Neurocrine Biosciences' (NBIX -0.12%) 30% plunge earlier this year during the coronavirus-fueled market meltdown is practically all but forgotten now. The stock was up around 15% as of the market close on Monday.

But Neurocrine's shares are now likely to go even higher. The biotech announced its second-quarter results after the market closed on Monday. Here's what you need to know about Neurocrine's impressive Q2 update.

Two scientists in a lab with one looking through a microscope

Image source: Getty Images.

By the numbers

Neurocrine reported revenue of $302.4 million in the second quarter, a 65% increase from the $183.5 million reported in the prior-year period. This result also blew past the average analysts' revenue estimate of $260.5 million. 

The company announced Q2 net income of $80 million, or $0.81 per share, based on generally accepted accounting principles (GAAP). This marked a significant improvement from Neurocrine's GAAP earnings of $51 million, or $0.54 per share, in the same period in 2019.

Neurocrine recorded adjusted net income in the second quarter of $139 million, or $1.42 per share. This doubled the company's adjusted earnings of $67 million, or $0.71 per share, posted in the second quarter of last year. It also trounced the consensus Wall Street adjusted earnings estimate of $0.73 per share.

Behind the numbers

Most of Neurocrine's impressive revenue growth in Q2 was driven by Ingrezza. Sales of the drug, which treats neurological disorder tardive dyskinesia, soared 48% year over year to $267.6 million.

Neurocrine also reported $34.8 million in collaboration revenue in the second quarter. In the prior-year period, the company's collaboration revenue totaled only $3 million. Most of the increase stemmed from a $30 million milestone payment from AbbVie associated with FDA approval for Oriahnn (elagolix) in treating uterine fibroids.

In addition to its stellar financial results, Neurocrine also made significant progress that should boost its revenue going forward. The company won FDA approval for Ongentys in treating Parkinson's disease in April. In May, Neurocrine exercised its option with Iorsia Pharmaceuticals to license the global rights to NBI-827104, which is a potential treatment for a rare type of pediatric epilepsy. It also licensed several of Takeda's schizophrenia, depression, and anhedonia candidates in early to-mid-stage testing.

Looking ahead

Neurocrine didn't provide revenue guidance for full-year 2020. However, it seems realistic to expect continued momentum for Ingrezza in the second half of the year. The company could also begin to see small initial royalties from AbbVie's sales of Oriahnn that grow over time.

On the other hand, Neurocrine did give a revised outlook related to its full-year 2020 expenses. It now anticipates combined GAAP research and development (R&D) and selling, general, and administrative (SG&A) expenses will be between $850 million and $900 million, up from its previous guidance range of $675 million to $725 million. The company also projects full-year 2020 non-GAAP R&D and SG&A expenses will be between $570 million and $610 million, compared to the range of $550 million to $600 million provided in its previous outlook.

One of the most important things to watch with the biotech stock in the next few quarters is the impact of sales of Ongentys. Neurocrine expects to launch the drug later this year.