Tags
Biopharmaceutical, Elagolix, Endocrine, Endometriosis, Innovation, Investments, Opportunity, Research, Stocks, Uterine Fibroids
Company Description-
Based in San Diego, Neurocrine Biosciences (NBIX) is a biopharmaceutical company that discovers and develops innovative and life-changing pharmaceuticals for diseases with unmet medical needs or solutions. They utilize a very heavy research and development platform while focusing on neurological and endocrine based diseases and disorders. The company works hard to create new drugs and therapies, screen these therapies and then advance them through preclinicals and trials in order to pass along their products to consumers and hopefully better the lives of patients. Their overall goals are to improve the lives of patients suffering from diseases with unmet clinical needs and to use innovation to create cures for said diseases.
Drugs and Pipeline-
Neurocrine currently has three major drugs in the pipeline. They are Elagolix (a Gonadotropin-Releasing Hormone (GnRH) Antagonist), NBI-98854 (a Vesicular Monoamine Transporter 2 Inhibitor), and NBI-77860. Elagolix is a drug that can potentially be used for the treatment of uterine diseases whereas NIB-98854 AND NBI-77860 are drugs that are focused on diseases of the central nervous system. Elagolix has shown the most promise so far and is now in phase three of trials.
Elagolix –
Elagolix is a drug that stimulates the secretion of the pituitary hormones that are responsible for sex steroid production and normal reproductive function. This is clinically useful in treating diseases such as endometriosis and uterine fibroids as it allows for hormone suppression. It can thus lessen the pain and symptoms of Menopause and hormone-dependent diseases within the body. Uterine fibroids are benign tumors that form in the walls of the uterus. Although most women do not feel symptoms, uterine fibroids can cause pelvic pain, reproductive problems, and severe bleeding that can lead to anemia. This can eventually lead to the woman needing a hysterectomy as well. Elagolix has shown its potential use for diseases such as endometriosis and uterine fibroids in phases one and two and has now progressed to phase three testing. However, this drug promises even more than this as it could also potentially be utilized in other women’s diseases involving the uterus and uterine system.
Stock Analysis-
When considering and evaluating the stock value of Neurocrine Biosciences, we must look at what they potentially have to offer. They have shown a lot of promise with their Elagolix drug and if they are able to pass this drug through phase three trials then their stock will skyrocket. However, with any kind of therapeutic drug there is no guarantee that success will occur and they still have quite a way to go. Neurocrine Biosciences is currently priced at $13.84 compared to their price of around $19 in mid-January. Neurocrine saw their high price in 2006 but the stock plummeted 62% after the FDA denied approval for a drug they had created to treat insomnia. They were forced to lay off a large amount of people and struggled mightily until 2010 when it was announced that Elagolix had achieved its main and secondary goals in its study. If they are to find success with Elagolix in the phase three stage and are able to move the drug to market, they will reap tremendous gains. The company has seen a large decrease in net revenue this year as they turn their focus to Elagolix. However, their current ratio has increased dramatically in recent years. Analysts expect the stock to find great success with the impending success of Elagolix and have pushed a one year price target of around $20 on average (Yahoo Finance). Based on analyst estimates and the potential of this company, I rate the stock a buy. They may not see gains in the near future, but once Elagolix is able to reach the market, the stock will rise substantially.