Despite positive results, questions remain for Neurocrine Biosciences

|About: Neurocrine Biosciences,... (NBIX)|By:, SA News Editor

Neurocrine Biosciences (NBIX) reported positive results from its Phase IIb KINECT2 trial assessing NBI-98854 (VMAT2 inhibitor) in tardive dyskinesia Monday. Shares rose 1.1%.

The announcement was a surprise, Oppenheimer notes, after management tempered investors’ expectations given potentially insufficient ‘854 dosing (25-75mg QD). Management attributed KINECT2’s success to its modified AIMS instrument to score disease severity.

"While KINECT2’s success is encouraging, we remain skeptical about whether NBIX’s AIMS troubles are truly resolved, and whether the FDA will accept what we believe is an inconsistent, apples-to-oranges Ph.II dataset for advancement to Ph.III. We maintain our view that elagolix, not '854, is the key reason to own NBIX," firm says.