Neurocrine Biosciences (NASDAQ: NBIX) had some major news to report several days ago, but it was hardly beneficial to the company's stock. The latest information from the lab dampened enthusiasm for the company, sending its share price down by 16% week to date as of early Friday morning, according to data compiled by S&P Global Market Intelligence.

One clear success out of four

Biotechs such as Neurocrine are very heavily dependent on the medications they develop and (ideally) bring to market. Neurocrine's news concerned its investigational drug for the treatment of schizophrenia, NBI-'568, which was put through its paces in a phase 2 clinical trial.

Early Wednesday, Neurocrine reported the results of that trial. On the surface these appeared encouraging -- one of the four doses of the orally administered drug met its primary endpoint, producing a significant reduction of symptoms when compared to a placebo. However the three other doses did not demonstrate such a significant difference between drug and placebo.

Rather uncomfortably, the best performer was the lowest of the four doses. Typically with successful drug trials, all things being equal, higher doses tend to be more efficacious.

Nevertheless, Neurocrine waxed positive about the readout. Chief Medical Officer Eiry Roberts said the trial "delivered on our goal of identifying a once-daily, well tolerated dosing regimen with a compelling and competitive benefit-risk profile."

Phase 3 testing to begin next year

Neurocrine is forging ahead with the development of the schizophrenia treatment. It said it would advance it to a phase 3 trial in 2025. It did not get more specific about timing.

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