Analyst Comments Spur NeurocrineTuesday, March 20, 2012
Shares of Neurocrine Biosciences Inc. rose Friday after an analyst began covering the stock with a “Buy” rating, saying that Wall Street is underestimating the company’s drug candidate elagolix.
Deutsche Bank analyst Robyn Karnauskas initiated coverage of Neurocrine with a “Buy” rating and price target of $15 per share. She said investors are focused on elagolix’s potential as a treatment for endometriosis, or excessive growth of the uterine lining, but are overlooking its potential as a treatment for uterine fibroids, or benign growths in the uterus.
Karnauskas said sales of elagolix in endometriosis could surpass $1 billion per year, and approval of the drug as a treatment for uterine fibroids could add hundreds of millions in additional sales.