Wednesday, Neurocrine Biosciences, Inc. (NASDAQ: NBIX) topline data for its Phase 2 clinical study of NBI-1117568 (NBI-'568) in adults with schizophrenia.

The new data showed that the once-daily 20 mg dose of NBI-'568 induced an average 18.2-point reduction from baseline in the Positive and Negative Syndrome Scale (PANSS) after six weeks, compared to 10.8 points in the placebo group.

That 7.5-point difference reached statistical significance with a p-value of p=0.011.

The company noted that none of the other three higher-dosing groups (30, 40, and 60 mg) reached statistical significance.

Piper Sandler upgraded the stock from Neutral to Overweight, with a price target of $159, up from $131, noting that data around 20 mg puts '568 squarely "in the game."

"Though the hand-wringing over Phase 2 data for NBI-1117568 in adults with schizophrenia, is not lost on us."

The 20 mg dose positions '568 as a strong contender among selective muscarinic agonists, offering a promising alternative in the antipsychotic field that moves away from the safety concerns associated with atypical antipsychotics, the analyst notes.

In a field where individualized treatment responses and frequent cycling between options are common, adding another selective muscarinic agonist, even one with a similar profile, holds value. Though the analyst notes that there's still much to learn about '568, but its inclusion in the treatment arsenal is beneficial.

Price Action: NBIX stock is up 3.64% at $128.26 at the last check on Thursday.

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