NEUROCRINE BIOSCIENCES INC Q4 FY2025 earnings call

• INGREZZA performance was strong with double-digit volume-driven growth continuing into 2026, targeting double-digit growth supported by unmet need among TD or HD chorea patients. - CRENESSITY had an exceptional launch, with prescriptions covering over 10% of the classic and general adrenal hyperplasia patient population in its first full commercial year. - R&D pillars include leading the VMAT2 category with next-gen inhibitors, advancing CRF through two-pronged approach, and maximizing/evolving a strong pipeline with late-stage neuropsychiatry programs. - Financials: Cash position increased to $2.5 billion from $1.8 billion in 2024. Non-GAAP operating margin was ~30% in 2025. - Commercial strategies: Expanding CRENESSITY sales force, leveraging technology to reach more prescribers, and continuing medical education for both INGREZZA and CRENESSITY.

In 2025, total product sales grew to over $2.8 billion. INGREZZA generated just over $2.5 billion in revenue, up 9% year-over-year, driven by double-digit volume growth. CRENESSITY exited 2025 with over $300 million in net product sales and approximately 10% of addressable classic and general adrenal hyperplasia patient population being prescribed. INGREZZA contributed around 89% of total product sales in 2025, while CRENESSITY contributed over 10%.

• INGREZZA sales guided to $2.7 billion to $2.8 billion in 2026, representing approximately 10% growth, driven by double-digit volume growth partially offset by price declines. - No specific sales guidance for CRENESSITY in 2026, but expected strong growth with ongoing investments in sales and education. - R&D expense expected to grow due to full-year investment in Phase III programs and initiation of new Phase II/Phase I programs.

• Market dynamics risks related to formulary access and competition for INGREZZA. - Uncertainties in clinical trial execution and regulatory approval for pipeline programs. - Risks associated with the launch and market adoption of CRENESSITY, including seasonality and limited prescriber experience with classic CAH.

Q: Paul Matteis with Stifel asked about CRENESSITY's patient add rate and seasonality.

A: Matthew Abernethy said they'll provide weekly sales info, expect steady new patient additions, and it's too early to determine seasonality.

Q: Cory Kasimov with Evercore ISI asked about INGREZZA vs AUSTEDO receptor occupancy and next-gen VMAT2 inhibitors.

A: Sanjay Keswani said INGREZZA had nearly double target occupancy vs AUSTEDO, and they started a Phase II study of next-gen VMAT2 inhibitor.

Q: Philip Nadeau with TD Cowen asked about CRENESSITY's early launch bolus and seasonality.

A: Kyle Gano said it's too early to call seasonality, but feedback is positive.

Q: Brian Abrahams with RBC Capital Markets asked about R&D expense increase.

A: Matthew Abernethy said it's due to Phase III trials, obesity program is minimal, and Phase III expenses will roll off in 2028.

Q: Tazeen Ahmad with Bank of America asked about CRENESSITY guidance.

A: Eric Benevich said it may not take as long as INGREZZA to provide guidance, and Matthew Abernethy said no guidance doesn't mean no growth.

Q: Corinne Jenkins with Goldman Sachs asked about INGREZZA and AUSTEDO impact.

A: Eric Benevich said they're prepared for 2027 formulary negotiations and expect strong 2026 for INGREZZA.

Q: Jay Olson with Oppenheimer asked about Alzheimer's psychosis study.

A: Sanjay Keswani said they have experienced team and strategies to mitigate operational risks.

Q: Joyce Zhou with JPMorgan asked about CRENESSITY's 2-year data.

A: Sanjay Keswani said clinicians have positive feedback on durability of benefit, safety, and tolerability.

Q: Mohit Bansal with Wells Fargo asked about SG&A and INGREZZA growth.

A: Matthew Abernethy said SG&A is for sales force expansion, INGREZZA expected mid-teens volume growth.

Q: Myles Minter with William Blair asked about CRENESSITY sales force expansion.

A: Eric Benevich said expansion will help reach more prescribers and Matthew Abernethy mentioned Q1 gross to net impact.

Q: Yigal Nochomovitz with Citigroup asked about CRENESSITY's market share and AI use.

A: Eric Benevich said ~10% of CAH population is on CRENESSITY, and they use AI to identify prescribers.

Q: David Amsellem with Piper Sandler asked about CRENESSITY barriers and competitors.

A: Eric Benevich said lack of knowledge is a barrier, and no pushback from endocrinologists waiting for competitors.

Q: Luke Herrmann with Baird asked about CRENESSITY's patient management settings.

A: Eric Benevich said patients are managed in various settings, and they're working to identify and engage more prescribers.

Q: Marc Goodman with Leerink Partners asked about INGREZZA pricing and competitors.

A: Matthew Abernethy said price stability in 2026, and Kyle Gano said CRENESSITY has a strong profile.

Q: Phoebe Tan with Jefferies asked about CRENESSITY's pediatric Phase II study.

A: Sanjay Keswani said they're initiating a Phase II study for patients under 4 and expect data next year.

Q: Sumant Kulkarni with Canaccord asked about EU business sale.

A: Kyle Gano said EU programs weren't aligned, focusing on U.S. market.

Q: Sean Laaman with Morgan Stanley asked about 890's receptor occupancy.

A: Sanjay Keswani said 890 aims for at least same receptor occupancy as INGREZZA, with long-acting potential.

Q: Danielle Brill with Truist asked about CRENESSITY's prescriber patterns.

A: Eric Benevich said it's due to patient flow and gradual GC tapering, and they're working to educate more prescribers.