Neurocrine Biosciences, Inc. (NBIX) Earnings & Analysis

Latest quarter

Neurocrine reported Q2 FY2026 revenue of $959.0 million, above the consensus of $901.5 million. Adjusted earnings per share were $2.85, compared with the consensus of $2.26.

Revenue rose 39.5% from $687.5 million a year earlier. Neurocrine’s filing attributed increased product sales to CRENESSITY, higher INGREZZA prescriptions and the addition of VYKAT XR following its May acquisition of Soleno. On the call, Chief Commercial Officer Eric Benevich reported quarterly INGREZZA sales of $716 million and CRENESSITY sales of $184 million.

Neurocrine’s gross margin was 97.6%, down from 98.5% a year earlier, while its operating margin fell to 15.8% from 21.2%. The filing described acquisition-related expenses and continued investment in the commercial organization and clinical portfolio. Diluted earnings per share rose to $1.39 from $1.06, and free cash flow increased to $128.6 million from $89.5 million.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

Chief Commercial Officer Eric Benevich said INGREZZA’s quarterly sales reflected highs in new patient starts and total prescriptions. He said Neurocrine was focused on awareness and diagnosis of tardive dyskinesia, as well as educating providers and supporting reimbursement. Benevich added that INGREZZA had outgrown the VMAT2 market in the quarter and that he expected coverage to support continued adoption in 2027 and 2028.

For CRENESSITY, Benevich described a steady pace of new patient starts, persistence and compliance, and favorable reimbursement. He said adoption spanned adult and pediatric patients and several types of endocrinology practice. The prescriber base had “nearly tripled compared to 1 year ago,” he said, and Neurocrine estimated that about 15% of the addressable patient population was on treatment. Benevich added that over 90% of patients paid $10 or less per month.

Asked about VYKAT XR, Benevich said second-quarter results aligned with expectations formed during acquisition diligence. He said new patient starts remained steady, the prescriber base expanded and discontinuations tracked expectations after the initial group of patients began therapy. CEO Kyle Gano said Neurocrine expected the eventual discontinuation rate to settle in the 25 to 30 percent range seen with other orphan medicines. He also said the team was working on education around weight-based titration and expectations for improvement in hyperphagia, which can take months.

Gano said Neurocrine remained on track for 2027 Phase 3 data readouts for osavampator in major depressive disorder and direclidine in schizophrenia. Discussing longer-term investment, he said Phase 3 trials would wind down as the pipeline shifted toward earlier-stage programs.

Guidance

In its July results release, Neurocrine raised its full-year 2026 INGREZZA net product sales guidance to $2.825 billion to $2.875 billion, from $2.7 billion to $2.8 billion. Chief Commercial Officer Eric Benevich also described the full-year guidance as increased on the earnings call.