NBIX - Earnings call transcript Q4 2020 | Neurocrine Biosciences, Inc.

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Operator

Good day, everyone, and welcome to today's Neurocrine Biosciences Reports Fourth Quarter and Year End 2020 Results. At this time, all participants are in a listen-only mode. Later, you'll have the opportunity to ask questions during the question-and-answer session. [Operator Instructions] Please note, this call may be recorded and I will be standing by if you need any assistance. It is now my pleasure to turn the conference over to Vice President of Investor Relations, Todd Tushla. ahead. go Please

Todd Tushla

Good us Chloe. XXXX and you thank call. Thank our afternoon fourth joining on year quarter for you, everyone and earnings full

On to and our Officer. Chief statements. during Chief Officer; Eric materially. and that will Gorman, our is call, risks Strategy Chief These I'd Financial our Medical the Commercial Chief our statements our and Matt today's subject to I review differ forward-looking everyone Development Officer; remind the discussed Chief be Roberts, actual are filings. SEC to Officer; risk we Gano, Abernethy, our latest Eiry certain Officer; Benevich, call you may today Kyle like uncertainties Executive and factors Kevin making results Business our in encourage

into remarks, prepared we head then will Q&A. our Following

to I'll with that, So, it turn Gorman. Kevin over

Kevin Gorman

time. talk Thanks everyone many short a time, weeks, pandemic. Todd. also, I to think. of a how brand worsening our three touch again. during we It's of were earnings; good afternoon. topline a and It's were announced that told been encouraged about base with half We we grew we Good That's at announced able to to only those And that we much earnings. the topline And you. period you

we We which now also into. of QX how talked we're about XXXX, view about a month

This rolling out was from like QX Our other and then. hasn't the first view message quarters. changed our all

is normal of of obviously, And of dominated where being second COVID plans. before, half the as business weighing impact who reauthorizations we both quarters, to where always changed expect the those of is tale our and but prior the quarter as patients in. of patients have still QX with of of stated again, by half return, is pace first this the new two and existing The then authorizations a insurance

launching on XXXX, of stop of into a of XXXX. will shy all in and just as we INGREZZA, the Eric ONGENTYS, sales back facets and go several plans brand for performed with then the clinical the more But and significantly I start performance on pipeline. our new well attaining of look our programs Matt detail effectively business, $X Now, managing billion our XXXX expanding in and

to medium regard the by just Parkinson's continuing program Those with are of the term our our exploit commitment and being with Voyager. terminate that holds. the our recently last pipeline Now, Eiry. robust decision we financial to and the addressed redeployed pipeline to made with manage a human point, to resources, be with resources fully our and details And near opportunities pipeline responsibly

Looking company ahead, to and leading of and on neuropsychiatry. neuroscience that we neurology, in the all focus are becoming means neuroendocrinology, mission our three disciplines continuing

Our this to pipeline, a current with great foundation goal. gives commercial achieve medicines, us along our

the like I'd of starting to that, the over call with So, team, Matt. with to rest the turn

Matt Abernethy

Thanks Kevin. also INGREZZA our comments performance, Good afternoon expectations and QX everyone. I'll on QX, allocation. make a capital few for brief

driving rates, that During the compliance basis. the million adjusted patients on patient encouraged were the and by adjusted with million growth, remains sales great an inventory sequential reflecting new additions inventory and $XXX quarter, We for tardive $XXX need QX fourth dyskinesia. INGREZZA were strong

patient trajectory COVID XX% growth virtually. psychiatrists impact around Although the done an visits TD being market, we of the still given has encouraged, on are of acknowledge to

COVID of to lessens. be to well-positioned is accelerate as on visits in-person goal patient growth Our the impact

gross QX and year QX to increase to our seasonal years, to XXXX, the to will discount handling enter beginning of we by net QX discounts. also like net to dynamics mark X%. expect the specialty year reauthorizations product this fourth to Similar from gross elevated INGREZZA, including specific prior As a we around payer-related the

patients. for environment. excited similar very revenue the we compelling will net medium of strong all in expect to to per current XXXX be for access and adapt of to about potential continue and long-term remain INGREZZA addition, We XXXX, the script In with

We Turning approximately sheet. our debt million. to about XX% the debt $XXX of balance convertible repurchasing reduced exposure outstanding for by

Given flow, to $X with generate free cash exited in to us long-term cash, we in enabling over to invest XXXX our ability continue growth. billion

operating XXXX reflects of late planned focusing capital pipeline our allocation opportunity a neuroscience the to Our priorities stage guidance leading mid with be our with us well as the to positioning on INGREZZA as company. programs, expense initiation maximizing advancing eight

based this forward, reversed in payments we with our expense and tax full As in XXXX to to expected recording and that in over you Eiry hand P&L we Medical with. Chief million cash saw entered With allowance our year federal going begin the losses around of will I quarter tax $XXX the the the Eiry? call tax Roberts, release, valuation upon our XXXX a sometime occur Officer. for net operating that,

Eiry Roberts

I'm once for partners provide pandemic. again and all teams we I'm across ensure underway Thank the research late-stage Neurocrine begin, thank to our of But the work and in and already broad our planned clinical of happy the you, new with initiation programs. this and Matt, brief programs us clinical and their hard development, investment made proud successful to afternoon, to the in for diligence a of set the advancing year. for before XXXX a I and good everyone. their even many update mid- ongoing must programs eight clinical I progress passion of challenges, development on face unprecedented presented the and

and on of us to carried in help pipeline patients our neuroscience-focused psychiatry and we neurology, and well as development resilience clinical a Our positions the neuroendocrinology. for diverse the and at Neurocrine year foundational areas and well-balanced day commitment in advance deliver

for patients asset, single progress with to Phase adults of clinical the registrational pipeline currently hyperplasia crinecerfont, through continues congenital development the in lead globally. treatment adrenal Our study III enrolling

trial year. first In the this track on of remains addition, the registration initiate to single pediatric half parallel in

for current our many CAH, payers can currently and of clinical We the much alternative that face are manage agencies, with deliver patients the in on advocates we struggle leaders, with with trials, successful whom interaction of inadequate confident based a outdated patient opinion regulatory to key treatment needed treatment. and if

initiate commonly candidates attribute QX advanced benefit the Huntington's of by valbenazine patients within KINECT-HD in year This best of disease. brand valbenazine, in for INGREZZA many pipeline is a of displayed U.S. product our indications. number Phase clinical our under pipeline immuno-oncology in this to both the year. a our most additional is with within registration in VMATX evaluation shared data Korea perhaps across line product name anticipated and trials plan pipeline, in indication. concept the psychiatric is new study a for our internally registration exemplified areas valbenazine two dyskinesia. this currently by across is and III under the discovered our of in Furthermore, potential tardive an is Looking setting the from with of important inhibitor, studies marketed indication interest, in pipeline phase treatment The to neurological we the Top the

In channel submitted a for the other Phase the Spike additional in Valbenazine with benefiting in successful multiple the forward note, three And we Phase encephalopathy also disease Yesterday, efficacy patients Shifting authorization XXX Thailand, but Health epileptic moving Tanabe Wave designed Singapore, a from programs South geographic looking to within a application to in additional of filings selective Ministry great and or Pharma tardive nervous range marketing disease our to already add short. study neurological addition NBI-XXXXXX year. system the the central states. approval of our for and of is Japanese antagonist, Malaysia. for a serves are with enrolling study study valbenazine Korea, product, precision this example potential in initiation II Welfare top the currently to marketing pipeline potentially Asia-based Phase in Pharma T-type partner, with new for INGREZZA patients dyskinesia. indication are a on first for and in value the line into the expanding an XXX evaluate patient valbenazine Indonesia reach Corporation, the of has a reported and with have populations, forward to X Mitsubishi TD. during these II gears, results year J-KINECT a we safety Tanabe plans patient of as I'll submit Sleep. also authorization already a medicine has of in approval and begin across one this potential highly and expand areas. XXX, for indications of Continuous three to populations. potent potential two epilepsy for the with related calcium and Mitsubishi

to are or NBI-XXXXXX, Phase our of XXX, and SCNXA-DEE application patients, selective channel inhibitor. will II FDA reviewed quarter to simply third highly the the initiate in amending is include New enrollment patients Turning SCNXA-DEE expectation feedback on study population response to soon It NavX.X in a in in has as approved support adolescent expanded we FDA our Drug information. potent younger trial In the the as that our with trial patients Investigational nonclinical pediatric additional clinical now XXXX. to sodium of and be

XXX to year. treatment of of We also study epilepsy a for Phase focal the II this plan adult initiate

result, year. candidates, XXX two underway As XXX, our and in with a precision disorders we'll medicine neurological this distinct four have trials

clinical is our this NBI-XXXXXXX. initial look for to as XXX line from the sharing asset, complete, turning evaluating Phase symptoms we data of of potential psychiatry and later The INTERACT Now a QX. in schizophrenia portion study lead negative the treatment study to forward II top

the in potential the job treatment forward of inform outstanding this available and of on as INTERACT we NBI-XXX that symptoms current further schedule advancing schizophrenia. With the face treatments hope path suffering negative FDA-approved a completing INTERACT an study of for no of evaluation can a did devastating schizophrenia, molecule Takeda, partner, impact patients data for from the pandemic. in the Our the the for

the for summary, With all year with and our readouts of in that, two Looking in late-stage programs. to back, the clinical I'll to initiation marks you, mid uncertainty remarkable, Neurocrine years. just eight Kevin. XXXX roadblocks is development potential doubled two pipeline data In back significant it we've clinical and a hand given that foundational

Kevin Gorman

Eiry. much, very you Thank

up for why questions now? So we don't open

Operator

first with we'll question from And Please ahead. take Biren Instructions] Amin Jefferies. [Operator our go

Biren Amin

clearly, taking be rate year? just XX% for on my Thanks grew What year-over-year. Maybe start INGREZZA, we the guys. scripts Hi to should growth year, about question. this last anticipate to for

Kevin Gorman

Well, give Biren, we don't guidance.

clinics and not been growth the up as opening as And rate said a big probably think we step is has become a And get add? much to. of it's that linked However, what not is COVID. impact of available. back do look said rollout you has there and even to have the to before, one-to-one an beyond what an – is of and able COVID vaccines all we forward business, impact. to that more tightly we those Eric, forward go to kind think anything I being we're Certainly, but on our we've that to I

Eric Benevich

thing Kevin in add, seen think other the a terms We're little over launch, over the of course that we bit, the still of in that of would only thick things and in and go course patterns we I from on The is see of rates in seasonal of with and the dealing payer the from growth I course the the we've this to of quarter-to-quarter. touched year terms quarter-to-quarter. variability expect, issues. similar growth going as But through this certainly, year we're QX of terms

Biren Amin

then, And have could I if one Okay. follow-up. maybe

on schizophrenia from this their deuterated data study? their recent negative this the if symptom read-throughs, make with any, we in Given the XXX failure data for quarter, set Concert D-serine should negative what

Eiry Roberts

I Hi, take can that.

extremely just deuterated and the of from a a that So, D-serine, was of to study study. dose. higher obviously from all, that the we potentially in in data there, D-serine have couple dosing were required of the we high that leading and interesting, of features that of any bioavailability Concert obviously, even dose idea deuterated Obviously, the was don't comments terms outcome central the the really that achieved first few study, around saw

high from centers and And was Also, this how of a the US in the big -- target is saw to response, really a the placebo getting hypothesis much so, a in top we line what unusual in very very understanding had test not a which question. US is data, environment. in study the to entirely conducted type

quality D-serine we are psychotic can So, first the which NMDA And have negative incline of that molecule, demonstrate positive the to small very symptom with hypothesis that nature sodium elements shown the and that NMDA that, remain and produce the supportive confident in of as target a the the pharmacodynamic within translational the we is antagonists committed of there schizophrenia. downstream of are know done obviously, well the occupancy in hypofunction given treatment. to that effect. confident studies I also We're activity hypothesis work that being, think symptomatology. the molecule XXX there molecule I several we're themselves very second that and testing benzoate -- mean itself to was and and

we're able study, to and global this study the of make and from So, think, other understanding on be important study. the that, very the a I'd hold And data we'll in is only I obviously getting result is comment a area. as the see that's, focused INTERACT INTERACT of --

Operator

question And we'll take Stifel. Please ahead. from our Matteis next Paul go with

Paul Matteis

of right I Thanks. thanks pre-pandemic little follow-up. what NRx then to kind year you're relative have so December. are bit to give now you much. start where one of I seeing levels could getting was Great, to back if a were you on And year? more And on just wondering and color terms you last this us where in maybe

Eric Benevich

Paul. of the QX things a Hi, a is was a said, I The last had Kevin two would we're way But perspective. thick describe great year. it quarters. Yeah. it from We half tale QX as in of that

lot really patients the minimizing changing First terms It's and in impact half It's plans second new of really few just requirements of of of quarter. the a very prior of this into quarter pattern requirements quarter, patient terms kind up the year. on. in early. so patients picked and the authorization starts half a on. and of in same focusing weeks continuing then that's the of so things We're happening activity for the on And and reauthorization was

the So of be COVID-XX. expect in seen kind me as trends dynamic with to we But for comment what on obviously, to of year have look the the added premature it'd same like. this past element we've years,

Kyle Gano

pandemic. QX And to aspect, And patients last levels described, year occurring a I were when the a record But stopped then is then notable that and we of now. flowing only QX. still are to we into the is add we saw at psychiatrists' exiting saw pretty through And fall entering we Paul, into between are then the bit that COVID. a NRx indicator fall said But growth offices, we And that, I'd steep say as a will office. will back there gap of of pre-pandemic recovery half in which where return would impact and try patients prominent minimize a likely be more it the we're lot likely, Kevin question, second into returning start to the looks like in doing as where the way. the biggest of we've

Operator

Tazeen with And we'll next from Please take our question Bank America. ahead. of Ahmad go

Tazeen Ahmad

Thank for you follow-up as the schizophrenia you sites questions. my of it's a sites global have why relates thanks for to detail I to Thank in important then to have Can types these a us limited as just in studies opposed on And you. more little US? INGREZZA. a XXX. Good bit afternoon Maybe taking Eiry much. on very it follow-up and give

Eiry Roberts

Yes.

question. program think been shows at in I spread recent challenging. being US, response type lot at quite public quite the into certain in becomes to that then of the There's of think years geographic placebo And X early development and -- sites replicate I a program. within that thanks that data having that for important able Phase the in this has least the the

hypothesize. that I reasons lots think, behind that, different of there's

the Some around is the pool. patient quality of

that. the fully being sites And is the in the between I but think Some don't and understand in world. some around patient really relationship elsewhere investigator we the than US -- different somewhat

programs. it's think in believe diversity the to from these very just -- geographic I outset important it's that we have

Operator

We'll Please go Josh Evercore. our ahead. Schimmer with question from next take

Josh Schimmer

question. for Thanks the taking

identify expect treatment then of those terms half that tardive around XX% rate where to APA dyskinesia occur? opportunity XX% of for increasing indicated are expect undiagnosed of greatest the diagnosed, do see What diagnosed previously them? patients? you patients you to tardive in of treated. When are Thanks. the do dyskinesia impact And patients, you've the do new to the of you So guidelines have

Kevin Gorman

Yes.

lack as last first can inhibitors for into but that antipsychotic for do treatment there past. to put of harm more TD Certainly, anticholinergic example, the that there evidence support adjustment some these it's say the actually updated APA the and fact strategy approach it's VMATX as recommendation to of fall. a widespread guidelines important out and welcome good are So development the in their context putting that all, agents Cogentin, and than the first-line I'll treatment, been such a of have as components a also patients in treatment

already new In that. programming. expect team. we're start terms do the rolled to our of to to we guidelines with do We've into benefiting We've well, attempting patients field those educational out new them TD, when guidelines sales incorporated

to into with community we're having has And medical well with field discussions they've as incorporated been Our those team leaders access as thought that guidelines. certainly, providers.

and that important dynamic. And We're a regard of on lot especially the the Obviously, coming to everyone still in majority care from side. talk and with of we with recommendations community, question done we make the provider we've in can launch of to made address aware up the with now remain awful to four terms of continue that situation. to since on sure So be undiagnosed the we've what the new education, APA. feel years invested that's progress. half and health is lot an that TD of like that INGREZZA, we're an work patients psychiatry second of to in going your the Then

to but for recognize can that advocacy groups providers, in confident and educational However, terms efforts the their helping with patient and terms invest capable psychiatry, ability other more diagnose indirectly in be there are still a working to care of about large through also and information amount campaign, and TD. partners especially share example, in continuing of our of we venues. directly, TD DTC talk patients also We're in to in

so all it's whether we'll providers, we've But that So people from treatment. to good feel of make we're to going I medical the it's that stakeholders, educate recognize there's continue really and so associations made far, the benefit from could the organizations, there. suffering to that professional patients, progress And continue TD on. whether progress lot a we about the with advocacy working still but

Operator

Laura our take we'll Please Christianson go question next from with And ahead. Cowen.

Laura Christianson

quarter. on for taking great my another thanks Hi, question. Congrats

you're curious from adjunctive far? prescribing? just the What sense patients from curious And like I'm what might launch. So we've Parkinson's you're thus you of ONGENTYS seeing that with to KOLs any that then on so heard have also, And seeing just physician I'm treatment. far avoid help inroads there any if

Eric Benevich

educating getting terms is about this very the in reimbursement quite And they're community, ONGENTYS. about that in and a positive essentially mode take that, introductory favorable, maybe she'd Eiry putting product, on to process, the been sampling since I'll benefit conducting crack neurology strong with the just presentations. everywhere. With to reviews initial -- the terms feedback then I a the frankly. for product what we've about from trial also to Sure. bit. the response and some ONGENTYS, the at patients a this share. describe in feedback mean, of been but launch and But physicians getting still we're been the I regards comments has launch been a would has been not quarter, we've in patients of We've non-formulary like very has early product as

one those regards reality of adjunctive wanting to question, where is the the actually patients experience levodopa that there is products of therapy Parkinson's levodopa people treatments on out half more frankly, your of XXX,XXX go already. maybe are With one that two-thirds, with on not the clinical So majority treatment, data. with the the lives second on About adjunctive. are on are the up adjunctive of or to an on are to that patients clinical this

is brain in frankly, treatment has reach been optimize is and levodopa ONGENTYS before levodopa job. one a as enzymes of its break them. the to do ideally COMT And position the our that the suited go-to so down approach that are product, And it to can really and therapy. two periphery There adjunctive

been as comp neurologists clinical role reminding And the about so the the of busy we've important well as ONGENTYS. profile enzyme, of

dose directly or from before a And would adding so adding doesn't class that ONGENTYS provider levodopa levodopa boost the consider an another escalating of levels. adjunctive treatment ideally,

early therapy. the we're early favorable, said, and like it's ONGENTYS continuing Anything the feedback optimizing So as to been I levodopa in option The position for launch. go-to to add? has

Eiry Roberts

that Yeah. carbidopa, and I view levodopa and I for the to Eric to clinicians add levodopa with lot levodopa that's that what there's the is treatment know Parkinson's necessary as loyalty And would mean, patients of disease of a treatment. just levodopa said fact that adjunct optimize and and exposure. standard we because commitment gold treatment always used an that to

can believe to other that ONGENTYS of of optimize terms effect And And side about and treatment. adjunctive some that sometimes so that sort. profile, issues think get I agents we really continue the of nervous interaction patients levodopa things in drug-drug

ONGENTYS by for required a I and of as result, the we're, hoping very so -- potentially that very number we've and will obviously, think And I that clinicians. think patients. promising that of lot of doses heard reduce be add as to labeling value a that's levodopa the individuals that's efficiently once-a-day a the levodopa and used ability with And to around effectively single treatment

Operator

our next We'll go Please question from ahead. with take Brian Skorney Baird.

Brian Skorney

Todd, Hey. the jazz my Good from hold Thanks the GNR/Metallica. smooth promise I question. you the prelude but guys. me taking call, on to love afternoon, music, for did

really seizure design? I And endpoint? plans characteristics to sort And trial a are terms you looking hear like I premature, it's put primarily is in to maybe at guess -- like this but XX-day, talk kind of what do can be and want in type of reduction, think baseline the the know of So days, patients. through, -- -- kind Is you how And I population. patient a in of going in frequency seizures these one of on, of walk question little these sort of disorders. my XXX it's us that. this SCNXA-DEE

So would of what gauging, here? be sort could successful you start

Eiry Roberts

Yeah.

fact, about trial later think a design, talked What when up posted And is given to the though, is I be will that, year. is in itself seizure this in for a But and of heterogeneous epilepsy seizure can that you from actually rare intent how trial to terms devastating, deal in really quite age. its point. pediatric may the type, terms which of usual clinicaltrials.gov, haven't this is has a I -- young this actually, patients say, do our frequency. expresses very would that, be great it very as know, phenotype We very on it

The was important would towards to that in our patient, that patients and single enrolled thing this ensure us every we to this the for the in us the agencies register count, medication. for interactions with bring program to ability

which where will amount that it a the the pediatrics, And in trial. to us enable moving of registration-quality so even best the in older starting the derived. being to be large of into And we're the context of a population. obviously And opportunity way is have adolescent be ultimately then, through the value working designed will trial in

Operator

take next from go question we'll ahead. And our Please with JPMorgan. Anupam Rama

Tessa Romero

guys. is for question. Tessa This Hey, my Anupam. taking for Thanks on,

schizophrenia are one quantify Eiry, maybe able for On Difficulty] [Technical the to program, you

Kevin Gorman

program, Hey, of about asking we then, heard the Tessa, we part first you. -- lost the only you schizophrenia

Tessa Romero

Can hear now? me you

Kevin Gorman

Yeah, now. can hear you

Tessa Romero

the a is basis basis, clinically if as percent can decline, quantify of on in given Thanks you then, might Okay. And criteria? baseline viewed performance? range you Wondering, point subscale anticipated or the is be, any placebo the question what the inclusion-exclusion PANSS, placebo-adjusted color meaningful? about much. a So can thinking be embedded so negative in what should on, provide the there we how is,

Eiry Roberts

Yeah.

anticipate. to haven't on any actual extent great We baseline commented that really the we characteristics

what see very going And to wait the be are to then, obviously there. seeing happy talk through, we'll I think data. we're to we

of in that nature The significance, for this In you powered of clinically I just also, to levels programs terms of it what the of to are negative to here, primary score. point a of would determine this I field, kind guide is well And kind difference that guiding of us clinical look symptom a order to the if placebo-adjusted though, in and exists. very be. changes change is significant think trial, make, terms we other might around I positive do in is factor one the endpoint want although --

significant a a both this and Phase other of is focused on other II total dose-finding endpoints. score PANSS study and are And have in the endpoints the cognitive that number on study. negative We symptoms, this functional

looking at So, will the be in endpoint the in the just itself, of data, the in inform help than next totality at we steps rather primary to us order development.

Operator

Choi We'll take question with next from Goldman ahead. Please Sachs. go our Paul

Paul Choi

you And my questions. and afternoon. taking thank you for Thank good

the Eiry, for on schizophrenia please, one Another XXX trial. in

range but I about that using Kevin to a how think for the thanks think wide we guidance, therapeutic doing? And As want just potential sort here, follow-up do a the and either ask you of doses think And the of ranges you trial, given as dosing how then or OpEx about about you're dose the Matt. do you response – here? are in window this magnitude

business as and reinvestment rate As development? is sort the how think of reallocating longer you'd the term at, continue you flow about you reinvestment this do here, the in leverage business or think generating the want about the in to about you to rate – an of business think of the increasing about portion of your thinking cash

Eiry Roberts

of they had a good as in of medicine and Takeda And response On I've target really had mentioned look dose at really the around the exposure context things taken molecule before, of this was this of part really one but terms and XXX, appealing that response, us I done. network translational in the that was first the question downstream great to engagement that, pharmacodynamic think activity.

is from testing order we're profile in of that – from if we the benefit/risk range progress for that we're dose which DAAO which or levels able dose a we one study, INTERACT us INTERACT as a overall broad believe, that's the at determine with to so to range And the successful. know to be look doses we And forward in the important, really inhibition. study of different encompasses

Kevin Gorman

want Matt, of to capital? do talk you about allocation

Matt Abernethy

sure. Yes,

said, say behind to hand to we're back would money I But we're We've we we're the long invest then pipeline. spend going what Paul, conviction, going reinvest where how perspective, reinvestment opportunity. on of we rate avoid have more into not a to we our are in to just business, going maximize INGREZZA to probability. first from do that and the So and have focused

today. want as So this our to just is build what I where We to and be on at has it's side. say, right company. and equity of And going value. internal a external is we'll we leading billion of aggressive. work well with going kinds to Kyle And reflection think of I see a in as to would to continue neuroscience sheet Paul, to cash as balance then development, $X the continue reach opportunities, also we're take the But it's

So that's know, be this biotech. of of do I within XX% power OpEx reinvestment a of is right the mature revenue year more sustainable reflection. companies sort staying our But back the say And of over guidance into to to long reinvestment R&D of a have to XX% wouldn't we seems base. run, for level

question. your answers that hopefully, So

Operator

Move Jeff Stanley. Morgan with Hung next to Please ahead. go

Jeff Hung

question. the taking for Thanks

for programs? on the differences decided that to to ataxia? in time with does that you that broadly, maintain for And For the replacement Friedreich's Friedreich's neuroscience gives there open a you've ataxia gene as the future confidence Thanks. therapy you're from program. Voyager still more modality being, XXXX mean gene Are partnership

Kevin Gorman

then beginning, as question. therapy, therapies. just Voyager we that collaboration is we're open is very said program. with for the the collaboration in gene a Voyager. There Friedreich's the first two preclinical to there genes Parkinson's program said that to with four we'll doing And are into we be this is Voyager. ataxia the Thanks brought we Yes. There programs and our were this that collaboration when – from the We're work started VY-AADC. with with There gene we – is

independently so And all owned program with our wholly within programs stands collaborators, just of that those with in the in pipeline with Voyager. collaboration each our

or of merits, each look that's them one And in will that forward, data those. we their invest so we And derived on the independently. take being not each of at based

of rest Voyager pipeline. our is the So there it's the collaboration there's than nothing – different within within

Operator

Mizuho to Leerink. looks Marc question. go Move withdrew his with next Vamil Goodman ahead. like Marc We Divan to next ahead. move Please Please go And SVB it Securities. with

Vamil Divan

much question. so for Thanks Great. taking my

quarter I sort again just if from similar kind quarter that last fourth at in time, what first a quarter dynamics then sort the on this little could year bit sort of you up of a more, warning had I was up a of us about you XXXX. delivering think the ended little commentary, maybe the ask bit And was of So dynamics.

we so don't a with, happy performance? sort fourth you just questions what to few sort appropriately next over that sense sort out sure sort be going [Indiscernible] fluctuations year. what Is -- up your through of quarter of taking little just just I'm what other of a so to trying any And weeks sense I think we from of get get would the sort maybe expectations give the reasonable would a get of quarter know frame of we're last I'm to be bit be general trying you as sort can guidance. you'd go it I'm flat, of a or performance here. inventory

Eric Benevich

since we've terms that that process getting it's as to year, little company product, bit go better reauthorized through launch go -- Yes, back in process navigate a had each a I'll what a at I'm a in gotten given was not your of question, really to treatment. through understand our QX, we've and on back sure seen had but of that specialty crack I mean year for that of full the existing fact the and a totally customers it. team in helping process. to the I them a first patients XXXX INGREZZA And a take as

function So off grown It's that insurance unique not group got you've of each fact of are a of specialty just to this of the as a But because is INGREZZA. reasons. larger patients has it's dropping a temporarily our of treatment, at base risk patients medicine. that year, albeit

starts We QX QX. strong that's, in new a pandemic that, is and in year then issues. years back And frankly, saw in QX what and the from record a you've more as seen XXXX. a challenging patient going had of of QX. navigating patient with we number new And hit. that then so, seen we is we quarter in exit go of into And terms growth payer those And past QX we've XXXX, each starts to of the into mode what get

challenging I stronger a past from years is so XXXX in And relatively QX. cycle QX and similar look expect sort basis, to years that annual QX. strong be seen in -- would of growth going We've then quarter challenging a to past with more QX, stronger

layered the I that INGREZZA thousands to created the change, with many obviously, about of new but help is going challenges some don't optimistic the to in in the more term. of longer for everything, potential So pattern, necessarily we're on patients. us And top pandemic that's for near term, very think,

Matt Abernethy

So a bit Eric on just to on. build commented what

inventory. it, out, recall, to QX you you last from overall If year, were, adjusting flattish when as call our pointed QX for sales

other be still spoken Eric earlier So we've on NRx same mentioned, have we're and beyond. But an the get you are as because about working the importantly, through process, nicely play, first as QX year. only as really a would piece call. at dynamics quarter, sets COVID don't patients that strong in up this that importantly, discontinue does for us The and patients that this fact impact reauthorization the to through the ensuring said,

Operator

Suneja go Guggenheim Please Yatin with ahead. partners.

Yatin Suneja

Thank Yatin. is This question. you taking my for

question through on long the once INGREZZA are run, COVID. Just a we in

a talk I from XXXX, script a COVID somewhere XXXX, impact you quarter-over-quarter terms growth decline. about growing Obviously, So XXXX, X,XXX is think think for perspective? longer term to XXXX, XXXX, how conceptually like quarter-over-quarter in back Maybe if had look the around X,XXX. growth, growth a proxy so I we good were of big in

Kevin Gorman

our growth more less We've a the say. to We've COVID trajectory. especially to impacted goal concerted traffic mean, that into back made needs than psychiatry. foot to Hard relatively higher get term for seen onto I stronger especially there drivers obviously, be psychiatry we've is neurology, into a near is by obviously, with going with practices. that, I'm commercialization neurology mean, return I this as described This in what push is And INGREZZA. I effort a the early about us our that help benefit product. INGREZZA to is still relatively we're to nascent think to market, drivers trajectory franchise. those this still thinking And relatively launch way that, ONGENTYS for overall the growth be that a ramp important stronger to in to of the are undeveloped.

In developed. this fact, career less industry, in was in a I've that never worked my therapeutic area in

driver patient recognition And diagnosis. is a And new starts on strong obviously, very for and a diagnosis got, INGREZZA. so we've of focus

And neurology also So going to to pandemic of earlier, to will TD of providers continue system. diagnose to our in psychiatry, interactions. our we're new invest leverage the during both in things helping those to return us the well the in see to we ability get we're pandemic, position and customers direct-to-consumer do of telehealth as approaches together mentioned we and continue And in can in wane everything to to once going in-person normalcy and I a efforts. starts to to health navigate terms recognize all front

move to robust looks ability to trajectory in be as growth more like quarter-over-quarter forward the as our seen, a what go So growth we're on we get to we forward. confident but very remains

Operator

Company. Stringer from Please Needham with Question Joseph go ahead. &

Joseph Stringer

ones. percentage comment follow-up patients. on taking patients, quick TD of you're And at Hi. couple our you you the A of what Can market's diagnosed virtual currently Thanks -- think for INGREZZA? penetration a the questions. percent of on with

you pandemic us the where it around end maybe now? the then commented to is towards be start year? You that of this now. XX% will through it see and like what at of of walk to also percent was And you the where think would sort or Thanks. But can

Kevin Gorman

Okay.

or the billed though, first. that telehealth to like second I'll time, psychiatry. prognosticator therapeutic pre-pandemic, telehealth it will pre-pandemic, like INGREZZA, what now looked look it here. take in psychiatry was than launched about less maybe areas. a other regards all it were that And was question And X% as more When a broadly of on going and I'm So we -- With at underutilized. utilized patient took than relatively in where to telehealth hat at it's visits say, put what in my looks we headed, and your your I first visit. opportunity question

in of those on mental patient what higher to quarter a point of similar visits and with visits are telehealth to directives, a specialties, and psychiatry back reference. includes psychiatrists cadence bounced visits gives it subset were psychiatry. on, and than of of volume about may as it both of contrast percentage the are XX% that of the all different only even health is were about that the got so multiple more and down above pre-pandemic. patient And when the you normal the specially pandemic were I'll of XX% physician less telehealth. has neurology. call So pre-pandemic, across billed Psychiatry And Total is states in it community within was shutting over what that so. it in they Neurology last with really be of -- clinics issuing of a shelter-in-place half sort Early neurology. or practices. XX% we

and in terms telehealth use bit of So, the difference of neurology. a of quite psychiatry between

this were temporary of means the health where administration it's carry end issued recently Biden of CMS that through of through forward telehealth terms year, the emergency in waivers designation year. the going, will forward to they In year that functionally the going increase public announced the that balance last carry this that the spurred which

your continued going our are And That's the patients diagnosis in question, there. can And So around to we're back we in they're that get as telehealth what expectation year, first their to further psychiatrists reevaluate into levels person. the then part of why we of that rate is coming see the in seeing into really and and sorry, high of psychiatry. we've invested telehealth. practices seeing was extent heavily the so we're their

will change here patients the behavior in get VMATX that diagnosed earlier, inhibitor. offered of that the area upside half TD of community. opportunity as But for the to of another is majority provider And mentioned a TD. remaining day, help that do or and of paradigm with obviously, APA potential So I aren't see guidelines this a focus that the as undiagnosed about with with to we lot patients yet us

pool, both be should especially VMATX and first-line it's of that inhibitors, patient of also diagnosis considered getting those physicians recognize So a that the patterns increasing practice and therapy. increasing INGREZZA, and but to combination rate changing available

Operator

our question take Please go next Duncan Cantor we'll with And from Charles ahead. Fitzgerald.

Charles Duncan

question. neuro the work for question and on patient regarding its was years differentiate if ago And of and also color the of Kevin the and you're public that to INGREZZA, doing that It's a taking royalty the future. is coming second collaboration, relative And wondering population AUSTEDO Hi, Asia on valbenazine of was of a milestones indications the and especially in on some the the team. Thanks. Okay. Korea part the the Tanabe congrats few when to could I'm contemplating, valbenazine had from kind States? how rate? Mitsubishi Auspex given the data, and market? we you given is to remind us in Thanks. psych I any had and question. then some One debate Thanks a you're X-part recently.

Kevin Gorman

or you to the Matt want Kyle, talk financials about first? MTPC

Kyle Gano

mid-XXs Japan, jumping upon $XX a royalty in are front those the not And on in total mid-teens. between terms tiered in ones in of and we territory million sales the about in terms and royalties, to And now approval, probably guide of approval. milestone meaningful most for or We on here. in submission net to somewhere those mid-teens are the the the and then Japanese get is in would it's do percentage. the the Matt line on

Kevin Gorman

take first part question? to want you Eiry, Charles the of

Eiry Roberts

Charle. Yeah, certainly,

the dyskinesia. in revolves that So we've risk profile paradigm, mean, differentiation obviously, a treatment and need lot that once-a-day around the I a complex seen valbenazine titration favorable of your that dyskinesia. simple from in I of differentiation correctly. tardive and in question with And profile for in respect VMATX space, inhibitors very to confident already lack Huntington's tardive and if potential approved benefit its understand very the we're Korea program and other

trial And in to population. possible is KINECT-HD this much as new replicate so the designed that as

the package, paradigm, favorable able that, deliver profile hope we're an have TD the on black be don't data that the additional benefit/risk differentiator. once-a-day with continue, would We population, to in able environment. in so be very potentially on continuing suicidality a that currently treatment to to and And obviously hopeful we're box we that And a would dependent for generate.

Operator

Leerink. And Please SVB from Goodman next with we'll ahead. go Marc take our question

Marc Goodman

before. what a spent? technical all And the second, in two get Sorry a increases what kind in of the good a rate we tell can the be decreases the sense XXXX us difficulties One, about the you is Thanks. can we sense so just give Matt, how are SG&A are, line versus questions. us just just Just your business, the XXXX? as the using you exhaust a is do being should sustainable tax when NOLs, money that comment? you repeat tax And rate one? of

Matt Abernethy

Yeah.

historically of we expense from because And perspective, won't XXXX. it's be going or XXXX. even though still likely we a full taxpayer in around XXXX, expense tax said million have into NOLs a start What On recording XX% until so. be cash XXXX, do $XXX front, a the tax we're will federal in a tax entering I've to we here taking is

So hopefully that's helpful.

growth. the get see positioning out increase And and SG&A. and Eric to going what through largely, SG&A going accelerated I we pandemic to say INGREZZA to it can is pandemic both grow that described in what with is an be it you would the then able behind are On front, that earlier have positioning well ourselves we the as of

to relates engaging and the ask physicians. So with tardive it front, about dyskinesia them on to a on their going to lot patients going as bring their have telepsychiatry up

lot this eight as epilepsy the expense to come specific the Takeda it, initiating side, a year programs. going to R&D is as behind trials On well of with transaction

in our of offset, our And We the that's a have decision of guidance. all little program. will to gene therapy Parkinson's Voyager bit terminate an because reflected

So hopefully, that Marc. answers question, your

Operator

David Please Piper from Amsellem with go ahead. Question Sandler.

David Amsellem

Hey, thanks.

space thinking in a of on yesterday. neuro seen philosophical significant We've late, So deal large a some your pretty question quite the certainly, M&A. M&A on

take you and appetite what entertaining So you Thanks. like with transformational? in to term I what's I that we're you appetite, if where would do the pro something up activity, with mind an for guess would seeing something were your leverage extent that M&A have And forma that? to

Matt Abernethy

question. innovative. truly two, of strong for everything. and that acquisitions science it's patients benefits there. whatever very business is incremental development, that licensing us or would it or whether looking guides Yeah. Throughout first it's the benefit. the in for it's Thanks what We're for of whether be, structure needs a the licensing the is the is addressing We're looking Number not life-changing

in not the becomes, So we're I any And we seen agree find then really on we done look all sense in structure. that, then those kind probably makes with value And that three the deals think of the to do you've – the just that anything agree the any the Kyle do that has can it – everything. add will when throughout two things, at actually to wed that's past we you've we parties then that? parties. And structure you that to one look if lens last to Kyle, value, Then the years on that assets. both of seen. we at have

Kyle Gano

our plans have I sure first of number maximize just bit a and scarce. to the on think Maybe have and us we to appreciate high-quality said, the be pipeline goal to and we make successful And that execute a we that And assets assets programs what there. what it's on Matt we foremost, are in that currently. and programs little touch allow

one XXXX that from M&A, XX bring in ability pipeline would to probably I there say, programs. and So those number really approved speaks be to was the if And you is, but would licensing, when different onboard development working start look on terms on that programs And of that's them and in at taken to about a of its think organization today. the about look programs the traditional in three today I the the INGREZZA absence development pipeline at one more through versus, we've say. back message, of other biz

So I shown active through we've area think and we business can show – development. been we've one productive of

sure the point, that to they innovation types provide the we're the help that of would that And and bringing really if at look reimburse in and comes science make value available you profiles, aren't in the landscape, patients space. look get at it really And medicines. add when that then, willing patients' think payers readily be lives. those our and Kevin's those to to physicians programs I to M&A, we

in to So that we context types way look our allow of licensing augment those might of at structures carefully portfolio other the well. and that deals as very us also

approach in of we in how opportunistic assets terms back but programs to and it terms So science. goes of structure, the really

Operator

call There are to back any to closing would this no turn for further remarks. I now questions Kevin at the Gorman like time.

Kevin Gorman

you very Thank much.

I'm I'd particularly comments. the pipelines looking that, forward continue I'm then, two us are maturation confident out we us -- that that, what we're amongst Eiry of One to and went going than as will time the close, is over see to of going And commercially, pandemic as to said, forward into you even also, out and business as what make seen come in And will adapt, from our Just this you've you several like -- our is we stronger continued environment. compounds themselves. in the with. And and to on come fluid from pipeline.

a we that strength real this have a data year. just to readouts is that And here. here very going of have So we're couple important

take participating I So having care. thank said to and want for you today, that, all

Operator

for does Thank today's program. conclude participation. your you This

at You time. any may disconnect

Neurocrine Biosciences (NBIX) 5 Feb 212020 Q4 Earnings call transcript