Wall Street investment bank Leerink Partners on Tuesday raised its price target for San Diego’s Neurocrine Biosciences (Nasdaq: NBIX) from $18 to $23 per share after last month’s release of positive data on its proposed treatment for tardive dyskinesia, a disease characterized by involuntary muscle movements.
Leerink reiterated an "outperform" rating on the stock, which rose more than 3.5 percent by mid-morning in New York to around $16.77 per share.
In a column late last month, Motley Fool health care analyst Sean Williams said Neurocrine “should remain high on investors' watchlists” following the phase 2b study of NBI-98854, its proposed tardive dyskinesia treatment.
Williams said analysts estimate that if the drug is approved for the market, its sales could range between $500 million and $700 million.
“Given that the company is valued at roughly two times these estimates, some investors would perceive Neurocrine to be fully valued here,” he said. But he added that since Neurocrine currently has no competition in its niche, he believes that the current estimates may be a little low.