Leerink Partners Raises Price target on Neurocrine Biosciences (NBIX) Following Positive KINECT3 Results
Leerink Partners reiterated an Outperform rating on Neurocrine Bio. (NASDAQ: NBIX), and raised the price target to $71.00 (from $67.00), following positive KINECT3 results. Analyst Paul Matteis We sees the likelihood of the emergence of an unexpected long-term safety signal as very low, but still possible given the patient population under surveillance.
Matteis commented, "On the heels of positive results from KINECT3 which we highlighted in our previous note earlier today (LINK), we are updating our model to reflect a higher probability-of success for NBI-98854 in Tardive Dyskinesia (TD). We now assume a 90% likelihood of approval, as with positive Phase II/Phase III results and Breakthrough Therapy Designation we see the only residual risk as the manifestation of an unexpected safety finding in KINECT4. Based on the breadth of data generated to date and MEDACorp specialist feedback, we see this as unlikely – '988 has shown no interaction with other CNS medications, and multiple KOLs with whom we spoke have extensive experience prescribing tetrabenazine (same mechanism) to their TD patients for years at a time. Meanwhile, we continue to view Tourette's as an early but unappreciated opportunity, which based on patient prevalence and unmet need could offer a peak opportunity that is of a similar magnitude of TD. Tourette's Phase I/II '988 data is the next catalyst in 4Q. Reiterate OP on NBIX. PT to $71 (from $67) on higher probability of '988 approval."
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Shares of Neurocrine Bio. closed at $38.93 yesterday.