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Corcept (CORT) Falls on Loss of Korlym Patent Lawsuit to Teva
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Shares of Corcept Therapeutics Incorporated (CORT - Free Report) were down 38.4% on Dec 29 after the United States district court for the district of New Jersey passed its judgment on the company’s patent infringement lawsuit against Teva Pharmaceuticals (TEVA - Free Report) .
The patent infringement lawsuit was related to Corcept’s sole marketed drug, Korlym (mifepristone), which is approved for treating Cushing’s syndrome.
The United States district court ruled in favor of Teva as Corcept did not meet its burden of proof and failed to demonstrate the likelihood of direct infringement of its patent by Teva.
The patents in question are U.S. Patent No. 10,195,214 (the ??214 patent) and U.S. Patent No. 10,842,800 (the “’800 patent”).
Teva has been looking to market and sell a generic version of Korlym prior to the expiration of patents related to the drug. Teva has already filed an abbreviated new drug application (ANDA), No. 211436, to the FDA seeking approval for its generic version of Korlym.
Following this, Corcept initiated the abovementioned lawsuit, alleging patent infringement and seeking a permanent injunction to restrict TEVA from launching its generic version of Korlym.
In August 2020, Teva received the FDA approval for its ANDA in accordance with the Hatch-Waxman Act.
We note that Teva has been very active in entering into settlement agreements. The company has a record of successfully resolving patent challenges.
Shares of Corcept were down in pre-market trading on Jan 2. However, the stock has rallied 61% in the past year compared with the industry’s rise of 1.8%.
Image Source: Zacks Investment Research
Korlym has been the sole revenue driver for Corcept. Korlym recorded sales of $346.9 million in the first nine months of 2023.
The judgment passed by the district judge is likely to open doors for early generic competition. This, in turn, is likely to hurt Korlym sales in 2024 and beyond, as the drug will face erosion in sales from generic entrants.
In the past 60 days, estimates for Rigel Pharmaceuticals’ 2024 loss per share have narrowed from 15 cents to 8 cents. In the past year, shares of RIGL have gained 8.2%.
Earnings of Rigel Pharmaceuticals beat estimates in each of the last four quarters. RIGL delivered a four-quarter average earnings surprise of 58.14%.
In the past 60 days, estimates for Puma Biotechnology’s 2024 earnings per share have improved from 56 cents to 69 cents. In the past year, shares of PBYI have gained 4.8%.
Earnings of Puma Biotechnology beat estimates in three of the last four quarters while missing the same on the remaining one occasion. PBYI delivered a four-quarter average earnings surprise of 76.55%.
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Corcept (CORT) Falls on Loss of Korlym Patent Lawsuit to Teva
Shares of Corcept Therapeutics Incorporated (CORT - Free Report) were down 38.4% on Dec 29 after the United States district court for the district of New Jersey passed its judgment on the company’s patent infringement lawsuit against Teva Pharmaceuticals (TEVA - Free Report) .
The patent infringement lawsuit was related to Corcept’s sole marketed drug, Korlym (mifepristone), which is approved for treating Cushing’s syndrome.
The United States district court ruled in favor of Teva as Corcept did not meet its burden of proof and failed to demonstrate the likelihood of direct infringement of its patent by Teva.
The patents in question are U.S. Patent No. 10,195,214 (the ??214 patent) and U.S. Patent No. 10,842,800 (the “’800 patent”).
Teva has been looking to market and sell a generic version of Korlym prior to the expiration of patents related to the drug. Teva has already filed an abbreviated new drug application (ANDA), No. 211436, to the FDA seeking approval for its generic version of Korlym.
Following this, Corcept initiated the abovementioned lawsuit, alleging patent infringement and seeking a permanent injunction to restrict TEVA from launching its generic version of Korlym.
In August 2020, Teva received the FDA approval for its ANDA in accordance with the Hatch-Waxman Act.
We note that Teva has been very active in entering into settlement agreements. The company has a record of successfully resolving patent challenges.
Shares of Corcept were down in pre-market trading on Jan 2. However, the stock has rallied 61% in the past year compared with the industry’s rise of 1.8%.
Korlym has been the sole revenue driver for Corcept. Korlym recorded sales of $346.9 million in the first nine months of 2023.
The judgment passed by the district judge is likely to open doors for early generic competition. This, in turn, is likely to hurt Korlym sales in 2024 and beyond, as the drug will face erosion in sales from generic entrants.
Zacks Rank & Stocks to Consider
Corcept currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the healthcare sector are Rigel Pharmaceuticals Inc. (RIGL - Free Report) and Puma Biotechnology, Inc. (PBYI - Free Report) , sporting a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Rigel Pharmaceuticals’ 2024 loss per share have narrowed from 15 cents to 8 cents. In the past year, shares of RIGL have gained 8.2%.
Earnings of Rigel Pharmaceuticals beat estimates in each of the last four quarters. RIGL delivered a four-quarter average earnings surprise of 58.14%.
In the past 60 days, estimates for Puma Biotechnology’s 2024 earnings per share have improved from 56 cents to 69 cents. In the past year, shares of PBYI have gained 4.8%.
Earnings of Puma Biotechnology beat estimates in three of the last four quarters while missing the same on the remaining one occasion. PBYI delivered a four-quarter average earnings surprise of 76.55%.