AbbVie Inc (ABBV), AstraZeneca plc (ADR) (AZN): Neurocrine Biosciences, Inc. (NBIX) Nosedives on Mid-Stage Study Results

Elagolix — which is a gonadotropin-releasing hormone, or GnRH, antagonist — could offer several benefits compared to current GnRH agonists on the market. Agonist drugs such as AbbVie Inc (NYSE:ABBV)’s Lupron and AstraZeneca plc (ADR) (NYSE:AZN)‘s Zoladex must be injected, while elagolix is administered orally. These drugs typically take much longer to work than a GnRH antagonist like elagolix does. Worst of all, unlike GnRH antagonists, the agonist drugs can actually make conditions worse by causing a hormonal flare.

Some think that elagolix could reach peak annual sales approaching $1.5 billion if the drug is approved for both endemetriosis and uterine fibroids. It’s always smart to take these peak sales projections with a grain of salt, but the drug does appear to have reasonable potential for commercial success if approved — especially with AbbVie Inc (NYSE:ABBV)’s sales force behind it.

The bottom line is that less-than-stellar results on NBI-98854 don’t mean the end of the world for Neurocrine Biosciences, Inc. (NASDAQ:NBIX) by a long stretch. A 30% plunge in the stock price could present a buying opportunity for investors comfortable with the inherent risks associated with small biotech companies.

The article Neurocrine Nosedives on Mid-Stage Study Results originally appeared on Fool.com and is written by Keith Speights.

Fool contributor Keith Speights has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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