Back to top

Image: Bigstock

Corcept (CORT) Up More Than 20% in Past 3 Months: Here's Why

Read MoreHide Full Article

Shares of Corcept Therapeutics Incorporated (CORT - Free Report) have rallied 22.1% in the past three months compared with the industry’s rise of 6.9%.

Corcept’s only marketed drug, Korlym, is approved for the once-daily oral treatment of hyperglycemia — secondary to hypercortisolism — in adult patients with endogenous Cushing’s syndrome who are suffering from type II diabetes or glucose intolerance and have already failed surgery or are unsuitable for the same. The company has made good progress during this period with Korlym, which has been a consistent revenue driver since its approval.

The company’s top line solely comprises Korlym sales, which witnessed a year-over-year increase during the first six months of 2022.

Zacks Investment Research
Image Source: Zacks Investment Research

Corcept’s lead pipeline candidate, relacorilant, is being evaluated in the phase III GRACE study to treat Cushing’s syndrome. A new drug application for relacorilant is expected to be submitted in the second half of 2023.

Relacorilant is also being investigated in phase III of the GRADIENT study in patients whose Cushing’s syndrome is caused by adrenal adenoma.

A phase Ib study is evaluating relacorilant in combination with Merck’s (MRK - Free Report) PD-1 checkpoint inhibitor, Keytruda (pembrolizumab), for treating patients suffering from adrenal cancer along with cortisol excess.

Merck’s biggest revenue generator, Keytruda, is approved for treating several types of cancer indications. MRK continues to study Keytruda for addressing more cancer indications.

Relacorilant, in combination with nab-paclitaxel, is also being evaluated in the phase III ROSELLA study for the treatment of patients with platinum-resistant ovarian cancer.

Corcept’s other pipeline candidates are also progressing well.

The company is evaluating miricorilant in the phase II GRATITUDE study for treating the reversal of antipsychotic-induced weight gain (“AIWG”). The phase II GRATITUDE 2 study is investigating miricorilant to reverse long-standing AIWG. Data from both studies are expected by the end of 2022.

CORT is conducting a phase Ib dose-finding study investigating miricorilant in patients with presumed non-alcoholic steatohepatitis. Data from the same is also expected in the fourth quarter of 2022.

The successful development and potential approval of other candidates will lend a big boost to Corcept and likely lower its dependence on Korlym.

Corcept is riding on the success of Korlym, which has seen a strong uptake so far. However, the company remains heavily dependent on Korlym for growth. Moreover, its pipeline is still some years away from commercialization. Hence, a decline in Korlym sales will significantly hurt the company’s prospects.

Zacks Rank & Stocks to Consider

Corcept currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same sector are Ayala Pharmaceuticals, Inc. (AYLA - Free Report) and Fusion Pharmaceuticals Inc. (FUSN - Free Report) , both carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Ayala Pharmaceuticals’ loss per share estimates have narrowed 8.6% for 2022 and 17.5% for 2023 in the past 60 days.

Earnings of Ayala Pharmaceuticals surpassed estimates in each of the trailing four quarters. AYLA delivered an earnings surprise of 9.91%, on average.

Fusion Pharmaceuticals’ loss per share estimates have narrowed 8.5% for 2022 and 14.8% for 2023 in the past 60 days.

Earnings of Fusion Pharmaceuticals surpassed estimates in each of the trailing four quarters. FUSN delivered an earnings surprise of 16.22%, on average.

Published in