Neurocrine Biosciences, Inc. Q2 FY2025 earnings call

Management Statement and Operational Highlights

• Commercial Perspective: INGREZZA base business shows solid growth with strategic investments enhancing payer access; CRENESSITY has strong early performance, well-received by patients and prescribers.
• Clinical Pipeline: Registrational studies for osavampator in MDD and NBI-'568 in schizophrenia progressing; initiated Phase III programs; preclinical biologics candidates advancing; R&D Day on December 16 to share data and R&D transformation.
• Financials: Net product sales in Q2 were $682 million, 17% year-over-year growth; SG&A GAAP and non-GAAP operating expense guidance increased by $25 million; strong cash position with $1.8 billion in cash.

Segment Performance

• INGREZZA: Second quarter sales were $624 million, with 15% sequential growth and 8% year-over-year growth. Record number of new patient starts and continued prescription VMAT2 market share gains. Net sales guidance revised to $2.5 billion to $2.55 billion, accounting for double-digit volume gains partially offset by near-term gross to net impact. Revenue contribution: Significant, with ongoing growth and market access initiatives driving long-term potential.
• CRENESSITY: Grew sequentially from $15 million in Q1 2025 to $53 million in Q2 2025. Received 664 new treatment forms in Q2, with over 1,000 since launch. Over 75% of dispensed prescriptions reimbursed. Revenue contribution: Early strong performance, positioned as potential second commercial blockbuster with high unmet need and favorable data.

Guidance

• INGREZZA net sales guidance revised to $2.5 billion to $2.55 billion, accounting for double-digit volume gains and near-term gross to net impact.
• SG&A GAAP and non-GAAP operating expense guidance increased by $25 million to support sales growth.
• Registrational studies for osavampator and NBI-'568 progressing, with top line data expected in 2027 and later.

Risks

• Impact of contracting and pricing on INGREZZA net sales.
• Uncertainties related to IRA negotiations and competition.
• Potential taper in CRENESSITY growth if prescribing concentration or reimbursement issues arise.

Question and Answer

Q: Tazeen Ahmad on narrowing INGREZZA guidance A: Matthew Abernethy explained it's due to midyear contracting and price decline assumption.

Q: Phil Nadeau on CRENESSITY launch dynamics A: Eric Benevich and Eiry Roberts discussed steady adoption, no bolus effect, and positive reception.

Q: Paul Matteis on CRENESSITY prescribing concentration A: Eric Benevich talked about spread patient population and early adoption.

Q: Cory Kasimov on CRENESSITY patients moving from trials A: Matthew Abernethy said it's de minimis.

Q: Jay Olson on joining Neurocrine A: Sanjay Keswani mentioned transformational stage and validated targets.

Q: Brian Abrahams on INGREZZA midyear contracting A: Kyle Gano and Eric Benevich discussed access maximization and IRA learnings.

Q: Anupam Rama on valbenazine study for VMAT2 mechanism A: Sanjay Keswani and Eiry Roberts talked about learning opportunities and safety data.

Q: Brian Skorney on CRENESSITY figure derivation A: Matthew Abernethy discussed inventory build and gross to net.

Q: Yatin Suneja on IRA access A: Kyle Gano and Eric Benevich talked about access maximization and learnings.

Q: Ami Fadia on CRENESSITY physician penetration A: Eric Benevich discussed thin patient population and ongoing adoption.

Q: Corinne Johnson on CRENESSITY reimbursement A: Eric Benevich talked about nonformulary coverage and high reimbursement.

Q: Danielle Brill on CRENESSITY clinical data A: Eiry Roberts discussed ongoing trials and long-term data.

Q: Ash Verma on muscarinics pipeline A: Sanjay Keswani and Eiry Roberts talked about portfolio and AD psychosis.

Q: Marc Goodman on INGREZZA ASP A: Matthew Abernethy discussed full year impact and 2026 trajectory.

Q: Myles Minter on CRENESSITY discontinuation rates A: Eiry Roberts and Matthew Abernethy talked about low discontinuation and adherence.

Q: David Hoang on INGREZZA vs competitor and CAH patients A: Kyle Gano and Eric Benevich discussed INGREZZA growth and CAH patient estimate.

Q: Sumant Kulkarni on CRENESSITY weight loss A: Eiry Roberts talked about CRF1 antagonism and future indications.

Q: Michael Riad on INGREZZA volume split A: Eric Benevich discussed volume growth across segments.

Q: Laura Chico on CRENESSITY prescribing cadence A: Matthew Abernethy talked about de minimis trial patients and no capacity constraints.

Q: Evan Seigerman on '568 Phase III A: Kyle Gano discussed data supporting Phase III move.