Neurocrine BiosciencesNBIX

Revenue reached about $959 million last quarter, which was higher than analysts expected and a 39 percent jump from a year ago. While the company earned $1.39 per share, less than the $1.65 analysts predicted, the focus is on the strong demand for its main drug, Ingrezza. Management raised its sales forecast for that drug to as much as $2.88 billion for the year.

This growth is important because it provides the cash the company needs to develop new treatments. It recently finished buying Soleno Therapeutics and is looking toward 2027 for results from studies on new medicines for depression and schizophrenia. If these succeed, they could help the company move beyond its reliance on a single product.

See the full quarter, and how our tracked metrics did

Source: 8-K filing

Key highlights

• Ingrezza sales growth sustained: Net sales for the company's lead drug, Ingrezza, grew 15% to $716 million this quarter, maintaining steady demand as the treatment for movement disorders matures. This growth was driven by record levels of new patients starting the therapy during the three month period.
• New drug launches accelerate: The company recorded $184 million in sales for its new adrenal treatment, Crenessity, while its recently acquired drug Vykat XR contributed $54 million in just over a month of sales. These successful launches helped total revenue grow 39% compared to the same time last year, diversifying the business away from a single product.
• Acquisition costs hit earnings: Reported earnings were $1.39 per share, which was lower than the $1.65 analysts expected, largely due to one-time costs from buying Soleno Therapeutics for $2.9 billion in May. These costs included $60.1 million to speed up employee stock payments and $45 million in other integration expenses.
• Research and development expansion: Spending on research and development rose to $327 million, making up 34% of total revenue this quarter compared to roughly 35% a year ago. The company is using this money to fund expensive late-stage clinical trials for potential new treatments for depression and schizophrenia.
• Sales guidance raised higher: Management increased its full year sales outlook for Ingrezza to a new range of $2.825 billion to $2.875 billion, up from the previous top end of $2.8 billion. This higher target shows confidence that the drug still has room to grow even as the company launches newer medicines.

Our take: This was a strong quarter that proved the company can successfully launch new drugs while keeping its main business growing. While the heavy spending on an acquisition and new clinical trials caused an earnings miss, the 39% jump in total revenue shows the strategy is working. This performance strengthens the long-term case for the company as it evolves into a multi-product powerhouse.