Corcept Therapeutics (CORT – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst on January 22. Analyst Roanna Ruiz from Leerink Partners remains neutral on the stock and has a $23.00 price target.
Geoff Meacham has given his Hold rating due to a combination of factors that impact Corcept Therapeutics’ financial outlook. A key concern is the legal challenge with Teva Pharmaceuticals concerning Corcept’s flagship product, Korlym, which is at risk of facing generic competition sooner than expected. Despite the company’s improved revenue guidance for FY24, which exceeded both Leerink Partners’ and the consensus estimates, the potential introduction of a generic alternative by Teva could significantly reduce the commercial success of Corcept’s treatment for Cushing’s syndrome. Additionally, there are uncertainties surrounding the appeal process against the unfavorable court ruling, which could take more than a year to resolve and carries a risk of being unsuccessful.
Another consideration for the Hold rating is the potential impact of generic competition on the uptake of Corcept’s investigational drug, relacorilant. Feedback from key opinion leaders indicates mixed interest in switching stable patients to new branded treatments if a generic with a similar mechanism of action is available. Furthermore, insurance payers might be reluctant to grant favorable coverage for relacorilant close to its anticipated launch if a generic version of Korlym is already on the market. These factors, combined with the upcoming readout from the phase 3 GRACE study and the ongoing litigation, are likely to be closely watched by investors, reinforcing the cautious stance represented by the Hold rating.
See the top stocks recommended by analysts >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Corcept Therapeutics (CORT) Company Description:
Corcept Therapeutics, Inc. is a commercial-stage pharmaceutical company, which engages in the discovery, development and commercialization of medications to treat severe metabolic, oncologic and psychiatric disorders. It focuses on the development of drugs for disorders that are associated with a steroid hormone called cortisol. Its products include korlym and korlym support. The company was founded by David B. Singer and Joseph K. Belanoff on May 13, 1998 and is headquartered in Menlo Park, CA.
Read More on CORT:
- Corcept Therapeutics price target raised to $61 from $50 at Ladenburg
- Corcept Therapeutics announces $200M stock buyback
- Corcept Therapeutics guides FY24 revenue at $600M-$630M, consensus $513.9M
- Corcept Therapeutics sees Q4 revenue at $135.4M, consnesus $127.9M
- Biotech Alert: Searches spiking for these stocks today
