Teva’s CP trial failure may add some risk for Neurocrine, says RBC Capital

RBC Capital notes that the clinicaltrials.gov listing for an open-label study of Teva‘s (TEVA) Austedo in cerebral palsy was just updated to indicate that it has been terminated as the main phase 3 study for that drug in cerebral palsy had failed. The analyst also points out that Neurocrine (NBIX), as part of its life cycle strategy, has been conducting phase 3 studies for Ingrezza in additional indications beyond TD and Huntington’s, namely schizophrenia and cerebral palsy, and said that Austedo, which is on the market for TD and Huntington’s, "has a nearly identical mechanism to Ingrezza." Teva’s study failure could increase the risk for Neurocrine’s cerebral palsy trial and may add incremental risk to the CP indication for Neurocrine, though the latter’s recent trial adjustments "could still preserve some potential" for it to succeed in phase 3, said the firm, which maintains a Sector Perform rating and $110 price target on Neurocrine shares.