Wells Fargo becomes bullish on this biotech company

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Neurocrine Biosciences Inc,Wells Fargo & Co,Stock Markets

Wells Fargo believes the company's hyperplasia and depression treatments could each become over $1 billion opportunities.

Neurocrine Biosciences ' drug pipeline is turning a corner and the company will be "knocking on the doors of the large-cap club" soon, according to Wells Fargo. Analyst Mohit Bansal upgraded shares to overweight from equal weight, and raised his price target to $170 from $140, suggesting around 21% upside potential from Tuesday's close. Bansal forecasts the company's congenital adrenal hyperplasia treatment, crinecerfont, will achieve $1.

"We think Crinecerfont is underappreciated as the Street is only giving credit for $500-$700M peak opportunity." Elsewhere in the company's pipeline, Neurocrine's depression drug NBI-1065845, developed in conjunction with Japanese pharmaceutical company Takeda, showed positive results during a phase II trial. Bansal said this drug could open "a whole new chapter" of a $1.2 billion peak sales opoprtunity.

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