Neurocrine Biosciences (NBIX) Q2 2024 earnings summary

Executive summary

• INGREZZA net product sales reached $580M in Q2 2024, up 32% year-over-year, driven by strong demand and improved gross-to-net dynamics; full-year sales guidance was raised to $2.25–$2.3B, reflecting robust performance and commercial momentum.

• INGREZZA Sprinkle formulation was approved and launched, offering an alternative for patients with swallowing difficulties, and maintains exclusivity through 2038.

• Crinecerfont received FDA priority review for congenital adrenal hyperplasia, with PDUFA dates set for December 2024, and is positioned as a potential second blockbuster.

• Positive topline Phase 2 data for NBI-1065845 in major depressive disorder; multiple new Phase 1 and 2 studies initiated for pipeline assets.

• CEO transition announced: Kevin Gorman to retire in October 2024, succeeded by Kyle Gano.

Financial highlights

• Q2 2024 total revenues were $590.2M, up from $452.7M in Q2 2023; INGREZZA Q2 sales were $580M, up 32% year-over-year.

• First half 2024 INGREZZA sales reached $1.1B, up from $873.1M year-over-year.

• Q2 2024 non-GAAP net income was $169M ($1.63 EPS), up from $126M ($1.25) in Q2 2023; GAAP net income was $65M ($0.63 EPS).

• Q2 2024 operating income was $145.4M, up from $73.6M in Q2 2023.

• Cash, cash equivalents, and marketable securities totaled $1.7B as of June 30, 2024.

Outlook and guidance

• 2024 INGREZZA net sales guidance raised to $2.25–$2.3B.

• 2024 non-GAAP R&D expense expected at $600–$630M; non-GAAP SG&A at $830–$850M.

• Guidance reflects ongoing commercial investments in INGREZZA and pre-launch activities for crinecerfont.

• Existing capital resources and anticipated revenues expected to fund operations for at least the next 12 months.

• Material cash requirements include up to $17.7B in potential milestone payments under collaboration and license agreements.