10 Most Promising Biotech Stocks According to Hedge Funds

3. Neurocrine Biosciences, Inc. (NASDAQ:NBIX)

Average Upside: 48.02%

Number of Hedge Fund Holders: 56

Neurocrine Biosciences, Inc. (NASDAQ:NBIX), based in San Diego, California, is a biopharmaceutical company focused on neuroscience. It aims to develop transformative treatments for patients with under-served neurological, neuroendocrine, and neuropsychiatric disorders.

RBC Capital recently reiterated its Sector Perform rating on Neurocrine Biosciences, Inc. (NASDAQ:NBIX), maintaining a price target of $133. The firm’s outlook addressed the recent challenges facing the stock, citing disappointing Phase II trial results for its schizophrenia drug candidate ‘568 and a slowdown in prescription trends for Ingrezza, Neurocrine’s key revenue driver. Despite these setbacks, RBC Capital remains optimistic about Ingrezza’s long-term growth potential and expects the company to meet its 2024 sales targets.

Neurocrine Biosciences, Inc. (NASDAQ:NBIX) also reported positive interim results from the KINECT-HD2 study, showing sustained improvements in treating Huntington’s disease chorea with Ingrezza capsules through Week 104, regardless of patients’ use of antipsychotic medication. Ingrezza sales also grew over 30% year-over-year, prompting the company to raise its sales guidance to between $2.25 billion and $2.3 billion for 2024.

By the end of Q2 2024, 56 hedge funds tracked by Insider Monkey had invested in Neurocrine, with Jim Simons’ Renaissance Technologies holding the largest stake at $339.79 million.