Neurocrine Biosciences ((NBIX)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Neurocrine Biosciences’ recent earnings call painted a picture of robust growth and strategic foresight. The company reported a strong quarter, marked by significant revenue growth and successful commercial performance of its key products, CRENESSITY and INGREZZA. Despite facing challenges such as the Inflation Reduction Act and a Department of Justice investigation, Neurocrine is proactively expanding its sales force and advancing its clinical pipeline, positioning itself for sustained future growth.
Record-Breaking Revenue and Growth
Neurocrine Biosciences reported an impressive $790 million in net product sales, reflecting a 28% year-over-year growth. This achievement was driven by the remarkable performance of its products, with CRENESSITY’s sales increasing from $53 million in Q2 to $98 million in Q3, and INGREZZA recording $687 million in net sales. This marks the third consecutive quarter of record new patient additions for INGREZZA.
Strong Commercial Performance of CRENESSITY
CRENESSITY has shown strong early adoption and persistency rates, with 540 new patients initiating therapy in Q3, bringing the total to over 1,600. Impressively, 80% of dispensed prescriptions are reimbursed, and the majority of patients pay $10 or less per month out of pocket, highlighting the product’s accessibility and market penetration.
Expansion of Sales Force
In response to its growing market presence, Neurocrine is expanding its sales force for both INGREZZA and CRENESSITY by approximately 30%. This strategic move aims to accelerate market development and maximize patient share, especially in light of potential market changes due to the Inflation Reduction Act.
Advancement in Clinical Programs
Neurocrine is making significant strides in its clinical programs, on track to meet its R&D productivity goals. The company has initiated four new Phase I studies and two new Phase II studies, with ongoing Phase III studies for osavampator in major depressive disorder and direclidine in schizophrenia continuing to enroll well.
IRA and Pricing Pressures
The potential impacts of the Inflation Reduction Act on pricing and new patient starts for INGREZZA were a point of concern. Neurocrine is planning to maximize patient share before 2027, when INGREZZA’s pricing could be affected, showcasing its proactive approach to market challenges.
DOJ Investigation
Neurocrine has received a Civil Investigative Demand from the Department of Justice regarding the sales, marketing, and promotion of INGREZZA. While this poses a risk, the company is cooperating fully with the investigation, demonstrating transparency and compliance.
Forward-Looking Guidance
During the earnings call, Neurocrine provided guidance that reflects its strong commercial performance and future growth strategies. The company plans further sales force expansion, anticipating an SG&A expense increase of around $150 million in 2026 to boost market development. Additionally, Neurocrine remains focused on advancing its R&D pipeline, with expectations to initiate several new studies, supporting its long-term growth trajectory.
In summary, Neurocrine Biosciences’ earnings call highlighted a quarter of strong financial performance and strategic initiatives aimed at sustaining growth. The company’s proactive measures in expanding its sales force and advancing its clinical pipeline, despite external challenges, underscore its commitment to maintaining its market leadership and driving future success.