Mar 31, 2020

Neurocrine Biosciences Q1 2020 Earnings Report

Announced financial results for the first quarter ended March 31, 2020 and provided revised full-year 2020 financial expense guidance.

Key Takeaways

Neurocrine Biosciences reported strong first quarter 2020 results with INGREZZA net product sales of $231 million, representing a 69% year-over-year increase. The FDA approved ONGENTYS for Parkinson's disease, triggering a $20 million milestone. The company is in a strong financial position with over $1 billion in cash, cash equivalents and debt securities available-for-sale.

INGREZZA net product sales were $231 million, a 69% year-over-year increase.

ONGENTYS was approved by the FDA for Parkinson's disease, triggering a $20 million milestone.

GAAP net income was $37 million, or $0.39 per share, compared to a net loss of $102 million, or $1.12 per share in Q1 2019.

The company had over $1 billion in cash, cash equivalents and debt securities available-for-sale at the end of the quarter.

Total Revenue
$237M
Previous year: $138M
+71.3%
EPS
$0.82
Previous year: -$1.12
-173.2%
R&D Expense
$58.3M
Previous year: $37.7M
+54.6%
SG&A Expense
$118M
Previous year: $87.5M
+34.6%
Gross Profit
$235M
Previous year: $137M
+71.2%
Cash and Equivalents
$772M
Previous year: $72.8M
+960.3%
Free Cash Flow
$34.2M
Previous year: -$116M
-129.4%
Total Assets
$1.36B
Previous year: $958M
+42.2%

Neurocrine Biosciences

Neurocrine Biosciences

Neurocrine Biosciences Revenue by Segment

Forward Guidance

The company provided revised full-year 2020 financial expense guidance.

Positive Outlook

  • Increased investment in R&D programs.
  • Continued investment in INGREZZA.
  • Marketing costs associated with the anticipated launch of ONGENTYS.
  • Meaningful investments across early stage programs including Voyager and Xenon collaborations.
  • Studies ongoing in three registrational and four mid-stage programs by the end of 2020.

Challenges Ahead

  • GAAP-only guidance includes approximately $105 million of share-based compensation.
  • GAAP-only guidance includes a $20 million milestone to BIAL connected with the approval of ONGENTYS by the FDA.
  • GAAP-only guidance does not include any other potential milestones.
  • GAAP-only guidance does not include in-process research and development costs associated with current collaborations.
  • GAAP-only guidance does not include in-process research and development costs associated with future business development activities.