Neurocrine Biosciences today announced its financial results for the second quarter ending June 30, 2024, and provided an update on its 2024 financial outlook. Dr. Kevin Gorman, Chief Executive Officer of Neurocrine Biosciences, expressed enthusiasm about the company’s growth prospects. “We are energized by the significant opportunity to reach more patients and are encouraged by our recent advancements. INGREZZA continues to excel in treating tardive dyskinesia and Huntington’s disease chorea, and the FDA has granted Priority Review for crinecerfont to address congenital adrenal hyperplasia,” said Dr. Gorman. “As we build our endocrinology team and expand the INGREZZA salesforce, we are positioning Neurocrine for sustained growth.”
Dr. Gorman also shared his confidence in Neurocrine’s future as he prepares for retirement in October. “I am proud of what we’ve accomplished and look forward to seeing the continued success of our team under Kyle Gano’s leadership.”
Financial Highlights
Three Months Ended June 30
Six Months Ended June 30
(unaudited, in millions, except per share data)
| 2024 | 2023 | 2024 | 2023 | |
|---|---|---|---|---|
| Revenues: | ||||
| Net Product Sales | $583.8 | $446.3 | $1,092.8 | $861.6 |
| Collaboration Revenue | $6.4 | $6.4 | $12.7 | $11.5 |
| Total Revenues | $590.2 | $452.7 | $1,105.5 | $873.1 |
| 2024 | 2023 | 2024 | 2023 | |
|---|---|---|---|---|
| GAAP Expenses: | ||||
| R&D | $191.1 | $145.8 | $350.5 | $285.3 |
| SG&A | $242.0 | $221.8 | $485.1 | $464.5 |
| Net Income | $65.0 | $95.5 | $108.4 | $18.9 |
| EPS – Diluted | $0.63 | $0.95 | $1.04 | $0.19 |
| 2024 | 2023 | 2024 | 2023 | |
|---|---|---|---|---|
| Non-GAAP Measures: | ||||
| Net Income | $168.9 | $125.7 | $293.7 | $76.2 |
| EPS – Diluted | $1.63 | $1.25 | $2.83 | $0.76 |
As of June 30, 2024, the company had cash, cash equivalents, and marketable securities totaling approximately $1.7 billion, reflecting a $309 million payment to fully retire convertible senior notes.
INGREZZA Sales Performance
In Q2 2024, INGREZZA’s net product sales reached $580 million, a 32% increase compared to the same period in 2023, driven by strong patient demand and improved gross-to-net dynamics.
Key Financial Updates
- R&D Expenses: Increased due to investments in clinical programs, including muscarinic compounds and gene therapies. Includes $27 million for development milestones with collaborators Nxera Pharma, Takeda, and Voyager.
- SG&A Expenses: Higher due to expansion in crinecerfont-related activities and INGREZZA investments. Includes $14 million impairment charge for vacated office space.
- Net Income Adjustments: Reflects a $50 million charge from convertible senior notes conversions, $20 million loss on equity securities, $27 million in development milestones, and $14 million office space impairment.
Recent Developments
- Leadership Transition: Dr. Kevin Gorman will retire as CEO on October 11, 2024, with Dr. Kyle Gano succeeding him. Dr. Gorman will continue on the Board.
- Clinical Advances: Positive Phase 2 data for NBI-1065845 and acceptance of NDAs for crinecerfont with Priority Review by the FDA.
- Pipeline Progress: Initiated Phase 1 and 2 studies for several new compounds, including NBI-1070770 and NBI-1117567.
- Partnership Updates: INGREZZA qualified for the Specified Small Manufacturer Exception under the Inflation Reduction Act.
Updated Financial Guidance for 2024
- INGREZZA Net Product Sales: $2.25 billion to $2.30 billion.
- GAAP R&D Expense: $665 million to $695 million.
- Non-GAAP R&D Expense: $600 million to $630 million.
- GAAP SG&A Expense: $955 million to $975 million.
- Non-GAAP SG&A Expense: $830 million to $850 million.
Pipeline Milestones and Key Activities
- NBI-1065845: Positive Phase 2 data; Phase 3 studies to begin in 2025.
- Crinecerfont: Priority Review with PDUFA dates in December 2024.
- NBI-1117568, Luvadaxistat, and other compounds: Phase 2 and Phase 1 studies ongoing.
Conference Call
Neurocrine Biosciences will hold a live conference call and webcast today at 8:00 a.m. ET. Access the call by dialing 800-445-7795 (US) or 785-424-1699 (International) with the conference ID: NBIX. The webcast and slides will be available on the company’s website under Investors.
About Neurocrine Biosciences
Neurocrine Biosciences is dedicated to developing treatments for neurological, neuroendocrine, and neuropsychiatric disorders. The company’s portfolio includes FDA-approved therapies and a robust pipeline targeting complex conditions.
