrine Biosciences, Inc. (NBIX) Mission Statement
Neurocrine Biosciences, Inc. is dedicated to improving the lives of patients suffering from neurological, neuroendocrine, and neuropsychiatric disorders. The company's mission focuses on discovering and developing life-changing treatments for patients who have significant unmet medical needs.
Core Values
- Innovation: Commitment to advancing science and developing novel therapies.
- Patient-Centric: Prioritizing patient needs in all research and development efforts.
- Collaboration: Building strategic partnerships to enhance drug development.
- Integrity: Upholding high ethical standards in all operations.
Financial Overview
As of September 30, 2024, Neurocrine Biosciences reported a net income of $238.2 million for the nine months ended September 30, 2024, compared to $102.0 million for the same period in 2023. The increase in net income was primarily driven by strong sales of INGREZZA, the company's flagship product for tardive dyskinesia.
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Income | $129.8 million | $83.1 million | +56.5% |
| Total Revenues | $622.1 million | $498.8 million | +24.8% |
| Net Product Sales | $616.6 million | $491.8 million | +25.4% |
| Research and Development Expenses | $195.0 million | $142.2 million | +37.1% |
| Selling, General, and Administrative Expenses | $234.3 million | $204.2 million | +14.7% |
Product Portfolio
Neurocrine's product portfolio includes FDA-approved treatments and several compounds in various stages of clinical development. Key products include:
- INGREZZA (valbenazine): Approved for tardive dyskinesia, with net sales of $1.7 billion for the first nine months of 2024.
- ORILISSA (elagolix): Treatment for endometriosis, contributing to collaboration revenues.
- DYSVAL (valbenazine): Launched in Japan for tardive dyskinesia.
Recent Developments
In October 2024, Neurocrine's Board of Directors authorized a share repurchase program of up to $300 million of its common stock, indicating confidence in its financial position and future growth prospects.
Research and Development Focus
Neurocrine continues to invest heavily in research and development, with R&D expenses reaching $545.5 million for the nine months ending September 30, 2024. This investment supports multiple clinical trials aimed at expanding its therapeutic offerings.
| R&D Expenses by Category | Q3 2024 | Q3 2023 |
|---|---|---|
| Late Stage Development | $68.9 million | $82.2 million |
| Early Stage Development | $77.6 million | $77.9 million |
| Research and Discovery | $103.9 million | $74.9 million |
| Milestone Payments | $71.4 million | $0.3 million |
Market Position
Neurocrine is positioned as a leader in the treatment of neurological disorders, leveraging its innovative research capabilities and strategic partnerships to enhance its product pipeline and market reach.
Future Outlook
The company anticipates continued growth driven by ongoing clinical trials, product launches, and an expanding market for its existing therapies. The expected FDA decisions on new drug applications in late 2024 will also be critical for future revenue streams.
How Neurocrine Biosciences, Inc. (NBIX) Works
Company Overview
Neurocrine Biosciences, Inc. (NBIX) is a biopharmaceutical company focused on developing and commercializing innovative therapies for neurological and neuropsychiatric disorders. As of 2024, the company is recognized for its flagship product, INGREZZA (valbenazine), which is the first FDA-approved treatment for tardive dyskinesia.
Financial Performance
In the third quarter of 2024, Neurocrine reported total revenues of $622.1 million, a significant increase from $498.8 million in the same period of 2023. For the nine months ended September 30, 2024, total revenues reached $1.727 billion compared to $1.372 billion in 2023.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenues | $622.1 million | $498.8 million | $1.727 billion | $1.372 billion |
| Net Income | $129.8 million | $83.1 million | $238.2 million | $102.0 million |
| Earnings per Share (Diluted) | $1.24 | $0.82 | $2.29 | $1.01 |
Revenue Breakdown
The primary source of revenue for Neurocrine is from net product sales, particularly from INGREZZA. In the first nine months of 2024, INGREZZA net product sales amounted to $1.698 billion, representing approximately 99% of total net product sales.
| Product | Q3 2024 Sales | Q3 2023 Sales | 9M 2024 Sales | 9M 2023 Sales |
|---|---|---|---|---|
| INGREZZA | $612.9 million | $485.7 million | $1.698 billion | $1.335 billion |
| Other Products | $3.7 million | $6.1 million | $11.0 million | $17.6 million |
Operating Expenses
Operating expenses for the third quarter of 2024 totaled $438.3 million, compared to $357.6 million in the same quarter of 2023. For the first nine months of 2024, operating expenses were $1.299 billion compared to $1.271 billion in 2023.
| Expense Type | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Cost of Revenues | $8.0 million | $11.2 million | $24.7 million | $31.2 million |
| Research and Development | $195.0 million | $142.2 million | $545.5 million | $427.5 million |
| Selling, General, and Administrative | $234.3 million | $204.2 million | $719.4 million | $668.7 million |
Liquidity and Capital Resources
As of September 30, 2024, Neurocrine reported total cash, cash equivalents, and marketable securities of $1.872 billion, up from $1.719 billion at the end of 2023. The company's working capital stood at $1.447 billion, reflecting its solid liquidity position.
| Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Cash and Marketable Securities | $1.872 billion | $1.719 billion |
| Total Current Assets | $1.877 billion | $1.607 billion |
| Total Current Liabilities | $429.7 million | $654.8 million |
| Total Working Capital | $1.447 billion | $952.2 million |
Key Developments
In 2024, Neurocrine has made significant advancements in its product pipeline, including the successful completion of key clinical studies for its new drug candidates. The company also announced a share repurchase program authorized by its Board of Directors, allowing for the repurchase of up to $300 million of common stock.
Research and Development Investments
Neurocrine continues to invest heavily in research and development, with R&D expenses amounting to $195.0 million for Q3 2024, compared to $142.2 million in Q3 2023. For the first nine months, R&D expenses totaled $545.5 million, up from $427.5 million in the prior year.
| R&D Category | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Late Stage | $21.6 million | $24.2 million | $68.9 million | $82.2 million |
| Early Stage | $19.2 million | $25.4 million | $77.6 million | $77.9 million |
| Research and Discovery | $42.1 million | $28.4 million | $103.9 million | $74.9 million |
Market Position
Neurocrine Biosciences holds a strong market position in the treatment of neurological disorders, driven primarily by the commercial success of INGREZZA. The company aims to expand its portfolio through strategic partnerships and collaborations with other biopharmaceutical companies.
How Neurocrine Biosciences, Inc. (NBIX) Makes Money
Revenue Streams
Neurocrine Biosciences generates revenue primarily through net product sales and collaboration revenues.
| Revenue Source | Q3 2024 (in millions) | Q3 2023 (in millions) | YTD 2024 (in millions) | YTD 2023 (in millions) |
|---|---|---|---|---|
| Net Product Sales | 616.6 | 491.8 | 1,709.4 | 1,353.4 |
| Collaboration Revenues | 5.5 | 7.0 | 18.2 | 18.5 |
| Total Revenues | 622.1 | 498.8 | 1,727.6 | 1,371.9 |
Net Product Sales Breakdown
The majority of Neurocrine's revenue comes from its flagship product, INGREZZA (valbenazine), which treats tardive dyskinesia. INGREZZA accounted for approximately 99% of total net product sales.
| Product | Q3 2024 Sales (in millions) | Q3 2023 Sales (in millions) | YTD 2024 Sales (in millions) | YTD 2023 Sales (in millions) |
|---|---|---|---|---|
| INGREZZA | 612.9 | 485.7 | 1,698.4 | 1,335.8 |
| Other Products | 3.7 | 6.1 | 11.0 | 17.6 |
| Total Net Product Sales | 616.6 | 491.8 | 1,709.4 | 1,353.4 |
Collaboration Revenues
Collaboration revenues are derived from royalties on products developed in partnership with other companies, including:
- AbbVie: Royalties from elagolix (ORILISSA and ORIAHNN).
- Mitsubishi Tanabe Pharma Corporation: Royalties from DYSVAL (valbenazine).
Operating Expenses
Operating expenses for Neurocrine are categorized into three main areas: cost of revenues, research and development (R&D), and selling, general and administrative (SG&A) expenses.
| Expense Type | Q3 2024 (in millions) | Q3 2023 (in millions) | YTD 2024 (in millions) | YTD 2023 (in millions) |
|---|---|---|---|---|
| Cost of Revenues | 8.0 | 11.2 | 24.7 | 31.2 |
| Research and Development | 195.0 | 142.2 | 545.5 | 427.5 |
| Selling, General and Administrative | 234.3 | 204.2 | 719.4 | 668.7 |
| Total Operating Expenses | 438.3 | 357.6 | 1,299.1 | 1,271.3 |
Net Income
Net income for the company has shown significant growth, reflecting the increase in product sales and effective management of operating expenses.
| Period | Net Income (in millions) |
|---|---|
| Q3 2024 | 129.8 |
| Q3 2023 | 83.1 |
| YTD 2024 | 238.2 |
| YTD 2023 | 102.0 |
Cash Flow Analysis
The cash flow from operating activities has also increased, primarily driven by higher product sales.
| Cash Flow Type | YTD 2024 (in millions) | YTD 2023 (in millions) |
|---|---|---|
| Cash Flows from Operating Activities | 352.9 | 266.4 |
| Cash Flows from Investing Activities | (58.5) | (265.3) |
| Cash Flows from Financing Activities | (196.7) | 29.9 |
| Change in Cash | 98.0 | 31.0 |
Future Outlook
Neurocrine continues to focus on expanding its product portfolio and pursuing new collaborations that may enhance its revenue-generating capabilities while managing costs effectively.
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Article updated on 8 Nov 2024
Resources:
- Neurocrine Biosciences, Inc. (NBIX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Neurocrine Biosciences, Inc. (NBIX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Neurocrine Biosciences, Inc. (NBIX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.