Positive Feedback On Neurocrine Bio's (NBIX) Valbenazine - Jefferies

Jefferies analyst, Biren Amin, hosted an investor event with a movement disorder specialist ahead of the AAN meeting next month where Neurocrine Bio. (NASDAQ: NBIX) KINECT 3 data will be presented in full detail. The specialist thinks that NBIX's valbenazine and Teva's deutetrabenazine are largely similarly w/ incremental advantage to valbenazine based on its clinical profile and expects both drugs will be adopted over Xenazine/generics in tardive dyskinesia/Tourettes. No change to Buy rating or $60 PT.

Novel VMAT2 inhibitors are approaching the market. NBIX and Teva (TEVA; Buy $54.29) have taken different approaches in developing their respective VMAT2 inhibitors. The first on the market is Teva's deutetrabenazine for Huntington's chorea w/ a PDUFA in May 2016. Our KOL expects approval, however, believes that TEVA may price deutetrabenazine similar to generic tetrabenazine (approved only for Huntington's chorea) which is priced at approximately $7,500/month but expects TEVA may be forced to lower the price for the tardive dyskinesia/Tourette's markets. Insurers will likely institute step edits and prior auth in Huntington's.

Both drugs offer safety advantages to Tetrabenazine. The specialist believes that both valbenazine and deutetrabenazine have advantages over tetrabenazine. First, both drugs are more infrequently delivered on a daily basis and could improve compliance. Second, the adverse event profile appears better than tetrabenazine. Tetrabenazine is known to cause sedation/somnolence (28%), insomnia (22%), depression (19%), akathisia (19%), extrapyramidal events (15%).

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 $35.33 yesterday.

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