Wednesday, May 26, 2010

Neurocrine Biosciences Inc. (NBIX) Finds Solid Test Results for its Latest Pain Product, Continues Testing a Full Product Pipeline

In the bioscience world, a company’s existence is found in its product pipeline. In this respect, a constant flow of product at the various levels of approvals leads to a stable revenue flow and growth. If an investor can find a company that has positioned itself in this way, profit is sure to follow.

Neurocrine Biosciences Inc., a bioscience company that develops and markets pharmaceutical products directed at endocrinology oriented issues, operates across many differing product classes. Chief among these areas are pain, anxiety, depression, diabetes and insomnia. Given the breadth of this area, there are quite a few other afflictions where the company is pursuing development work with several at the Phase II testing stage.

Perhaps the company’s most recent success is its pain product elagolix. The product helps to address pelvic pain during menstruation and intercourse. Although this particular product is still in the test phase, it does demonstrate the company’s product pipeline is moving fairly quickly toward Phase III testing and product introduction. Other Phase II products include a mood disorder product and a cardiovascular product. Additional products along the company’s development stream are currently in Phase I testing indicating that one might safely assume a fairly constant revenue base. In terms of marketing, manufacturing and distribution, the company’s association with GlaxoSmithKline and Japan’s Dainippon Sumitomo Pharmaceuticals will also help as the products are approved.

As one might suspect, the company’s first quarter revenue results were not all that remarkable as the testing process for its pipeline products continue. It does, however, report that each area being worked is on track and on schedule. Product development timelines indicate 9 months to a year as approvals are reached. In a general way, Neurocrine Biosciences appears to have its timing set for product release as the world economy begins to exit its current situation. This is a statement of pure speculation but one that may well bode well for a company poised to break out toward solid profit.

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