Neurocrine Biosciences Inc NBIX:NASDAQ

Neurocrine Biosciences' (NBIX) positive results from a late-stage study of its experimental Ingrezza valbenazine drug in adults with chorea tied to Huntington disease are adequate to support a label expansion and should add about $300 million to out-year revenue for the drug, according to RBC Capital Markets.

"With shares having come down substantially following a 3Q sales number we believe disappointed the Street, we believe today's de-risking HD data should clear the way for the stock to appreciate and better reflect Ingrezza's TD/HD growth prospects," RBC Analysts Brian Abrahams, Stephen Mallon and Leonid Timashev said in a note emailed Wednesday.

The investment firm lifted its price target on the drugmaker's stock to $122 from $119 with an outperform rating.

Neurocrine Biosciences shares were up nearly 3% in recent trading.

Price: 84.33, Change: +2.08, Percent Change: +2.53