nbix-20230331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 0-22705

NEUROCRINE BIOSCIENCES, INC.

(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction of

incorporation or organization)

12780 El Camino Real

San Diego, CA

(Address of principal executive office)

33-0525145

(IRS Employer

Identification No.)

92130

(Zip Code)

(858) 617-7600

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Common Stock, $0.001 par value

NBIX

Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of outstanding shares of the registrant’s common stock, par value $0.001 per share, was 97,574,838 as of April 26, 2023.

NEUROCRINE BIOSCIENCES, INC.

TABLE OF CONTENTS


			PAGE

Part I. Financial Information			3

Item 1. Financial Statements			3

Condensed Consolidated Balance Sheets			3

Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income			4

Condensed Consolidated Statements of Stockholders' Equity			5

Condensed Consolidated Statements of Cash Flows			6

Notes to the Condensed Consolidated Financial Statements			7

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			18

Item 3. Quantitative and Qualitative Disclosures About Market Risk			24

Item 4. Controls and Procedures			24

Part II. Other Information			25

Item 1. Legal Proceedings			25

Item 1A. Risk Factors			25

Item 6. Exhibits			52

Signatures			53

Part I. Financial Information

Item 1. Financial Statements

NEUROCRINE BIOSCIENCES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)


(in millions, except share data)	March 31, 2023		December 31, 2022
Assets
Current assets:
Cash and cash equivalents	$	103.8	$	262.9
Debt securities available-for-sale	790.8		726.4
Accounts receivable	391.6		350.0
Inventories	33.4		35.1
Other current assets	113.2		79.1
Total current assets	1,432.8		1,453.5
Deferred tax assets	337.4		305.9
Debt securities available-for-sale	244.6		299.4
Right-of-use assets	84.4		87.0
Equity security investments	135.7		102.1
Property and equipment, net	62.8		58.6
Intangible assets, net	37.2		37.2
Other assets	24.9		25.0
Total assets	$	2,359.8	$	2,368.7

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued liabilities	$	355.7	$	347.6
Convertible senior notes	—		169.4
Other current liabilities	18.4		20.7
Total current liabilities	374.1		537.7
Convertible senior notes	169.5		—
Noncurrent operating lease liabilities	90.4		93.5
Other long-term liabilities	41.3		29.7
Total liabilities	675.3		660.9

Stockholders’ equity:
Preferred stock, $0.001 par value; 5.0 million shares authorized; no shares issued and outstanding	—		—
Common stock, $0.001 par value; 220.0 million shares authorized; 97.5 million and 96.5 million shares issued and outstanding, respectively	0.1		0.1
Additional paid-in capital	2,170.5		2,122.4
Accumulated other comprehensive loss	(2.7)		(7.9)
Accumulated deficit	(483.4)		(406.8)
Total stockholders’ equity	1,684.5		1,707.8
Total liabilities and stockholders’ equity	$	2,359.8	$	2,368.7

See accompanying notes to the condensed consolidated financial statements.

NEUROCRINE BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE (LOSS) INCOME

(unaudited)


	Three Months Ended March 31,
(in millions, except per share data)	2023		2022
Revenues:
Net product sales	$	415.3	$	305.0
Collaboration revenues	5.1		5.6
Total revenues	420.4		310.6
Operating expenses:
Cost of revenues	8.5		4.6
Research and development	139.5		102.2
Acquired in-process research and development	143.9		—
Selling, general and administrative	242.7		200.7
Total operating expenses	534.6		307.5
Operating (loss) income	(114.2)		3.1
Other income (expense):
Interest expense	(1.1)		(2.6)
Unrealized gain on equity security investments	2.2		19.9

Investment income and other, net	9.8		1.0
Total other income, net	10.9		18.3
(Loss) income before (benefit from) provision for income taxes	(103.3)		21.4
(Benefit from) provision for income taxes	(26.7)		7.5
Net (loss) income	(76.6)		13.9
Foreign currency translation adjustments, net of tax	1.2		—
Unrealized gain (loss) on debt securities available-for-sale, net of tax	4.0		(7.6)
Comprehensive (loss) income	$	(71.4)	$	6.3
(Loss) earnings per share:
Basic	$	(0.79)	$	0.15
Diluted	$	(0.79)	$	0.14
Weighted-average shares outstanding:
Basic	97.1		95.3
Diluted	97.1		97.6

See accompanying notes to the condensed consolidated financial statements.

NEUROCRINE BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(unaudited)


						Accumulated Other Comprehensive Income (Loss)
	Common Stock			Additional Paid-In Capital				Accumulated Deficit
(in millions)	Shares	$								Total















Balance at December 31, 2022	96.5	$	0.1	$	2,122.4	$	(7.9)	$	(406.8)	$	1,707.8
Net loss	—	—		—		—		(76.6)		(76.6)
Other comprehensive income, net of tax	—	—		—		5.2		—		5.2
Stock-based compensation expense	—	—		39.9		—		—		39.9
Issuances of common stock under stock plans	1.0	—		8.2		—		—		8.2
Balance at March 31, 2023	97.5	$	0.1	$	2,170.5	$	(2.7)	$	(483.4)	$	1,684.5

Balance at December 31, 2021	94.9	$	0.1	$	2,011.4	$	(1.7)	$	(635.8)	$	1,374.0
Net income	—	—		—		—		13.9		13.9
Other comprehensive loss, net of tax	—	—		—		(7.6)		—		(7.6)
Cumulative-effect adjustment due to adoption of ASU 2020-06	—	—		(106.8)		—		74.5		(32.3)
Stock-based compensation expense	—	—		37.0		—		—		37.0
Issuances of common stock under stock plans	0.6	—		6.1		—		—		6.1
Balance at March 31, 2022	95.5	$	0.1	$	1,947.7	$	(9.3)	$	(547.4)	$	1,391.1

See accompanying notes to the condensed consolidated financial statements.

NEUROCRINE BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)


			Three Months Ended March 31,
(in millions)			2023

SEC Form 10-Q filed by Neurocrine Biosciences Inc.