Neurocrine Biosciences

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Neurocrine Biosciences
Industry Biotechnology
Founded 1992
Headquarters San Diego, California, U.S.
Key people
Bill Rastetter, Chairman
Kevin C. Gorman, CEO/President
Number of employees
95 (2015)

Neurocrine Biosciences is a biopharmaceutical company founded in 1992 and located in San Diego, California. The company tooks its name from the original focus on therapies for neurological and endocrine diseases and disorders.

The company endured a significant setback on May 16, 2006 when the Food and Drug Administration (FDA) denied approval for the 15-milligram dose of Indiplon, a medication to treat insomnia. Neurocrine had developed the drug and was seeking to market it with partner, Pfizer. Announcement of the setback led to a 62% drop in stock price. Subsequent disclosures related to attempts to overcome this major setback caused a further drop in the stock by 30% in November 2006.

Lacking approval for Indiplon, the company laid off a 200-member sales force in July, 2006 and 100 employees across all areas of the company on August 7, 2006. It announced a further cut of half the remaining workforce in December 2007, and a fourth quarter loss of $128 million, including a $94 million write-off.[1]

But recently the company has recovered the long term hope for recovery. All started on the 25th of May, 2010 when the shares jumped nearly 25% after the company announced its drug to treat endometriosis had achieved its main and secondary goals in a study. The drug, called elagolix, reportedly showed statistically significant reductions in dysmenorrhea, or pelvic pain during menstruation as well as painful intercourse. And the shares of the company were up 69 cents to $3.40 on May the 25th trading, hitting a 52-week high of $4.23 early in the trading session.[2]

But since that the stock has climbed from $4.23 to $6.16 at 25 June 2010. And the expectatives for NBIX has raised about the elagolix trial success and of the sign for development deal with Boehringer.[3] and Abbott Laboratories.[4]