As biotechs go, Neurocrine (NBIX)
has always been a little different - management is methodical,
relatively conservative, and not very promotional. Instead of steadily
churning out low-probability drug candidates, the company is careful
about what it puts into human studies and management puts in the extra
work to lay the groundwork for long-term commercial success. While that
can lead to some frustration with what looks like a relatively thin
pipeline (a complaint I've had from time to time), Neurocrine seems to
understand what goes into developing successful drugs, as seen with the
ongoing success of Ingrezza in tardive dyskinesia (or TD).
The
biotech space has become more volatile lately, but I continue to see
value in Neurocrine shares below $100. Ingrezza makes up more than 60%
of my fair value estimate, with most of that coming from the
already-approved and marketed TD indication, but elagolix should see FDA
approval this year and investors will soon learn if the company's drug
for CAH has a future.
Neurocrine Reaping The Benefits Of A Methodical Approach
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