Neurocrine Biosciences' drug pipeline is approaching a rough patch and the company will soon be knocking on the “doors of the blue chip club,” according to Wells Fargo. Analyst Mohit Bansal upgraded shares to overweight from equal weight, raising the price target to $170 from $140, suggesting a potential upside of about 21% from Tuesday's close. Bansal expects the company's treatment for congenital adrenal hyperplasia, Crinecerfont, to generate $1.5 billion in peak sales, beating his previous estimate of $1.1 billion. “Crinecerfont alone is sufficient to make the case for purchase,” Bansal wrote in a note on Tuesday. “We believe the Crinecerfont (opportunity) is underappreciated given that the Street only gives credit to peak opportunities in the $500-$700 million range.” Elsewhere in the company's pipeline, Neurocrine's depression drug NBI-1065845, developed in collaboration with Japanese pharmaceutical company Takeda, showed positive results during a phase 2 trial. Bansal said this drug could open a “whole new chapter” of sales opportunity of up to $1.2 billion. NBI-'845 could be “another great opportunity,” Bansal said, citing the once-daily administration of the treatment as a factor in his evaluation. Competing treatments are taken twice a day, he said. Shares are up about 6% in 2024. The stock is up about 35% over the past 12 months. — CNBC's Michael Bloom contributed to this report.
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Wells Fargo has become bullish on this biotech company
