Should You be Optimistic on Neurocrine Biosciences (NBIX)?

PGIM, an investment management company, released its “PGIM Jennison Health Sciences Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equities in the second quarter of 2025 experienced significant volatility, as the steep sell-off that initiated at the beginning of the quarter ultimately led to a strong recovery. The S&P 1500 Health Care Index declined 6.9% in the second quarter, underperforming the S&P 500’s 10.9% return. Health care providers & services, life sciences tools & services, biotechnology, and pharmaceuticals underperformed the Index in the quarter. While healthcare technology and medtech gained in the quarter. In June, the S&P 1500 Health Care Index (the Index) gained 1.9%, lagging the S&P 500, which advanced 5.1%. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, PGIM Jennison Health Sciences Fund highlighted stocks such as Neurocrine Biosciences, Inc. (NASDAQ:NBIX). Neurocrine Biosciences, Inc. (NASDAQ:NBIX) engages in the development and marketing of pharmaceuticals for neurological, neuroendocrine, and neuropsychiatric disorders. The one-month return of Neurocrine Biosciences, Inc. (NASDAQ:NBIX) was 5.56%, and its shares gained 26.52% of their value over the last 52 weeks. On September 24, 2025, Neurocrine Biosciences, Inc. (NASDAQ:NBIX) stock closed at $146.67 per share, with a market capitalization of $14.547 billion.

PGIM Jennison Health Sciences Fund stated the following regarding Neurocrine Biosciences, Inc. (NASDAQ:NBIX) in its second quarter 2025 investor letter:

"Neurocrine Biosciences, Inc. (NASDAQ:NBIX) the continued recovery of Neurocrine post what increasingly looks like a guidance mistake rather than an operational issue, as they reported stronger than expected 1Q results and continue to sound optimistic about 2Q as well."

Neurocrine Biosciences, Inc. (NASDAQ:NBIX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 59 hedge fund portfolios held Neurocrine Biosciences, Inc. (NASDAQ:NBIX) at the end of the second quarter, down from 63 in the previous quarter. While we acknowledge the potential of Neurocrine Biosciences, Inc. (NASDAQ:NBIX) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Neurocrine Biosciences, Inc. (NASDAQ:NBIX) and shared the list of best drug stocks to buy. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.