Truist Securities upgraded their rating of Corcept Therapeutics (NASDAQ:CORT) to buy, citing the market potential for its drug relacorilant.
The investment bank said it predicated its rating on three bull theses: the approval and commercialization of relacorilant, which could expand the company’s Cushing syndrome franchise by more than 50%; expansion into difficult-to-treat diabetics who have Cushing’s as a comorbidity; and the drug’s expansion into oncology.
Truist said that while it is aware of the investigation by the US Attorney’s Office in New Jersey into the company’s sales practices, “our diligence failed to reveal any gross systematic sales misconduct by Corcept.”
The bank added that it wasn’t “as worried” about Teva’s generic challenge to Korlym, Corcept's drug for patients with endogenous Cushing’s syndrome with type 2 diabetes or glucose intolerance.
“We think clear line of sight towards three key upcoming catalysts coupled with high SI is a good setup for stock outperformance over the next 12 to 18 months,” Truist said, setting its price target at $38.
More on Corcept Therapeutics
- Corcept Therapeutics Incorporated (CORT) Q3 2023 Earnings Call Transcript
- Corcept Therapeutics: Far More Constructive With Korlym Resolve (Rating Upgrade)
- Corcept Therapeutics Q3 2023 Earnings Preview
- Corcept Therapeutics plunges amid patent trial with Teva (update)
- Seeking Alpha’s Quant Rating on Corcept Therapeutics