Full Press Release Details
INGREZZA ® (valbenazine) Second Quarter Net Product Sales of $350 Million
INGREZZA ® (valbenazine) 2022 Net Product Sales Guidance Raised to $1.35 - $1.40 Billion
Essential Tremor Signal-Seeking Study Did Not Meet Specified Endpoints
SAN DIEGO , Aug. 4, 2022 /PRNewswire/ -- Neurocrine Biosciences, Inc. (Nasdaq: NBIX ) today announced its financial results for the second quarter ended June 30, 2022 and raised net sales guidance for INGREZZA in 2022.
"Following INGREZZA's strong performance in the first half of this year, we raised full year net sales guidance. Growth continues to be driven by improving diagnosis and treatment rates for patients with tardive dyskinesia," said Kevin Gorman , Ph.D., Chief Executive Officer of Neurocrine Biosciences. "Although disappointed that our essential tremor data was not what we hoped to see, we look forward to the continued advancement of our pipeline with the recent FDA approval to initiate a Phase 2 proof-of-concept study for the treatment of schizophrenia with our selective M4 agonist."
| Financial Highlights | |||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||
| (unaudited, in millions, except per share data) | 2022 | 2021 | 2022 | 2021 | |||
| Revenues: | |||||||
| Product sales, net | $ 352.0 | $ 266.8 | $ 657.0 | $ 497.8 | |||
| Collaboration revenue | 26.2 | 22.1 | 31.8 | 27.7 | |||
| Total revenues | $ 378.2 | $ 288.9 | $ 688.8 | $ 525.5 | |||
| GAAP Research and Development (R&D) | $ 135.9 | $ 74.8 | $ 238.1 | $ 148.0 | |||
| Non-GAAP R&D | $ 119.7 | $ 65.6 | $ 209.4 | $ 123.8 | |||
| GAAP Selling, General and Administrative (SG&A) | $ 182.8 | $ 143.2 | $ 383.5 | $ 272.2 | |||
| Non-GAAP SG&A | $ 149.5 | $ 123.8 | $ 325.7 | $ 234.9 | |||
| GAAP net (loss) income | $ (16.9) | $ 42.3 | $ (3.0) | $ 74.4 | |||
| GAAP (loss) earnings per share – diluted | $ (0.18) | $ 0.43 | $ (0.03) | $ 0.76 | |||
| Non-GAAP net income | $ 82.1 | $ 70.1 | $ 111.8 | $ 118.9 | |||
| Non-GAAP earnings per share – diluted | $ 0.84 | $ 0.72 | $ 1.14 | $ 1.21 | |||
| (unaudited, in millions) | June 30, 2022 | December 31, 2021 | |||||
| Total cash, cash equivalents and marketable securities | $ 1,053.5 | $ 1,272.0 |
Second Quarter INGREZZA Net Product Sales and Commercial Highlights:
Financial Highlights:
A reconciliation of GAAP to non-GAAP financial results can be found in Table 3 and Table 4 at the end of this earnings release.
| Updated 2022 INGREZZA Sales and Operating Expense Guidance: | |||
| Range | |||
| (in millions) | Low | High | |
| INGREZZA Net Product Sales 1 | $ 1,350 | $ 1,400 | |
| GAAP R&D expense 2 | $ 415 | $ 450 | |
| Non-GAAP R&D expense 3 | $ 360 | $ 395 | |
| GAAP SG&A expense | $ 720 | $ 735 | |
| Non-GAAP SG&A expense 3 | $ 605 | $ 620 |
| 1. | INGREZZA sales guidance for fiscal 2022 is based on recent trends and the anticipated benefit from our recently completed salesforce expansion. If new COVID-19 related disruptions emerge, the Company's ability to meet these expectations could be negatively impacted. |
| 2. | GAAP R&D guidance includes (i) amounts for milestones that are probable of achievement or have been achieved and (ii) amounts for in-process research and development once significant collaboration and licensing arrangements have been completed. GAAP R&D guidance includes approximately $40 million of milestone expenses in connection with collaborations. |
| 3. | Non-GAAP guidance adjusted to exclude estimated non-cash stock-based compensation expense of $60 million in R&D and $110 million in SG&A. |
Based upon available Federal net operating losses and tax credits, the Company expects to begin making cash payments for Federal income tax beginning in the fourth quarter of 2022.
| Expected Future Pipeline Milestones and Key Activities | ||
| Program | Indication | Expected Milestones / Key Activities |
| Valbenazine * (Selective VMAT2 Inhibitor) | Chorea in Huntington Disease | File Supplemental New Drug Application in Second Half (2H) 2022 |
| Adjunctive Treatment of Schizophrenia | Top-Line Data from 1st Registrational Study in 2023 | |
| Dyskinetic Cerebral Palsy | Top-Line Registrational Data in 2024 | |
| NBI-827104** (Selective T-Type Ca V Channel Blocker) | Rare Pediatric Epilepsy: CSWS | Top-Line Phase 2 Data in 2H 2022 |
| NBI-1117568 † (Selective M4 Agonist) | Treatment of Schizophrenia | Initiating Phase 2 Study in 2H 2022 |
| NBI-1070770 | Psychiatric Indication | Initiating Phase 1 Study in 2H 2022 |
| Crinecerfont (CRF1 Receptor Antagonist) | Congenital Adrenal Hyperplasia (Adult) | Top-Line Registrational Data in 2023 |
| Congenital Adrenal Hyperplasia (Pediatric) | Top-Line Registrational Data in 2023 | |
| NBI-1065845 ‡ (AMPA Potentiator) | Inadequate Response to Treatment in Major Depressive Disorder | Phase 2 Data in 2023 |
| NBI-1065846 ‡ (GPR-139 Agonist) | Anhedonia in Major Depressive Disorder | Phase 2 Data in 2023 |
| NBI-921352 ∞ (Selective Na V 1.6 Channel Blocker) | Focal Onset Seizure in Adults | Phase 2 Data in 2023 |
| Key: VMAT2 = Vesicular Monoamine Transporter 2; Ca V = Calcium Channel, Voltage-Gated; CSWS = Epileptic Encephalopathy with Continuous Spike and Wave During Sleep; M4= M4 Muscarinic Receptor; CFR1 = Corticotropin-Releasing Factor Type 1; AMPA = Alpha-Amino-3-Hydroxy-5-Methyl-4-Isoxazole Propionic Acid; GPR = Orphan G Protein Coupled Receptor; Na V 1.6 = Sodium Channel, Voltage-Gated | |
| Neurocrine Bioscience Partners: * Mitsubishi Tanabe Pharma Corporation has commercialization rights in East Asia; ** In-Licensed from Idorsia Pharmaceuticals; † In-Licensed from Sosei Group Corporation; ‡ Partnered with Takeda Pharmaceutical Company Limited; ∞ In-Licensed from Xenon Pharmaceuticals |
Conference Call and Webcast Today at 4:30 PM Eastern Time Neurocrine Biosciences will hold a live conference call and webcast today at 4:30 p.m. Eastern Time ( 1:30 p.m. Pacific Time ). Participants can access the live conference call by dialing 800-895-3361 (US) or 785-424-1062 (International) using the conference ID: NBIX. The webcast can also be accessed on Neurocrine Biosciences' website under Investors at www.neurocrine.com . A replay of the webcast will be available on the website approximately one hour after the conclusion of the event and will be archived for approximately one month.
About Neurocrine Biosciences Neurocrine Biosciences is a neuroscience-focused, biopharmaceutical company with a simple purpose: to relieve suffering for people with great needs, but few options. We are dedicated to discovering and developing life-changing treatments for patients with under-addressed neurological, neuroendocrine and neuropsychiatric disorders. The company's diverse portfolio includes FDA-approved treatments for tardive dyskinesia, Parkinson's disease, endometriosis* and uterine fibroids*, as well as over a dozen mid-to-late-stage clinical programs in multiple therapeutic areas. For three decades, we have applied our unique insight into neuroscience and the interconnections between brain and body systems to treat complex conditions. We relentlessly pursue medicines to ease the burden of debilitating diseases and disorders, because you deserve brave science. For more information, visit neurocrine.com, and follow the company on LinkedIn. (*in collaboration with AbbVie)
Non-GAAP Financial Measures In addition to the financial results and financial guidance that are provided in accordance with accounting principles generally accepted in the United States (GAAP), this press release also contains the following non-GAAP financial measures: non-GAAP R&D expense, non-GAAP SG&A expense, and non-GAAP net income and net income per share. When preparing the non-GAAP financial results and guidance, the Company excludes certain GAAP items that management does not consider to be normal, including recurring cash operating expenses that might not meet the definition of unusual or non-recurring items. In particular, these non-GAAP financial measures exclude: non-cash stock-based compensation expense, non-cash interest expense related to convertible debt, loss on extinguishment of convertible senior notes, changes in fair value of equity security investments and certain adjustments to income tax expense. These non-GAAP financial measures are provided as a complement to results provided in accordance with GAAP as management believes these non-GAAP financial measures help indicate underlying trends in the Company's business, are important in comparing current results with prior period results and provide additional information regarding the Company's financial position. Management also uses these non-GAAP financial measures to establish budgets and operational goals that are communicated internally and externally and to manage the Company's business and evaluate its performance. The Company provides guidance regarding combined R&D and SG&A expenses on both a GAAP and a non-GAAP basis. A reconciliation of these GAAP financial results to non-GAAP financial results is included in the attached financial information.
| TABLE 1 NEUROCRINE BIOSCIENCES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | |||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||
| (in millions, except per share data) | 2022 | 2021 | 2022 | 2021 | |||
| Revenues: | |||||||
| Product sales, net | $ 352.0 | $ 266.8 | $ 657.0 | $ 497.8 | |||
| Collaboration revenue | 26.2 | 22.1 | 31.8 | 27.7 | |||
| Total revenues | 378.2 | 288.9 | 688.8 | 525.5 | |||
| Operating expenses: | |||||||
| Cost of revenues | 4.8 | 3.1 | 9.4 | 6.0 | |||
| Research and development | 135.9 | 74.8 | 238.1 | 148.0 | |||
| Acquired in-process research and development | — | 5.0 | — | 5.0 | |||
| Selling, general and administrative | 182.8 | 143.2 | 383.5 | 272.2 | |||
| Total operating expenses | 323.5 | 226.1 | 631.0 | 431.2 | |||
| Operating income | 54.7 | 62.8 | 57.8 | 94.3 | |||
| Other (expense) income: | |||||||
| Interest expense | (2.2) | (6.2) | (4.8) | (12.6) | |||
| Unrealized (loss) gain on equity securities | (7.4) | — | 12.5 | 0.7 | |||
| Loss on extinguishment of convertible senior notes | (70.0) | — | (70.0) | — | |||
| Investment income and other, net | 1.6 | 0.9 | 2.6 | 2.3 | |||
| Total other expense, net | (78.0) | (5.3) | (59.7) | (9.6) | |||
| (Loss) income before (benefit from) provision for income taxes | (23.3) | 57.5 | (1.9) | 84.7 | |||
| (Benefit from) provision for income taxes | (6.4) | 15.2 | 1.1 | 10.3 | |||
| Net (loss) income | $ (16.9) | $ 42.3 | $ (3.0) | $ 74.4 | |||
| (Loss) earnings per share, basic | $ (0.18) | $ 0.45 | $ (0.03) | $ 0.79 | |||
| (Loss) earnings per share, diluted | $ (0.18) | $ 0.43 | $ (0.03) | $ 0.76 | |||
| Weighted average common shares outstanding, basic | 95.6 | 94.6 | 95.4 | 94.4 | |||
| Weighted average common shares outstanding, diluted | 95.6 | 97.7 | 95.4 | 98.0 |
| TABLE 2 NEUROCRINE BIOSCIENCES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) | |||
| (in millions) | June 30, 2022 | December 31, 2021 | |
| Cash, cash equivalents and debt securities available-for-sale | $ 648.3 | $ 711.3 | |
| Other current assets | 371.0 | 261.5 | |
| Total current assets | 1,019.3 | 972.8 | |
| Deferred tax assets | 328.4 | 315.1 | |
| Debt securities available-for-sale | 405.2 | 560.7 | |
| Right-of-use assets | 92.2 | 97.2 | |
| Equity securities | 83.8 | 63.7 | |
| Property and equipment, net | 66.8 | 58.6 | |
| Other assets | 10.0 | 4.4 | |
| Total assets | $ 2,005.7 | $ 2,072.5 | |
| Total current liabilities | $ 285.7 | $ 245.8 | |
| Convertible senior notes | 169.0 | 335.1 | |
| Operating lease liabilities | 99.6 | 105.3 | |
| Other long-term liabilities | 28.0 | 12.3 | |
| Stockholders' equity | 1,423.4 | 1,374.0 | |
| Total liabilities and stockholders' equity | $ 2,005.7 | $ 2,072.5 |
| TABLE 3 NEUROCRINE BIOSCIENCES, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS (unaudited) | |||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||
| (in millions, except per share data) | 2022 | 2021 | 2022 | 2021 | |||
| GAAP net (loss) income | $ (16.9) | $ 42.3 | $ (3.0) | $ 74.4 | |||
| Adjustments: | |||||||
| Stock-based compensation expense - R&D | 16.2 | 9.2 | 28.7 | 24.2 | |||
| Stock-based compensation expense - SG&A | 33.3 | 19.4 | 57.8 | 37.3 | |||
| Loss on extinguishment of convertible senior notes 1 | 70.0 | — | 70.0 | — | |||
| Non-cash interest related to convertible senior notes | 0.4 | 4.3 | 0.8 | 8.5 | |||
| Changes in fair value of equity security investments 2 | 7.4 | — | (12.5) | (0.7) | |||
| Income tax effect related to reconciling items 3 | (28.3) | (5.1) | (30.0) | (24.8) | |||
| Non-GAAP net income | $ 82.1 | $ 70.1 | $ 111.8 | $ 118.9 | |||
| Diluted earnings per share: | |||||||
| GAAP | $ (0.18) | $ 0.43 | $ (0.03) | $ 0.76 | |||
| Non-GAAP 4 | $ 0.84 | $ 0.72 | $ 1.14 | $ 1.21 |
| 1. | The Company recognized a loss on extinguishment of $70.0 million related to the partial repurchase of its convertible senior notes in the second quarter of 2022. |
| 2. | Reflects periodic fluctuations in the fair values of the Company's equity security investments. |
| 3. | Estimated income tax effect of non-GAAP reconciling items are calculated using applicable statutory tax rates, taking into consideration any valuation allowance and adjustments to exclude tax benefits or expenses associated with non-cash stock-based compensation and premium paid on repurchase of its convertible senior notes. |
| 4. | Non-GAAP diluted earnings per share for the three and six months ended June 30, 2022, reflect diluted shares of 98.2 million and 97.9 million, respectively, which were calculated in accordance with the guidance on earnings per share in ASC 260. |
| Note: Beginning in the third quarter of 2021, milestone payments received from licenses and collaborations, milestones paid related to licenses and collaborations, non-cash collaboration revenue, and acquired in-process research and development are no longer excluded from non-GAAP financial results. 2021 non-GAAP financial results have been updated for comparability to current year periods. |
| TABLE 4 NEUROCRINE BIOSCIENCES, INC. RECONCILIATION OF GAAP TO NON-GAAP EXPENSES (unaudited) | |||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||
| (in millions) | 2022 | 2021 | 2022 | 2021 | |||
| GAAP R&D | $ 135.9 | $ 74.8 | $ 238.1 | $ 148.0 | |||
| Adjustments: | |||||||
| Stock-based compensation expense | 16.2 | 9.2 | 28.7 | 24.2 | |||
| Non-GAAP R&D | $ 119.7 | $ 65.6 | $ 209.4 | $ 123.8 | |||
| GAAP SG&A | $ 182.8 | $ 143.2 | $ 383.5 | $ 272.2 | |||
| Adjustments: | |||||||
| Stock-based compensation expense | 33.3 | 19.4 | 57.8 | 37.3 | |||
| Non-GAAP SG&A | $ 149.5 | $ 123.8 | $ 325.7 | $ 234.9 |
SOURCE Neurocrine Biosciences, Inc.