Neurocrine Biosciences shares drop as trial failures may 'stunt momentum,' analysts say

By Eleanor Laise

Company will halt development of experimental depression treatment

Neurocrine Biosciences Inc. shares (NBIX) fell 4.7% premarket on Friday after the company on Thursday announced two clinical trial failures.

An experimental epilepsy treatment failed to meaningfully reduce the frequency of seizures in a phase 2 study, and Neurocrine will stop developing the drug for focal onset seizure, the company said. An investigational treatment for anhedonia, or inability to feel pleasure, in major depressive disorder also failed to meet its primary goal in a phase 2 trial, the company said. No further development with that drug, a collaboration with Takeda Pharmaceutical Co. Ltd. (TAK), is currently planned, Neurocrine said.

"We are disappointed with the outcome of these studies, but remain fully committed to finding new treatment options for patients living with serious neurological and neuropsychiatric disorders, including epilepsy and major depressive disorder," Dr. Eiry Roberts, Neurocrine's chief medical officer, said in a statement.

The trial results "remind us of the riskiness of Neurocrine's broader pipeline," BMO Capital Markets analyst Evan David Seigerman wrote in a report Thursday, noting that the failures are "likely to stunt momentum." Seigerman cut his target price for Neurocrine shares to $100, from $111 previously.

Neurocrine is also reviewing the focal onset seizure study data to assess any potential implications for its ongoing study in a rare genetic epilepsy syndrome called SCN8A-developmental epileptic encephalopathy, the company said.

Neurocrine shares are down 6.1% in the year to date, while the S&P 500 has gained 13.2%.

-Eleanor Laise

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

11-10-23 0859ET

Copyright (c) 2023 Dow Jones & Company, Inc.