Competitor disappointments bode well for Neurocrine, says BofA

BofA notes that BridgeBio Pharma (BBIO) announced they did not view the topline results for their open label phase 1/2 study of BBI-631 gene therapy in congenital adrenal hyperplasia, or CAH, as transformational for CAH patients given current treatment options, so the company has decided to discontinue capital investment in the program at this time. The firm also notes this is “the second disappointing announcement for a CAH competitor” following lackluster phase 2 data for Spruce Bioscience’s (SPRB) tildacerfont earlier this year. Taken together, the firm thinks this bodes well for the competitive profile of Neurocrine’s (NBIX) crinecerfont in CAH. The firm maintains a Buy rating and $171 price target on Neurocrine ahead of the U.S. regulatory decision in December, as the firm also reiterates its view that the recent stock selloff was largely overdone given the commercial Ingrezza franchise contributes $141 per share to its valuation and the crinecerfont opportunity in CAH contributes $11 per share.