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Nomura Securities Starts Neurocrine Bio. (NBIX) at Buy

January 8, 2014 7:44 AM EST Send to a Friend
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Price: $13.78 -6.89%

Rating Summary:
    10 Buy, 1 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 23 | Down: 10 | New: 20
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Nomura Securities initiates coverage on Neurocrine Bio. (NASDAQ: NBIX) with a Buy. PT $23.00.

Analyst Ian Somaiya comments: "Neurocrine is focused on the development and commercialization of small molecule drugs for neurological and endocrine diseases. We expect positive Phase III data for lead drug elagolix for endometriosis (summer ‘14) combined with Phase IIb data for uterine fibroids (3Q14) to confirm the drug’s $2bn–3bn market opportunity and enable the shares to approach our $23 target price. We believe with positive results from the second Phase IIb study (KINECT-2) for ‘854 out of the way, investors can focused on elagolix’s blockbuster opportunity. We expect Neurocrine to start Phase III trials for ‘854 in 2014, with potential data in 2015, supporting peak sales of $700mn and our bull case DCF of $31 per share. Our $23 target price is based on DCF of 2015–2025E projected free cash flows discounted at 11% (WACC of 10.3%) with a 2% terminal growth rate. FY13E EPS at ($0.66); FY14E EPS at ($0.34)."

For an analyst ratings summary and ratings history on Neurocrine Bio. click here. For more ratings news on Neurocrine Bio. click here.

Shares of Neurocrine Bio. closed at $18.51 yesterday.




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