Teva's (TEVA) CRL is Positive for Neurocrine Bio. (NBIX) - Leerink

Leerink Partners analyst Paul Matteis said Teva's (NASDAQ: TEVA) CRL for SD-809 is positive for Neurocrine Bio. (NASDAQ: NBIX). The firm reiterated a Outperform rating and price target of $63 on NBIX.

Matteis commented, "Behind the CRL, FDA has asked TEVA (OP) to examine blood levels of certain metabolites of SD-809. The issue seems addressable and TEVA expects to respond to the CRL in 3Q16. However, for NBIX, we believe the news represents a positive: as NBIX's Valbenazine is a new chemical entity, we do not see any direct readthrough to the company's impending NDA filing, while the CRL for TEVA represents a delay for a potential competitor. Although the SD-809 NDA was for the treatment of Huntington's Chorea, investors expected '809 to also garner some off-label use in Tardive Dyskinesia (TD), which would have represented a potential headwind for Valbenazine - making it effective the second (or third, if you include tetrabenazine) VMAT2 to market in TD"

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 $46.19 yesterday.

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