Recently, a U.S. District Court ruling opened the door for Teva to potentially launch a generic version of Corcept Therapeutics Inc.'s (CORT:NASDAQ) lead Cushing's syndrome drug Korlym prior to patent expiration, noted H.C. Wainwright & Co. analysts Dr. Swayampakula Ramakanth, Dr. Arthur He, Sam Lee, and Dr. Li Chen in a January 2 research note. However, the analysts noted launching a generic poses financial risks for Teva and will require significant commercial investment, likely delaying market entry.
Though the analysts conservatively reduced their Korlym sales forecasts through 2030 to account for generic erosion, they remain bullish on Corcept's market-leading cortisol modulation franchise long term.
Beyond the flagship, Corcept aims to file a new drug application (NDA) in 2024 for second-generation candidate relacorilant showing improved selectivity and tolerability in Cushing's patients. Initial results from a Phase 4 study called CATALYST evaluating relacorilant's potential in diabetic patients could significantly expand Corcept's addressable patient population if positive.
Despite the court decision introducing uncertainty, the analysts still see upside for Corcept shares trading around US$32. They lowered their price target to US$28 but kept a Buy rating, seeing promise in both near-term pipeline catalysts and the company's dominant standing in treating Cushing's syndrome.
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Disclosures for H.C. Wainwright & Co., Corcept Therapeutics Inc., January 2, 2024
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H.C. WAINWRIGHT & CO, LLC RATING SYSTEM: H.C. Wainwright employs a three tier rating system for evaluating both the potential return and risk associated with owning common equity shares of rated firms. The expected return of any given equity is measured on a RELATIVE basis of other companies in the same sector. The price objective is calculated to estimate the potential movements in price that a given equity could reach provided certain targets are met over a defined time horizon. Price objectives are subject to external factors including industry events and market volatility.
H.C. Wainwright & Co, LLC (the “Firm”) is a member of FINRA and SIPC and a registered U.S. Broker-Dealer.
I, Swayampakula Ramakanth, Ph.D., Arthur He, Ph.D., Sean Lee and Li Chen, Ph.D. , certify that 1) all of the views expressed in this report accurately reflect my personal views about any and all subject securities or issuers discussed; and 2) no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report; and 3) neither myself nor any members of my household is an officer, director or advisory board member of these companies.
None of the research analysts or the research analyst’s household has a financial interest in the securities of Corcept Therapeutics Inc. (including, without limitation, any option, right, warrant, future, long or short position).
As of November 30, 2023 neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of Corcept Therapeutics Inc..
Neither the research analyst nor the Firm knows or has reason to know of any other material conflict of interest at the time of publication of this research report.
The research analyst principally responsible for preparation of the report does not receive compensation that is based upon any specific investment banking services or transaction but is compensated based on factors including total revenue and profitability of the Firm, a substantial portion of which is derived from investment banking services.
The Firm or its affiliates did not receive compensation from Corcept Therapeutics Inc. for investment banking services within twelve months before, but will seek compensation from the companies mentioned in this report for investment banking services within three months following publication of the research report.
The Firm does not make a market in Corcept Therapeutics Inc. as of the date of this research report.
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