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Press Release: Neurocrine Biosciences Reports -3-

· 02/04/2021 16:01
TABLE 1 NEUROCRINE BIOSCIENCES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, (in millions, except per share data) 2020 2019 2020 2019 Revenues: Product sales, net $ 241.3 $ 237.9 $ 994.1 $752.9 Collaboration revenue 6.6 6.2 51.8 35.2 Total revenues 247.9 244.1 1,045.9 788.1 Operating expenses: Cost of sales 2.9 2.5 10.1 7.4 Research and development 66.7 55.3 275.0 200.0 Acquired in-process research and development -- 36.2 164.5 154.3 Selling, general and administrative 106.5 101.3 433.3 354.1 Total operating expenses 176.1 195.3 882.9 715.8 Operating income 71.8 48.8 163.0 72.3 Other (expense) income: Interest expense (7.8) (8.2) (32.8) (32.0) Unrealized loss on equity securities (5.5) (7.2) (17.7) (13.0) Loss on extinguishment of convertible senior notes (18.4) -- (18.4) -- Investment income and other, net 1.6 5.2 12.6 19.2 Total other expense, net (30.1) (10.2) (56.3) (25.8) Income before (benefit from) provision for income taxes 41.7 38.6 106.7 46.5 (Benefit from) provision for income taxes (306.2) 4.6 (300.6) 9.5 Net income $ 347.9 $ 34.0 $ 407.3 $37.0 Net income per share, basic $ 3.72 $ 0.37 $ 4.38 $0.40 Net income per share, diluted $ 3.58 $ 0.35 $ 4.16 $0.39 Weighted average common shares outstanding, basic 93.5 92.2 93.1 91.6 Weighted average common shares outstanding, diluted 97.2 97.2 97.8 95.7 TABLE 2 NEUROCRINE BIOSCIENCES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) December 31, December 31, (in millions) 2020 2019 Cash, cash equivalents and debt securities available-for-sale $ 801.0 $ 670.5 Other current assets 215.2 160.5 Total current assets 1,016.2 831.0 Debt securities available-for-sale 227.1 299.7 Right-of-use assets 82.8 74.3 Equity securities 38.2 55.9 Property and equipment, net 44.6 41.9 Deferred tax assets 319.4 -- Restricted cash and other long-term assets 6.4 3.2 Total assets $ 1,734.7 $ 1,306.0 Convertible senior notes $ -- $ 408.8 Other current liabilities 186.5 156.5 Total current liabilities 186.5 565.3 Convertible senior notes 317.9 -- Operating lease liabilities 94.4 86.7 Other long-term liabilities 9.7 17.1 Stockholders' equity 1,126.2 636.9 Total liabilities and stockholders' equity $ 1,734.7 $ 1,306.0 TABLE 3 NEUROCRINE BIOSCIENCES, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, (in millions, except per share data) 2020 2019 2020 2019 GAAP net income $ 347.9 $ 34.0 $ 407.3 $37.0 Adjustments: Milestones received from licenses and collaborations (A) -- -- (30.0) (20.0) Non-cash collaboration revenue (B) (0.9) (0.9) (2.7) (0.9) Acquired in-process research and development (IPR&D) (C) -- 36.2 164.5 154.3 Milestones paid related to licenses and collaborations - R&D -- -- 20.0 10.0 Share-based compensation expense - R&D 7.3 7.4 33.7 25.8 Share-based compensation expense - SG&A 13.7 13.9 66.3 49.5 Loss on extinguishment of convertible senior notes (D) 18.4 -- 18.4 -- Non-cash interest related to convertible senior notes 5.2 5.2 21.4 20.3 Changes in fair value of equity security investments (E) 5.5 7.2 17.7 13.0 Income tax effect related to reconciling items (F) (309.0) (0.8) (314.3) (5.2) Non-GAAP net income $ 88.1 $ 102.2 $ 402.3 $283.8 Net income per diluted common share: GAAP $ 3.58 $ 0.35 $ 4.16 $0.39 Non-GAAP $ 0.91 $ 1.05 $ 4.11 $2.96 (A) During 2020, the Company recognized a $30.0 million event-based milestone as revenue upon FDA approval for ORIAHNN for uterine fibroids. During 2019, the Company recognized a $20.0 million event-based milestone as revenue upon FDA acceptance of the New Drug Application for elagolix for uterine fibroids. (B) The Company recognized non-cash collaboration revenue under the collaboration and license agreement entered into with Mitsubishi Tanabe Pharma Corporation in 2015. (C) The Company incurred IPR&D expenses of $164.5 million during 2020 in association with the exclusive license agreement entered into with Takeda Pharmaceutical and the collaboration and license agreement entered into with Idorsia Pharmaceuticals. During 2019, the Company incurred IPR&D expenses of $154.3 million in association with collaboration and license agreements entered into with Voyager Therapeutics and Xenon Pharmaceuticals. (D) The Company recognized a loss on extinguishment of $18.4 million related to the partial repurchase of its convertible debt in the fourth quarter of 2020. (E) The Company recognized an unrealized loss to adjust its equity security investments to fair value. (F) Estimated income tax effect of non-GAAP reconciling items are calculated using applicable statutory tax rates, taking into consideration any valuation allowance. In the fourth quarter of 2020, the Company recognized a non-cash tax benefit of approximately $296 million related to the release of substantially all of its valuation allowance against its deferred tax assets on December 31, 2020. The fourth quarter 2020 benefit associated with the valuation allowance release has been excluded from non-GAAP net income. TABLE 4 NEUROCRINE BIOSCIENCES, INC. RECONCILIATION OF GAAP TO NON-GAAP EXPENSES (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, (in millions) 2020 2019 2020 2019 GAAP R&D $ 66.7 $55.3 $ 275.0 $ 200.0 Adjustments: Milestones paid related to licenses and collaborations -- -- 20.0 10.0 Share-based compensation expense 7.3 7.4 33.7 25.8 Non-GAAP R&D $ 59.4 $47.9 $ 221.3 $ 164.2 GAAP SG&A $ 106.5 $101.3 $ 433.3 $ 354.1 Adjustments: Share-based compensation expense 13.7 13.9 66.3 49.5 Non-GAAP SG&A $ 92.8 $87.4 $ 367.0 $ 304.6

report on Form 10-Q for the quarter ended September 30, 2020. Neurocrine disclaims any obligation to update the statements contained in this press release after the date hereof.

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SOURCE Neurocrine Biosciences, Inc.

/CONTACT: Neurocrine Biosciences, Inc., Navjot Rai (Media), 858-617-7623, media@neurocrine.com, Todd Tushla (Investors), 858-617-7143, ir@neurocrine.com

/Web site: http://www.neurocrine.com

(END) Dow Jones Newswires

February 04, 2021 16:01 ET (21:01 GMT)