The drug, labeled NBI-98854, did much better than a placebo in reducing symptoms in patients with tardive dyskinesia, and illness that causes involuntary spasms and movements. In the study, doctors who rated patient symptoms said 67% of patients were "much improved" or "very much improved" after six weeks of using the drug. Only 16% of patients in the placebo group showed similar progress.
Nuerocrine still has to meet with the Food and Drug Administration about designing a late-stage study for the experimental drug. The San Diego drug company hopes to file a proposed study in the first half of 2014.
Nuerocrine does not yet have any products on the market.
Following news of the mid-stage study, Roth Capital Partners analyst raised his price target for Nuerocine to $22 from $16. Jefferies analyst Thomas Wei also raised his price target to $23 from $16. Wei estimates the new drug could be approved by 2017.
TheStreet Ratings team rates NEUROCRINE BIOSCIENCES INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate NEUROCRINE BIOSCIENCES INC (NBIX) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."