Neurocrine Biosciences said Tuesday its experimental drug could help lower steroid use for patients with a rare, adrenal disease. In response, NBIX stock surged to an eight-month high.
The biotech company tested its treatment, crinecerfont, in patients with congenital adrenal hyperplasia, or CAH. This disease impacts the adrenal glands, organs that produce hormones tied to stress, regulating sodium and potassium levels, and puberty.
Traditionally, managing CAH requires daily doses of steroid hormones called glucocorticoids and suppressing androgen hormones. Left unchecked, children with CAH could produce too much testosterone, leading to rapid growth and early puberty.
In Neurocrine's study, adults with CAH who took crinecerfont had a statistically significant decrease in their daily glucocorticoids dosage, while still keeping their androgen levels under control.
Now, the key question is whether crinecerfont will have an impact in children, says Wedbush analyst Laura Chico. The company expects to have its pediatric results in the fourth quarter. Once that happens, Neurocrine plans to ask for U.S. and European approvals in 2024.
The results sent NBIX stock 6.8% higher to 117.10. Shares gapped up to their highest point since January and are now making inroads to a buy point at 129.29 out of a consolidation on a weekly chart, according to MarketSmith.com.
NBIX Stock: Enthusiasm For Neurocrine's Pipeline
RBC Capital Markets analyst Brian Abrahams says the results should "help restore some enthusiasm around Neurocrine's pipeline prospects given recent setbacks."
But he expects a slower ramp for crinecerfont in CAH than the broader Street. In 2025 and 2026, he projects $63 million and $145 million in sales, respectively. In comparison, Wall Street predicts sales will hit $125 million to $185 million in 2025 and $228 million to $305 million the following year.
The study in children will be key, Abrahams said in a report. In that group of patients, Neurocrine will look for crinecerfont's impact on bone age and maturation and metabolic measures.
"We believe the pediatric/adolescent population could potentially benefit most from the drug," he said.
Abrahams kept his sector perform rating and 110 price target on NBIX stock.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
