Full Press Release Details
INGREZZA ® (valbenazine) Third Quarter Net Product Sales of $486 Million Representing 29% Year-Over-Year Growth
INGREZZA ® (valbenazine) 2023 Net Product Sales Guidance Raised to $1.82 - $1.84 Billion
Crinecerfont Adult and Pediatric CAHtalyst TM Studies Met Primary Endpoint and Key Secondary Endpoints for the Treatment of Congenital Adrenal Hyperplasia
Analyst Day on December 5th Focused on R&D Portfolio and Strategy
SAN DIEGO , Oct. 31, 2023 /PRNewswire/ -- Neurocrine Biosciences, Inc. (Nasdaq: NBIX ) today announced its financial results for the third quarter ended September 30, 2023, raised 2023 net sales guidance for INGREZZA, and announced an Analyst Day to be held in New York City on December 5th .
"With INGREZZA sales continuing to grow, an expanded indication to treat chorea associated with Huntington's disease, and positive Phase 3 results in congenital adrenal hyperplasia, Neurocrine remains well positioned to build a leading neuroscience-focused company," said Kevin Gorman , Ph.D., Chief Executive Officer of Neurocrine Biosciences. "We look forward to sharing more insight into our R&D portfolio and strategy at our December Analyst Day."
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
| (unaudited, in millions, except per share data) | 2023 | 2022 | 2023 | 2022 | |||
| Revenues: | |||||||
| Net Product Sales | $ 491.8 | $ 379.3 | $ 1,353.4 | $ 1,036.3 | |||
| Collaboration Revenue | 7.0 | 8.6 | 18.5 | 40.4 | |||
| Total Revenues | $ 498.8 | $ 387.9 | $ 1,371.9 | $ 1,076.7 | |||
| GAAP Research and Development (R&D) | $ 142.2 | $ 107.7 | $ 427.5 | $ 345.8 | |||
| Non-GAAP R&D | $ 125.0 | $ 92.8 | $ 372.7 | $ 302.2 | |||
| GAAP Selling, General and Administrative (SG&A) | $ 204.2 | $ 186.3 | $ 668.7 | $ 569.8 | |||
| Non-GAAP SG&A | $ 169.7 | $ 158.1 | $ 563.4 | $ 483.8 | |||
| GAAP Net Income | $ 83.1 | $ 68.5 | $ 102.0 | $ 65.5 | |||
| GAAP Earnings Per Share – Diluted | $ 0.82 | $ 0.69 | $ 1.01 | $ 0.67 | |||
| Non-GAAP Net Income | $ 156.1 | $ 106.7 | $ 232.3 | $ 218.5 | |||
| Non-GAAP Earnings Per Share – Diluted | $ 1.54 | $ 1.08 | $ 2.31 | $ 2.22 | |||
| (unaudited, in millions) | September 30, 2023 | December 31, 2022 | |||||
| Total Cash, Cash Equivalents and Marketable Securities | $ 1,549.8 | $ 1,288.7 |
Third Quarter INGREZZA Net Product Sales Highlights:
Third Quarter 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 2023 INGREZZA Sales Guidance and Operating Expense Guidance:
| Range | |||
| (in millions) | Low | High | |
| INGREZZA Net Product Sales 1 | $ 1,820 | $ 1,840 | |
| GAAP R&D Expense 2 | $ 560 | $ 570 | |
| Non-GAAP R&D Expense 3 | $ 490 | $ 500 | |
| GAAP and Non-GAAP IPR&D 4 | $ 144 | $ 144 | |
| GAAP SG&A Expense 5 | $ 870 | $ 890 | |
| Non-GAAP SG&A Expense 3 | $ 740 | $ 760 |
| 1. | INGREZZA sales guidance for fiscal 2023 reflects expected sales of INGREZZA. |
| 2. | GAAP R&D guidance includes amounts for milestones that are probable of achievement or have been achieved. |
| 3. | Non-GAAP guidance adjusted primarily to exclude estimated non-cash stock-based compensation expense of $70 million in R&D and $125 million in SG&A. |
| 4. | IPR&D guidance reflects acquired in-process research and development once significant collaboration and licensing arrangements have been completed. IPR&D guidance includes $143.9 million associated with the new strategic collaboration with Voyager. |
| 5. | SG&A guidance range reflects increased spend following INGREZZA expanded indication to treat chorea associated with Huntington's disease and positive Phase 3 results in CAH. |
Conference Call and Webcast Today at 8:00 AM Eastern Time Neurocrine Biosciences will hold a live conference call and webcast today at 8:00 a.m. Eastern Time ( 5:00 a.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.
Neurocrine Biosciences' Analyst Day and Webcast on Tuesday, December 5, 2023 Neurocrine Biosciences will hold an Analyst Day in New York City on Tuesday, December 5, 2023 . A live video webcast will begin at 1:00 p.m. Eastern Time and can 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, chorea associated with Huntington's disease, Parkinson's disease, endometriosis* and uterine fibroids*, as well as a robust pipeline including multiple compounds in mid- to late-phase clinical development across our core 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, Twitter and Facebook. (* 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, loss on extinguishment of convertible senior notes, non-cash interest expense related to convertible debt, non-cash amortization expense related to acquired intangible assets, acquisition and integration costs, changes in fair value of equity security investments, changes in foreign currency exchange rates 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 September 30, | Nine Months Ended September 30, | ||||||
| (in millions, except per share data) | 2023 | 2022 | 2023 | 2022 | |||
| Revenues: | |||||||
| Net product sales | $ 491.8 | $ 379.3 | $ 1,353.4 | $ 1,036.3 | |||
| Collaboration revenue | 7.0 | 8.6 | 18.5 | 40.4 | |||
| Total revenues | 498.8 | 387.9 | 1,371.9 | 1,076.7 | |||
| Operating expenses: | |||||||
| Cost of revenues | 11.2 | 6.1 | 31.2 | 15.5 | |||
| Research and development | 142.2 | 107.7 | 427.5 | 345.8 | |||
| Acquired in-process research and development | — | — | 143.9 | — | |||
| Selling, general and administrative | 204.2 | 186.3 | 668.7 | 569.8 | |||
| Total operating expenses | 357.6 | 300.1 | 1,271.3 | 931.1 | |||
| Operating income | 141.2 | 87.8 | 100.6 | 145.6 | |||
| Other income (expense): | |||||||
| Interest expense | (1.1) | (1.2) | (3.5) | (6.0) | |||
| Unrealized (loss) gain on equity security investments | (40.1) | 11.1 | (0.6) | 23.6 | |||
| Loss on extinguishment of convertible senior notes | — | — | — | (70.0) | |||
| Investment income and other, net | 15.6 | 0.2 | 37.4 | 2.8 | |||
| Total other (expense) income, net | (25.6) | 10.1 | 33.3 | (49.6) | |||
| Income before provision for income taxes | 115.6 | 97.9 | 133.9 | 96.0 | |||
| Provision for income taxes | 32.5 | 29.4 | 31.9 | 30.5 | |||
| Net income | $ 83.1 | $ 68.5 | $ 102.0 | $ 65.5 | |||
| Earnings per share, basic | $ 0.85 | $ 0.72 | $ 1.05 | $ 0.69 | |||
| Earnings per share, diluted | $ 0.82 | $ 0.69 | $ 1.01 | $ 0.67 | |||
| Weighted average common shares outstanding, basic | 97.9 | 95.8 | 97.5 | 95.6 | |||
| Weighted average common shares outstanding, diluted | 101.1 | 99.0 | 100.6 | 98.3 |
| TABLE 2 | |||
| NEUROCRINE BIOSCIENCES, INC. | |||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||
| (unaudited) | |||
| (in millions) | September 30, 2023 | December 31, 2022 | |
| Cash, cash equivalents and marketable securities | $ 1,095.1 | $ 989.3 | |
| Other current assets | 554.8 | 464.2 | |
| Total current assets | 1,649.9 | 1,453.5 | |
| Deferred tax assets | 383.2 | 305.9 | |
| Debt securities available-for-sale | 454.7 | 299.4 | |
| Right-of-use assets | 80.8 | 87.0 | |
| Equity security investments | 132.8 | 102.1 | |
| Property and equipment, net | 68.8 | 58.6 | |
| Intangible assets, net | 34.9 | 37.2 | |
| Other assets | 43.1 | 25.0 | |
| Total assets | $ 2,848.2 | $ 2,368.7 | |
| Convertible senior notes | $ 169.9 | $ 169.4 | |
| Other current liabilities | 521.7 | 368.3 | |
| Total current liabilities | 691.6 | 537.7 | |
| Operating lease liabilities | 85.9 | 93.5 | |
| Other long-term liabilities | 68.6 | 29.7 | |
| Stockholders' equity | 2,002.1 | 1,707.8 | |
| Total liabilities and stockholders' equity | $ 2,848.2 | $ 2,368.7 |
| TABLE 3 | |||||||
| NEUROCRINE BIOSCIENCES, INC. | |||||||
| RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS | |||||||
| (unaudited) | |||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
| (in millions, except per share data) | 2023 | 2022 | 2023 | 2022 | |||
| GAAP net income | $ 83.1 | $ 68.5 | $ 102.0 | $ 65.5 | |||
| Adjustments: | |||||||
| Stock-based compensation expense - R&D | 17.2 | 14.9 | 54.8 | 43.6 | |||
| Stock-based compensation expense - SG&A | 30.6 | 28.2 | 101.4 | 86.0 | |||
| Loss on extinguishment of convertible senior notes 1 | — | — | — | 70.0 | |||
| Non-cash interest related to convertible senior notes | 0.2 | 0.2 | 0.6 | 1.0 | |||
| Non-cash amortization related to acquired intangible assets | 0.9 | — | 2.7 | — | |||
| Acquisition and integration costs - SG&A 2 | 3.9 | — | 3.9 | — | |||
| Changes in fair value of equity security investments 3 | 40.1 | (11.1) | 0.6 | (23.6) | |||
| Changes in foreign currency exchange rates | — | 3.4 | — | 3.4 | |||
| Income tax effect related to reconciling items 4 | (19.9) | 2.6 | (33.7) | (27.4) | |||
| Non-GAAP net income | $ 156.1 | $ 106.7 | $ 232.3 | $ 218.5 | |||
| Diluted earnings per share: | |||||||
| GAAP | $ 0.82 | $ 0.69 | $ 1.01 | $ 0.67 | |||
| Non-GAAP | $ 1.54 | $ 1.08 | $ 2.31 | $ 2.22 |
| 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 integration costs for contract terminations related to the Diurnal Group plc acquisition. |
| 3. | Reflects periodic fluctuations in the fair values of the Company's equity security investments. |
| 4. | 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. |
| TABLE 4 | |||||||
| NEUROCRINE BIOSCIENCES, INC. | |||||||
| RECONCILIATION OF GAAP TO NON-GAAP EXPENSES | |||||||
| (unaudited) | |||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
| (in millions) | 2023 | 2022 | 2023 | 2022 | |||
| GAAP cost of revenues | $ 11.2 | $ 6.1 | $ 31.2 | $ 15.5 | |||
| Adjustments: | |||||||
| Non-cash amortization related to acquired intangible assets | 0.9 | — | 2.7 | — | |||
| Non-GAAP cost of revenues | $ 10.3 | $ 6.1 | $ 28.5 | $ 15.5 | |||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
| (in millions) | 2023 | 2022 | 2023 | 2022 | |||
| GAAP R&D | $ 142.2 | $ 107.7 | $ 427.5 | $ 345.8 | |||
| Adjustments: | |||||||
| Stock-based compensation expense | 17.2 | 14.9 | 54.8 | 43.6 | |||
| Non-GAAP R&D | $ 125.0 | $ 92.8 | $ 372.7 | $ 302.2 | |||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
| (in millions) | 2023 | 2022 | 2023 | 2022 | |||
| GAAP SG&A | $ 204.2 | $ 186.3 | $ 668.7 | $ 569.8 | |||
| Adjustments: | |||||||
| Stock-based compensation expense | 30.6 | 28.2 | 101.4 | 86.0 | |||
| Acquisition and integration costs | 3.9 | — | 3.9 | — | |||
| Non-GAAP SG&A | $ 169.7 | $ 158.1 | $ 563.4 | $ 483.8 | |||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
| (in millions) | 2023 | 2022 | 2023 | 2022 | |||
| GAAP other (expense) income, net | $ (25.6) | $ 10.1 | $ 33.3 | $ (49.6) | |||
| Adjustments: | |||||||
| Loss on extinguishment of convertible senior notes | — | — | — | 70.0 | |||
| Non-cash interest related to convertible senior notes | 0.2 | 0.2 | 0.6 | 1.0 | |||
| Changes in fair value of equity security investments | 40.1 | (11.1) | 0.6 | (23.6) | |||
| Changes in foreign currency exchange rates | — | 3.4 | — | 3.4 | |||
| Non-GAAP other income, net | $ 14.7 | $ 2.6 | $ 34.5 | $ 1.2 |
SOURCE Neurocrine Biosciences, Inc.