On Monday, Piper Sandler affirmed a positive stance on Neurocrine (NASDAQ:NBIX) Biosciences (NASDAQ:NBIX), maintaining an Overweight rating with a price target of $160.00. This comes in light of the recent commercial launch of Crenessity (crinecerfont) for congenital adrenal hyperplasia (CAH), a rare endocrine disorder. The analyst noted that the pricing for Crenessity has been set, with two tiers established, the higher of which includes adults, adolescents, and a significant portion of pediatric patients.
The pricing strategy for Crenessity, although considered high, is consistent with the market norms for novel treatments targeting rare or ultra-rare diseases. The firm's analysis suggests that these price points are not extraordinary when compared to similar therapeutics in this specialized field.
Piper Sandler's continued confidence in Neurocrine Biosciences is bolstered by the expectation of Crenessity achieving peak U.S. sales in the range of $800 million to $1 billion. This projection is based on the drug's potential market performance and the established pricing structure.
The analyst's reiteration of the Overweight rating and the $160 price target reflects an optimistic outlook for Neurocrine Biosciences' financial growth, driven by the market introduction of Crenessity. The firm believes that the company's strategic pricing and the drug's market potential align well with their positive valuation of the stock.
Neurocrine Biosciences' focus on developing treatments for neurological and endocrine-related diseases, including the newly launched Crenessity, is a key factor in Piper Sandler's assessment. The firm's rating and price target are indicative of its expectations for the company's performance in the biopharmaceutical industry.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.