Neurocrine Biosciences Inc. Message Board

That was an incredible call. This is reminding me of a young Celgene. Nothing to do here but buy, accumulate and hold.

I'll give you a bunch of catalysts that could keep it up:

1. Any news regarding launch of Alzheimer's Phase 2 trial. It's coming sooner than later now that the other PDP phase 3 isn't needed.
2. Any additional news regarding Phase 2 schizophrenia studies.
3. Any news about additional Baker Brothers or other large hedge fund buys. They're already up to 30%...why wouldn't they go to 40% or actually all the way? It has been done before by activist shareholders.
4. Additional upgrades by banks.
5. Any news that again shortens the time to NDA in PDP.
6. Unexpected solicitation from large pharma. Large pharma has no reason to wait on trying to partner with Acadia. The second Phase 3 is no longer needed so you're looking at a program that in the eyes of the FDA has achieved a high level of statistical significance and safety. I would look at the next trials that Acadia launches. A broad offering of Phase 2's is what I'd like to see...from Alzheimer's to schizophrenia to perhaps bipolar and insomnia. All this does is up the value of the program. Any one of these indications is blockbuster...combined takes pimavanserin to the top of the pack IMO. Best in show is my opinion.

I think you better listen to the CC tomorrow. I would love a dip personally as I can add, but it just keeps gapping up on you guys.

What don't you like here and how deep into the short are you?

Haha. You speak the truth!

The best stock to study is Incyte where Baker Bros took a very large position when it was still quite inexpensive. They also took a BOD seat. The situation is very similar. I think we all know how much money investors made there. It's going to be really hard for other funds to muscle Acadia around and it's going to be harder for large pharma companies to get great terms in licensing or M&A.

IMO, it's likely that Acadia will end up partnering worldwide rights or will be bought out. They don't have the infrastructure for a drug launch. They're actually set up perfectly for M&A, but the price isn't close to high enough. Licensing is interesting, but they're going to have to trust the partner. Biovail bailed after the merger with Valeant. I can promise you that Valeant is licking wounds from that decision. Pfizer, Lilly and AstraZeneca are really obvious partner or M&A candidates. Forest is smaller, but they have revenue to replace and this looks like a great fit. All my opinion, but Acadia is sitting pretty on a tee for the right group to take the big swing.

Why shouldn't the employees of this company get incentives? They've done a remarkable job. Baker Bros holds 30% of this company and holds a BOD seat...they're cool with it and they have more riding on this than anyone. When a company executes then the employees should get something. No one can deny just how well Acadia has turned things around. They should pay themselves....lots of us are already sitting on huge returns, but like Acadia employees, we think those returns are going to grow a lot more. All my opinion, but you can't prove anything by just spouting statements. Anyone can do that. And bringing up a few insider sells isn't going to cut it. Some of these guys have 10x returns and they're going to clear something off. Sometimes when you're too close to a situation it's hard to see just how big it can be and it's tempting to lock in gains. I have no problem with that. Apparently, I'm not alone in that!

Proving you wrong:

1. PDP alone is a very large indication. We don't need expanded label or off-label to become huge.

2. PDP is the pathway to market, but no one knows if they're going to look for an expanded label to cover Alzheimer's, schizophrenia and others or if they'll go for off-label use. Label expansion is expensive, but
the upside is obviously astronomical.

3. From 1995 to 2008, antipsychotic use for indications without FDA approval increased from 4.4M visits in 1995 to 9.0M in 2008. The estimated cost associated with off-label use in 2008 was US$6.0 billion. Bipolar disorder was one of the primary off-label indications.

Alexander, G et al., (2011). INCREASING OFF-LABEL USE OF ANTIPSYCHOTIC MEDICATIONS IN THE UNITED STATES, 1995-2008. Pharmacoepidemiol Drug Saf. 2011 February; 20(2): 177–184. Published online 2011 January 6. doi: 10.1002/pds.2082

4. More than one-fifth of U.S. nursing home residents take at least one antipsychotic medication. These are typically prescribed for off-label use, according to a research letter published in a 2013 issue of the Journal of the American Medical Association.

5. 'Off-label drug uses are often widely accepted, and private insurance companies as well as Medicare and Medicaid will reimburse for these off-label uses because the medical community or medical compendiums on effective treatment consider them "standard of care." In cancer treatment, for instance, many patients are routinely treated with one or more drugs for an off-label indication. Tricyclic antidepressants have largely been supplanted by more focused drugs to treat depression, but their off-label use to treat neuropathic pains associated with strokes, spinal-cord injuries, or cerebral palsy is a common and preferred medical treatment'.

R. H. Dworkin et al., "Recommendations for the Pharmacological Management of Neuropathic Pain: An Overview and Literature Update," Mayo Clinic Proceedings 85, no. 3, suppl. (2010): S3–S14

Good luck to you.

You're going to get owned on this one.

I was an early investor in Incyte and all Incyte investors likely remember the commanding position that Baker Bros took in Incyte. They made an absolute fortune there. I'm sure that Baker Bros views Acadia as their next huge winner. They already own something like 30% which is obviously huge. It seems to me that they're not done adding either. They certainly have the funds to buy the entire company if they so desired.

Valuing Acadia isn't really that difficult because the on-ramp via Parkinson's psychosis is going to rapidly lead to a drug with known efficacy in schizophrenia, possibly Alzheimer's, possibly depressive conditions and possibly even insomnia. It has ultra-blockbuster written all over it. This is the type of compound that can literally make a pharma company. I almost don't want them to be taken out because of the huge potential here. It makes me thing of Celgene when they were just at $1B...they're now at $50B.

The FDA has waived the need for the next trial....an NDA is going to happen and off-label use will be huge. This is early days and Acadia is a steal IMO.

Sentiment: Strong Buy

I know you're right. Completely right.

I absolutely hear you loud and clear on that one. She has solid VC affiliation, but it won't be VC's taking things to the next level. She will have to attract institutional investors. We need way more information about Ocera and their lead compounds. Vipin Garg said something about a powerpoint presentation being posted to TZYM's website.

True, but I'm sure with time they would find a way to take some on given time.

Liquidation wouldn't have brought any value to shareholders so I guess a reverse merger was the only way to go. It looks like BMS gave no value to the platform which is too bad. That would have been a clean and easy exit.

Yeah because of the reverse split! You're kidding or you're ignorant. Can't tell.

They are scared to death and they should be. Large institutions will continue to acquire huge blocks and the float will tighten. Shorts are in really deep...some will be forced to cover. I love it...they play the odds but every now and then they just get beat down because their ignorance is exposed.

There have been many biotechs that traded well into the billion market cap range with solid Phase 3 data. You have no clue what you're talking about. Zero.

Absolutely correct and it's the off-label that is so incredibly exciting. Think about pima being used in schizophrenia or Alzheimer's. The potential is unreal. I don't think this has even started to really move yet. I was in CEPH back in the day when provigil came to market. This is the real deal.