Neurocrine Biosciences declines after depression drug misses goal in midstage study

Neurocrine slips on failure of depression drug

NEW YORK — Shares of Neurocrine Biosciences Inc. fell Wednesday after the company said a depression drug it is developing failed in a midstage clinical trial.

THE SPARK: After the markets closed on Tuesday, Neurocrine said GSK561679 did not significantly reduce depression compared to a placebo. The trial was conducted by Neurocrine’s partner GlaxoSmithKline PLC.

THE BIG PICTURE: The San Diego company does not have any products on the market. It has two other drugs in midstage testing: elagolix for pain caused by endometriosis, and Urocortin 2 for acute heart failure syndromes. GSK561679 is also being tested as a treatment for post traumatic stress disorder, anxiety, and alcoholism.

Neurocrine said it will meet with GlaxoSmithKline to determine the next steps for GSK561679 as a depression treatment.

THE ANALYSIS: Cowen and Co. analyst Phil Nadeau said the trial results were not surprising because drug candidates similar to GSK561679 have not done well in clinical testing. He said most of Neurocrine’s value comes from elagolix and its other endometriosis drug candidates.

SHARE ACTION: In afternoon trading, Neurocrine stock dropped 34 cents, or 5.4 percent, to $5.91.