NBIX -- Contrarian Alert!
Neurocrine Biosciences, Inc. (NASD NBIX @$7.70) discovers,
develops and intends to commercialize drugs for the treatment
of neurological and endocrine-related diseases and disorders.
The Company's product candidates address pharmaceutical
markets in the world, including insomnia, anxiety,
depression, various female and male health disorders,
multiple sclerosis, diabetes and other neurological and
endocrine related diseases and disorders. The Company has
nine programs in various stages of research and
development, including seven programs in clinical
development. While the Company independently develops many of
its product candidates, it has entered into collaborations
for three of its programs. The Company's lead clinical
development program, Indiplon, is a drug for the treatment of
insomnia. It has submitted two New Drug Applications (NDAs)
to the United States Food and Drug Administration (FDA) with
respect to Indiplon. Pfizer Inc's announced last week its
decision to end its collaboration with Neurocrine after the
FDA rejected a high-dose version of Indiplon and asked for
more information on two lower dose versions.
Market Cap (intraday): 292.33M
Price/Sales (ttm): 3.88
Price/Book (mrq): 1.15
Revenue (ttm): 107.58M
Net Income Avl to Common (ttm): -51.11M
Total Cash (mrq): 234.32M
Total Cash Per Share (mrq): 6.188
Total Debt (mrq): 56.45M
Book Value Per Share (mrq): 9.554
% of Shares Held by Institutional
(including leading deal makers Goldman Sachs
and Morgan Stanley) & Mutual Fund Owners: 84%
(http://finance.yahoo.com/q/ir?s=NBIX)
52-Week High (16-Mar-06): 73.13
52-Week Low (03-Nov-06): 7.51
Shares Short (as of 10-Oct-06)3: 6.64M
Insiders' and instutional support: Most insiders'
recent option awards range from $5 - $10 per share,
and options exercise range from $5 - $7 per share.
Capitulated Volume: NBIX traded 11,003,524 shares
on Nov. 3 vs. a 3-month daily average of 1,138,940 shares.
*Potential acquisition target + insiders and
instiutional support + capitualted volume = Timely
contrarian investment with favorable risk/reward
potential.
* After reviewing all the relevant information regarding
Indiplon, we believe that the drug works well in low dosages -
- just needs more info for approval, though this may take a
couple of years. NBIX should be a welcome addition to a big
pharma co who desperately needs a sleeping pill to counter
the competition. NBIX's Indiplon is way past phase 3- this is
pre approval stuff. Besides Indiplon, NBIX has eight other
clinical development programs, and two other pipeline drugs,
such as NBI-56418 and Urocortin 2. Considering NBIX has net
cash of $4.7 per share and book value of $9.5 per share, we
consider NBIX an attractive acquisition candiate in the bio-
tech industry.
Weekly Chart: stockcharts.com
s=NBIX&p=W&b=5&g=0&id=p40114836980
pcyhuang |
