Jason Napodano, CFA
Research analyst, medium-term horizon, biotech, small-cap

2 Biotechs Race To Treat Movement Disorders

Two San Diego-based biotech companies are poised to battle in a potentially very lucrative area of central nervous system movement disorders based on improving the dosing, safety and tolerability of a 60-year old drug. That drug is tetrabenazine, and the two companies are Neurocrine Biosciences (NASDAQ:NBIX) and Auspex Pharmaceuticals (NASDAQ:ASPX). Below we provide a brief background on tetrabenazine, take a detailed look at Neurocrine's and Auspex' respective improved versions of the drug, the indications for which these two companies are pursuing, and lay out potential sales opportunities for investors. Our conclusion is that both companies have significant upside based on developing new forms of tetrabenazine and represent good investments at today's level.

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