Neurocrine Biosciences Inc (NBIX) Reports Strong Growth in INGREZZA Sales for Q4 and Full Year 2023
Revenue Growth: INGREZZA net product sales reached $500 million in Q4 and $1.84 billion for the full year, marking a 25% and 29% increase year-over-year, respectively.
Net Income: GAAP net income for Q4 rose to $147.7 million, with a diluted EPS of $1.44, while non-GAAP net income reached $157.7 million, with a diluted EPS of $1.54.
Research and Development: R&D expenses increased to support an expanding clinical portfolio, with GAAP R&D at $137.5 million for Q4.
Financial Position: The company reported a strong cash position with $1.7 billion in cash, cash equivalents, and marketable securities as of December 31, 2023.
2024 Outlook: INGREZZA net product sales are projected to be between $2.1 and $2.2 billion for the full year 2024.
On February 7, 2024, Neurocrine Biosciences Inc (NASDAQ:NBIX) released its 8-K filing, detailing its financial results for the fourth quarter and full year ended December 31, 2023, and providing financial expectations for 2024. Neurocrine Biosciences, a research-based pharmaceutical company, reported significant growth in net product sales, particularly for its flagship product INGREZZA (valbenazine), used to treat tardive dyskinesia.
Neurocrine Biosciences Inc is known for advancing drug candidates in central nervous system and endocrine-related categories, with three late-stage clinical programs including elagolix, opicapone, and ingrezza for various health conditions.
Financial Performance and Challenges
The company's financial achievements reflect a robust demand for INGREZZA, contributing to the substantial revenue growth. However, increased R&D and SG&A expenses highlight the company's continued investment in its clinical portfolio and commercial initiatives. These investments are crucial for maintaining growth momentum but also pose challenges as they impact the company's profitability.
Neurocrine Biosciences' CEO, Kevin Gorman, Ph.D., expressed pride in the company's progress, particularly with INGREZZA and the positive Phase 3 results for crinecerfont, a potential treatment for congenital adrenal hyperplasia. Gorman emphasized the company's trajectory towards becoming a leading neuroscience-focused entity.
Financial Achievements and Importance
The company's financial achievements, particularly the growth in INGREZZA sales, are significant in the context of the drug manufacturing industry, where product sales drive revenue and fund ongoing research and development. The strong cash position underscores the company's ability to invest in future growth opportunities and navigate the competitive landscape.
Income Statement and Balance Sheet Highlights
Neurocrine Biosciences reported total revenues of $515.2 million for Q4 2023, compared to $412.0 million for Q4 2022. The GAAP net income for Q4 2023 was $147.7 million, or $1.44 per diluted share, an increase from $89.0 million, or $0.88 per diluted share, for the same period in the previous year. Non-GAAP net income for Q4 2023 was $157.7 million, or $1.54 per diluted share, compared to $124.7 million, or $1.24 per diluted share, for Q4 2022.
The balance sheet reflects a solid financial position with total cash, cash equivalents, and marketable securities of approximately $1.7 billion as of December 31, 2023. This represents a significant increase from the $1.3 billion reported at the end of 2022.
"With a strong foundation in INGREZZA, a potential second important growth driver in crinecerfont, and an advancing pipeline, Neurocrine Biosciences is making significant progress towards becoming a leading neuroscience-focused company," said Kevin Gorman, Ph.D., CEO of Neurocrine Biosciences.
Analysis of Company Performance
Neurocrine Biosciences' performance in 2023 demonstrates a successful strategy focused on growing its core product sales while investing in research and development for future growth. The company's ability to increase net product sales amidst a competitive market is a testament to the strength of its commercial initiatives and the clinical value of INGREZZA.
The company's forward-looking guidance for 2024, with INGREZZA net product sales expected to reach up to $2.2 billion, reflects confidence in its continued growth trajectory. The anticipated FDA regulatory submission for crinecerfont further highlights the company's commitment to expanding its portfolio and addressing unmet medical needs.
Neurocrine Biosciences' financial results and strategic initiatives position it well for sustained growth and innovation in the neuroscience sector, making it a company of interest for value investors and potential GuruFocus.com members seeking opportunities in the biopharmaceutical industry.
Explore the complete 8-K earnings release (here) from Neurocrine Biosciences Inc for further details.
This article first appeared on GuruFocus.
