Neurocrine Biosciences Reports 11% Revenue Growth but Declines in Net Income for Q1 2025

Neurocrine Biosciences, Inc. reported its financial results for the first quarter of 2025, revealing total revenues of $572.6 million, a 11% increase from $515.3 million in the same period last year. The growth was primarily driven by net product sales of $563.7 million, which included $545.2 million from INGREZZA and $14.5 million from the recently launched CRENESSITY. However, the company experienced a significant decline in net income, which fell to $7.9 million, down from $43.4 million in the prior year, reflecting increased operating expenses and milestone payments related to collaborations.

Operating expenses for the quarter rose to $549.0 million, compared to $416.0 million in the first quarter of 2024. This increase was attributed to higher research and development costs, which totaled $263.2 million, up from $159.4 million a year earlier, as the company invested in late-stage clinical trials and milestone payments to partners such as Takeda and Xenon Pharmaceuticals. Selling, general, and administrative expenses also increased to $276.5 million, reflecting ongoing investments in the commercial organization and the launch of CRENESSITY.

In terms of strategic developments, Neurocrine launched CRENESSITY in December 2024, marking its entry into the market for classic congenital adrenal hyperplasia (CAH). The company also initiated several clinical studies, including a Phase 3 trial for osavampator in major depressive disorder, which incurred a $37.5 million milestone expense. Additionally, the company expanded its share repurchase program, authorizing up to $500 million in stock buybacks, of which $150 million was utilized in the first quarter.

Operationally, Neurocrine reported a slight decrease in its employee headcount, with 1,800 employees as of March 31, 2025, compared to 1,900 at the end of 2024. The company continues to focus on maximizing the commercial potential of its products, particularly INGREZZA, which remains a significant revenue driver. The company also noted that it has been subject to ongoing regulatory scrutiny and is actively managing its compliance with evolving healthcare laws and regulations.

Looking ahead, Neurocrine expressed confidence in its ability to sustain growth through its existing product portfolio and pipeline. The company anticipates that continued investment in research and development, along with strategic collaborations, will enhance its market position. However, it acknowledged potential challenges, including regulatory changes and competitive pressures, which could impact future performance.