Neurocrine Biosciences Inc Q2 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Tazeen Ahmad - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Hi guys, good afternoon, thanks for taking my question. So mine, I think, is going to be for Matt. Matt, we know that you're super detail-oriented. But taking that into account, you're narrowing the top end of guidance by $50 million. And we've still got half of the year left. And, you know, I fully appreciate the comments that you made about having mid-year ads and improving access on Medicare, but I guess how are you triangulating that level of certainty? And is that number potentially up for future adjustment as the year progresses? Thanks.

Question: Philip Nadeau - Cowen and Company LLC - Analyst : Good morning or good afternoon. Thanks for taking our question. Congrats on the CRENESSITY number. It does seem to be launching much more quickly than most of us had anticipated. Can you talk about the dynamics you're encountering at the clinics? In particular, were there any boluses of patients added to CRENESSITY during the quarter? Any reason why we shouldn't extrapolate the growth we saw in Q2 to future quarters, or any other dynamics that we should consider as we try to digest the big number you just put up and what that portends for future quarters? Thanks.

Question: Cory Kasimov - Evercore Inc - Analyst : Hey, good afternoon, guys. Thanks for taking the question. Wanted to follow up on Eiry's earlier comment on the adult OLE program and patients rolling from that over to commercial product. Are you able to provide any more granularity there in terms of percentage of patients that have moved over, and whether you would expect the rest to follow suit? Are there any nuances in this process that would perhaps prevent them from doing so? Thank you.

Question: Jay Olson - Oppenheimer & Co Inc - Analyst : Congrats on the Crenessity launch success, and thank you for providing this update. I wanted to thank Eiry for her substantial contributions and wish her all the best. And I also wanted to welcome Sanjay, so congratulations on joining the team. And could you please share with us some of the key findings that you learned from your due diligence that attracted you to Neurocrine? Thank you.

Question: Brian Abrahams - RBC Capital Markets - Analyst : Hey, good afternoon. Thanks for taking my question. I'm curious if you could talk about what steered your decision to contract INGREZZA mid-year? How long these contracts -- we should think about these contracts generally being in place for? And should we not expect now additional contracting shortly after the new IRA prices established for your competitor? Thanks.

Question: Anupam Rama - JPMorgan Chase & Co - Analyst : Hey guys. Thanks so much for taking the question and congrats on the CRENESSITY launch. Quickly on the valbenazine schizophrenia update. What are you learning from that study on VMAT2 mechanism in schizophrenia, target population considerations or trial design considerations that you look to the next-gen VMAT2? Thanks so much.

Question: Brian Skorney - Robert W. Baird & Co Inc - Analyst : Hey, good afternoon, everyone, and, thank you for taking the question. Also in CRENESSITY, congrats on another strong quarter. So hoping you could maybe give us a little more detail on the derivation of that figure. Is there any inventory dynamic in this quarter? And can you disclose the number of build prescriptions represented here? It just seems hard to calculate more than like 2,000 TRx in the quarter given the patient start forms and reimbursement numbers you gave us, which puts the net TRx somewhere in the high 20,000 range. I guess, are we in the right ballpark with those numbers? And how do you think about pricing going forward, both on sort of gross to net and mix of adult and pediatrics? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 30, 2025 / 8:30PM, NBIX.OQ - Q2 2025 Neurocrine Biosciences Inc Earnings Call

Question: Corinne Johnson - Goldman Sachs Group Inc - Analyst : Hey, good afternoon, everyone. I wanted to ask on the reimbursement process from here. When do you anticipate transitioning to more of a formulary-driven process? How do you anticipate that could impact net pricing on CRENESSITY? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 30, 2025 / 8:30PM, NBIX.OQ - Q2 2025 Neurocrine Biosciences Inc Earnings Call

Question: Danielle Brill - Truist Securities - Analyst : Hey guys, good afternoon. Thanks for the question. You mentioned some of the data that you presented at ENDO. And I was just curious about some of the feedback that you received there from the prescribing community, specifically as it relates to like the change in glucocorticoid at one year remaining relatively flat versus 24 weeks and how we should think about that? And then same thing on the insulin resistance data that you presented. It seems like we don't see further benefits beyond 12 months. Is there anything to read into there? Or why might that be? And then at any point in time, will we see any additional clinical data, such as bone age data or other benefits from lowering steroid doses?

Question: Ashwani Verma - UBS AG - Analyst : Hi, thanks, for my question. Just a quick one on CRENESSITY formulary commentary that you made. So I don't know of the reimbursement for a six-month or one-year basis. And then when CRENESSITY is up for reauthorization for these patients, would that require steroid dose reduction based on what you can tell right now?

Question: Marc Goodman - Leerink Partners LLC - Analyst : Yeah, Matt, just to confirm, this negative 5% INGREZZA ASP comment for the year, is this a full year impact because I'm kind of assuming that the second half is lower than the first half for ASP. So when you say there's no change for ASP in 2026, are you referring to the full year ASP? Are you filing to where you actually are kind of ending the year, which is lower than kind of the average for the year, if you understand my question.

Question: Myles Minter - William Blair Capital Partners - Analyst : Hey, thanks for taking the question. Can you just remind us of the discontinuation rates for CRENESSITY and the one-year open-label extensions for the pediatric and the adult studies? And is that still probably the best proxy we have for the annualized retention rates on CRENESSITY in the real world? Or are there other key factors we have to consider for potential basis?

Question: David Huang - Deutsche Bank AG - Analyst : Hi there, congrats on the quarter and thanks for taking my questions. So first, I just wanted to ask, in terms of INGREZZA. So a competitor, so Teva reported this morning, I believe, they raised their guidance for their product standout for the year. Is there anything to maybe read into that as pertains to the relative growth of INGREZZA versus your competitors this past quarter and market share in terms of dollars? And then just quickly on CAH, I think you talked about 20,000 prevalent patients in the US, do we have a sense of what percentage is regularly followed in clinics maybe from things like medical claims data? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 30, 2025 / 8:30PM, NBIX.OQ - Q2 2025 Neurocrine Biosciences Inc Earnings Call

Question: Sumant Kulkarni - Canaccord Genuity Corp - Analyst : Good afternoon. Thanks for taking my question which is science-based, but could have significant strategic stock implications. You have several years of internal experience in CRF-1 receptor antagonist, corticotropin is involved in stress response and there's some intriguing external preclinical data on binge eating and this approach. Now that you've presented one year data on weight related effects of CRENESSITY at ENDO, what are your thoughts on using this approach specifically for weight loss, especially as you have a longer-acting version in the works, which could help in compliance in that setting?

Question: Michael Riad - Morgan Stanley & Co Ltd - Analyst : hI. This is Michael Riad on for Sean Laaman. Thank you for taking our question. For INGREZZA, could you comment on the current volume split between the neurology, psychiatry, and long-term care channel. And regarding the double-digit volume growth that you expect this year, could you provide any more color on respective contributions to that volume growth from the respective channels?

Question: Laura Chico - Wedbush Securities Inc - Analyst : Thanks very much for taking the question. On CRENESSITY, I wanted to dive into a little bit more about the cadence of prescribing. And kind of just clarifying one, have the majority of patients transitioned from studies to paid script status at this point? And two, as we're thinking about increasing breadth of prescribing. I guess, is there kind of an upper limit as to how many patients physicians are going to be able to manage on CRENESSITY? I guess is there any capacity constraints that you can share?

Question: Evan Segerman - BMO Capital Markets - Analyst : Hi guys, thank you so much for taking my question. I want to touch on some of the thinking behind moving '568 into Phase 3. I know the the Phase 3 trial and see a dose response. Maybe walk me through what you were able to get in the data to give you confidence in moving to this larger Phase 3 program. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 30, 2025 / 8:30PM, NBIX.OQ - Q2 2025 Neurocrine Biosciences Inc Earnings Call