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Narrower-than-Expected Loss at Corcept

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Corcept Therapeutics Inc. (CORT - Free Report) posted a loss per share of 11 cents in the third quarter of 2013, narrower than the Zacks Consensus Estimate of a loss of 12 cents, but wider than the year-ago loss of 8 cents.

Corcept generated revenues of $2.6 million in the third quarter of 2013, in line with the Zacks Consensus Estimate. Revenues jumped 149.7% y/y.

In Apr 2012, Corcept launched its drug, Korlym, in the U.S. Korlym is approved in the U.S. and the EU as a once-daily oral medication for the treatment of hyperglycemia secondary to hypercortisolism in adults suffering from endogenous Cushing’s syndrome, who have type II diabetes or glucose intolerance.

We note that Corcept enjoys orphan drug designation for Korlym from the FDA for the approved indication.

Selling, general and administrative expenses were $7.2 million in the third quarter of 2013, up 26.1% from the year-ago quarter. The increase was mainly due to higher staffing, consultancy and other professional services costs related to the commercialization of Korlym.

Research and development expenses surged 71.4% in the third quarter to $5.1 million. The increase was mainly attributable to the expansion of the phase III trial on Korlym for the treatment of psychotic depression along with the development of the company’s next-generation selective GR-II antagonists.

2013 Outlook

Corcept expects revenues of $9.6 million in 2013, up from the Zacks Consensus Estimate of $9.0 million.

Pipeline Update

Corcept continues to enroll patients at a faster-than-expected rate for a phase III study on the use of Korlym for the treatment of psychotic depression. Interim results from the study are now expected in the second quarter of 2014, a quarter earlier than the previous estimate. 

Corcept’s key objective is the successful commercialization of Korlym.  Corcept has submitted its marketing authorization application to the European Medicines Agency (EMA) for approval to market Korlym for endogenous Cushing's syndrome in Europe under the brand name Corluxin.  Corcept expects a response from the EMA in the first quarter of 2014.

We are encouraged by the third quarter results and the company’s efforts to commercialize Korlym and develop it for additional indications.

However, shares were down 2.44% in after marketing trading.  Corcept currently carries a Zacks Rank #3 (Hold). Right now, Shire (SHPG - Free Report) , Salix Pharmaceuticals , and Forest Laboratories look attractive. While Shire is a Zacks Rank #1 (Strong Buy) stock, Salix Pharma and Forest Labs are Zacks Rank #2 (Buy) stocks.

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