On Wednesday, Piper Sandler expressed continued confidence in shares of Neurocrine (NASDAQ:NBIX) Biosciences, reiterating an Overweight stock rating and a price target of $160.00. According to InvestingPro data, analysts maintain a strong bullish consensus on NBIX, with price targets ranging from $121 to $192, reflecting the market's optimistic outlook on the company's prospects.
The firm's analyst highlighted the promising feedback from a leading endocrinologist regarding Neurocrine's newly launched drug Crenessity, which is used to treat adult patients with congenital adrenal hyperplasia (CAH). The expert's insights, although based on a single opinion, suggest a broad application for Crenessity among adult patients with classic CAH.
The positive outlook is supported by additional feedback from endocrinologists, indicating a wide use for the drug in pediatric and adolescent patients as well. This information aligns with previous reports from Piper Sandler, including a survey dated November 13, 2024, and a detailed analysis from an expert call with pediatric endocrinologists on October 13, 2024.
The company's strong financial health is evident in its impressive 25.7% revenue growth over the last twelve months and robust gross profit margin of 68%.
Piper Sandler's analysis forecasts that the peak U.S. sales potential for Crenessity could realistically reach between $800 million and $1 billion. This projection underpins the firm's belief in a robust long-term EBITDA compound annual growth rate (CAGR) for Neurocrine Biosciences, anticipated to be at least in the high teens starting from 2025.
The analyst's reiteration of the Overweight rating and the $160 price target is a vote of confidence in the drug's market potential and Neurocrine Biosciences' financial outlook. This endorsement comes as a strong signal to investors about the company's growth trajectory and its recent developments in the biopharmaceutical market.
InvestingPro analysis suggests the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report, which provides deep-dive analysis of NBIX among 1,400+ top US stocks.
In other recent news, Neurocrine Biosciences has launched Crenessity, a novel treatment for congenital adrenal hyperplasia (CAH), in the United States. This development comes after the U.S. Food and Drug Administration's approval of the drug.
Despite this significant advancement, analysts from firms such as BMO (TSX:BMO) Capital anticipate a gradual commercial launch due to various challenges. However, Goldman Sachs (NYSE:GS) and H.C. Wainwright have maintained their Buy ratings on Neurocrine Biosciences, with Goldman Sachs increasing its price target for the company's shares to $182 from $177.
BofA Securities, reiterating its Buy rating, has projected fiscal year 2025 sales of $39.4 million for Crenessity, with peak risk-adjusted global sales reaching $1.2 billion by 2034.
These recent developments highlight Neurocrine Biosciences' commitment to developing effective treatments for neurological and endocrine-related diseases and disorders.
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