Canaccord Genuity reaffirmed a Buy recommendation and left its $164.00 price target intact for Neurocrine Biosciences (NASDAQ:NBIX) after the company released fourth-quarter 2025 results on Tuesday. That price objective sits close to InvestingPro's Fair Value estimate, which indicates the company, with a market capitalization of $13.7 billion, may be trading below intrinsic value.
For the quarter, Neurocrine reported Ingrezza sales of $658 million, a figure marginally under the FactSet consensus of $662 million. Ingrezza is approved to treat tardive dyskinesia and Huntington's chorea and remains a core revenue driver for the business.
The recently launched Crenessity - Neurocrine's therapy for classic congenital adrenal hyperplasia - delivered quarterly sales of $135 million, materially above expectations. Canaccord had forecast $99 million for the product, while consensus stood at $117 million.
Looking ahead, Neurocrine provided an outlook for Ingrezza sales in 2026 of $2.7-2.8 billion, a range Canaccord describes as "achievable/beatable." The company did not provide formal guidance for Crenessity, but management signaled an expectation of continued growth for the newly introduced therapy. The outlook follows a reported 19.6% revenue increase over the last twelve months.
Canaccord also drew attention to cost pressures. The firm noted that Neurocrine's expense guidance came in higher than some investors were anticipating, and it emphasized that significant pipeline catalysts are not expected until 2027 or later. Those factors, Canaccord warned, could weigh on the stock in the near term despite the firm's longer-term bullish view.
Even with those caveats, Canaccord maintained that Neurocrine is "undervalued on approved products" and presents an opportunity ahead of when the company's "relatively large pipeline" begins to be reflected in valuation. The shares currently trade at a price-to-earnings ratio of 33.3, a level InvestingPro characterizes as a high earnings multiple given near-term growth expectations. Across the analyst community, sentiment skews positive, with a strong buy consensus and price targets spanning $140 to $217.
Additional detail from Neurocrine's quarter shows the company beat expectations on both earnings per share and revenue. Reported EPS was $1.88 versus a forecast of $1.86, while total revenue reached $805.5 million, narrowly above the $802.45 million estimate. These metrics underscore the company's solid finish to the year.
In separate analyst activity, H.C. Wainwright reduced its price target on Neurocrine to $192 from $198 but kept a Buy rating in place. The change follows a year where Ingrezza saw record prescription levels and Crenessity completed a successful launch year, developments that point to ongoing commercial momentum.
Implications for markets and sectors
- Biotechnology and pharmaceutical equities may be influenced by Neurocrine's commercial execution and the timeline for late-stage pipeline catalysts.
- Health-care investors tracking drug launches and prescription trends will likely monitor Crenessity's trajectory closely, given its strong initial sales.