VRTX is gapping lower, while NBIX is surging
Biopharmaceutical giants Vertex Pharmaceuticals Inc (NASDAQ:VRTX) and Neurocrine Biosciences Inc (NASDAQ:NBIX) are fresh out of the earnings confessional, with very different results. Vertex saw a first-quarter top- and bottom-line miss amid rising costs, while Neurocrine Biosciences beat first-quarter revenue estimates amid strong sales of its Ingrezza medication for movement disorders, which grew 8% year over year to $545 million.
VRTX was last seen down 12.5% at $437.84, trading at its lowest level since December and pacing for its worst single-day percentage loss since October 2020. Analyst reactions have been mixed, but most notably, Leerink downgraded the stock to "market perform" from "outperform" and cut its price objective to $503 from $550. Prior to today's losses, the $520 level capped an attempt to conquer a Nov. 8, record peak of $519.88, but VRTX is still up 9.9% in 2025.
Meanwhile, NBIX is up 13.3% at $124.35 after attracting six price-target hikes, including one from BofA Global Research to $183 from $179. Shares are on track for their third-straight gain and best day since November 2020, earlier hitting their highest level since February. The security still carries a 12.9% year-over-year deficit, however.
Options bulls are targeting VRTX and NBIX, with call volume running at 14 and 7 times the intraday average volume, respectively, though the latter is seeing low absolute volume. For VRTX, the most popular contract is the weekly June 500 call, where new positions are being opened. For NBIX the May 130 call is seeing the most activity.