Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of biotech company Neurocrine Biosciences
So what: For largely experimental research and development biotech companies, earnings reports tend to not have a huge effect on the price of the stock; today is a rare exception. For the quarter, Neurocrine reported a profit of $0.02 (which matched estimates) on revenue of $11.1 million. Most of Neurocrine's revenue is tied to milestone payments it receives from marketing partner Abbott Laboratories
Now what: Earnings aside, all eyes are really on elagolix, the company's phase 2 treatment for endometriosis. Developed in collaboration with Abbott, Neurocrine is targeting phase 3 clinical trials beginning in the first half of this year. It's these trials and not Abbott's erratic milestone payments that will wind up moving Neurocrine's stock. Until we get the results from these phase 3 clinical trials, I don't think you make a move either way on Neurocrine.
Craving more input? Start by adding Neurocrine Biosciences to your free and personalized watchlist so you can keep up on the latest news with the company.