Neurocrine Biosciences Plummets on Drug Trial Failure

Jacob Harper |

Neurocrine Biosciences Inc (NBIX) experienced a significant setback on Sept. 8 when the company revealed a lower dose of a drug designed to treat a rare involuntary muscle movement disorder had failed to produce positive results. While the drug manufacturer plans on attempting a new trial of the drug with double the previously administered dose, the failure of the Phase IIb trial is unquestionably a major setback and will cost the company millions in retrials.

The drug in question, NBI-98854, would be the first drug on the market to treat the rare disorder known as tardive dyskinesia. The disorder is most prevalent in psychiatric patients who have been taking anti-psychotic medication for an extended period of time, and affects almost two-thirds of patients who have been on anti-psychotic medications for over 25 years.

While NBI-98854 has not been shelved, the drug was expected to be the company’s main revenue driver. Neurocrine now has to start over testing at Phase II of the trial, with an increased dosage of 100 mg, up from the 50 mg administered in the failed trial. 100 mg is considered to be the maximum safe dosage of the drug.  

Neurocrine currently has no products on the market, and their only other drug with major market potential in the pipeline, the uterine fibroid medication Elagolix, is not expected to generate enough revenue to prop up Neuroscience’s stock price.

Neurocrine was hit hard by the trial failure. The company shed 28.8 percent of its value to hit $11.89 a share.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:


Symbol Name Price Change % Volume
CCTR China Crescent Enterp Inc 0.00 0.00 0.00 0
NBIX Neurocrine Biosciences Inc. 45.65 -0.02 -0.04 829,498


Emerging Growth

GSV Capital Corp

GSV Capital Corp is an externally managed, non-diversified closed-end management investment company. The Company has elected to be treated as a business development company.

Private Markets

MyForce, Inc.

As parents, we constantly worry about the safety of our loved ones. The media bombards us with incidents from across the nation school shootings, frequent assaults on campuses, and crimes…


Our mission is to be the best place for people who care about music to create and discover thoughtfully curated playlists. In essence, 8tracks is a platform for online mixtapes.