Neurocrine Biosciences NBIX Soars 8.36% on FDA Phase 3 Program

Neurocrine Biosciences Inc. (NBIX) surged 8.36% today, marking its third consecutive day of gains, with a cumulative increase of 11.57% over the past three days. The share price reached its highest level since February 2025, with an intraday gain of 18.87%.

The strategy of buying NBIX shares after they reached a recent high and holding for one week resulted in poor performance over the past five years. The strategy yielded a return of -9.56%, significantly underperforming the benchmark return of 39.28%. The excess return was -48.85%, and the CAGR was -4.30%, indicating a decline in value. The strategy also had a Sharpe ratio of -0.50, a maximum drawdown of -13.65%, and a volatility of 8.67%, highlighting its high risk and negative returns.

Neurocrine Biosciences' stock price has been driven by several key developments. The company announced significant advancements with the FDA, including the initiation of a Phase 3 program for NBI-1117568, a drug targeting schizophrenia treatment. This move follows successful Phase 2 results, generating excitement among investors.

The company's strong financial performance also played a crucial role in the stock's upward trajectory. Neurocrine reported first-quarter 2025 net product sales for INGREZZA® (valbenazine) amounting to $545 million and reaffirmed its annual sales guidance of $2.5 - $2.6 billion. Additionally, the company exceeded revenue expectations with $572.6 million, showcasing its operational resilience and growth potential.

Positive market reactions to Neurocrine's Q1 performance further boosted investor confidence. The revenue surprise of 2.25% and promising drug trial results contributed to after-hours stock surges and increased retail chatter.

Analysts have also shown optimism towards Neurocrine Biosciences. Canaccord raised its price target for the company from $158 to $160, maintaining a Buy rating. This reflects a positive outlook from analysts, further supporting the stock's upward momentum.