Neurocrine Biosciences, Inc. (NASDAQ:NBIX) stock has been on a roll over the course of the past two months and for a good reason. Around two months ago, the stock slumped to $75.11 per share, but since then, it has gone one a remarkable rally and recorded gains of as much as 50% up until Friday.
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Experts believe that despite the coronavirus crisis, this is a rally that might well continue, and hence, it could be worthwhile for investors to take a closer look at Neurocrine. Last week the company announced its financial results for the fiscal first quarter, and it proved to be a big boost for investors.
Revenues soared from $137.1 million in the prior-year period to $237.1 million, and naturally, investors were excited. On top of that Neurocrine managed to generate a net income of $37.1 million and grow its cash balance to $1 billion. The company’s Tardive dyskinesia product Ingrezza contributed as much as $231 million to the revenues.
It is the only daily use medicine for Tardive dyskinesia, and at this point, half a million people in the United States are affected by the condition. However, that is not all. Another product that is on the pipeline is Ongentys, which is meant for treating levodopa/carbidopa.
Ongentys showed promising signs in two Phase 3 trials. In addition to that, Neurocrine has also done well with regards to royalty payments. It earned $14.3 million in royalty payments last year by virtue of its partnership with AbbVie for the product Orilissa. It has also reached similar agreements with companies like Xenon Pharmaceuticals and Voyager Therapeutics. This Tuesday, the company announced an agreement for the development and sales of the product ACT-709478 with Idorsia Ltd. Neurocrine was paid $45 million upfront and stood to make money from royalties as well.
On the same day, the company’s Investigational New Drug Application for the product was accepted by the FDA as well. Considering the wide range of positive factors, Neurocrine has emerged as one of the promising options in the biotech space for those who are looking at a long term play.