Neurocrine Biosciences (NBIX) update #11

Yet another quarter is in the books for our biotech play Neurocrine Biosciences (NBIX), and once again not much has changed: the company is still conducting three phase 2 trials of their GnRH antagonist candidate drug for fighting endometriosis, elagolix, still supposedly looking for a partnership for completing the development of—and then marketing—that drug, still awaiting FDA feedback on their failed insomnia remedy drug, indiplon so they can officially put it to sleep, and still producing red ink—$28.9 million in 4Q08 compared to $128.0 million in 4Q07 and a loss of $88.6 million in 2008 compared to a loss of $207.3 million in 2007. According to today’s press release, “[t]he decrease in net loss is primarily the result of a one-time write down in 2007 of $94.0 million for asset impairment related to a prepaid royalty, coupled with the fourth quarter of 2007 restructuring and ongoing cost control measures throughout 2008.”

They now have $118MM of cash and are anticipating spending between $50 and $55 million in 2009, by the end of which all the Phase 2 trials should be completed. If the results are good enough to warrant Phase 3 trials, they will need more funding for those and to get them through 2011. Possibly some of that may come from the elusive partnership with a Big Pharma company they are still seeking, but most likely more stock will have to be sold.