Corcept Therapeutics Faces 50% Stock Drop After FDA Rejection of Relacorilant
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Regulatory Rejection: Corcept Therapeutics announced that its relacorilant drug failed to receive FDA approval, resulting in a stock price drop of over 50% during Tuesday's trading, significantly undermining investor confidence and impacting the company's market capitalization.
- Clinical Trial Results: Although the FDA acknowledged that the drug met its primary endpoint in late-stage trials, the regulator deemed that additional evidence of effectiveness was necessary, indicating that the drug's commercialization prospects face substantial challenges.
- Market Reaction: Following the FDA rejection announcement, Corcept's stock plummeted from $70.20 to $34.80, reducing its market cap to $7.4 billion, reflecting a pessimistic outlook from the market regarding its future developments.
- Future Plans: Despite this significant setback, Corcept stated it would continue to seek dialogue with the FDA and plans to conduct additional clinical trials to explore commercialization opportunities for the drug, demonstrating the company's long-term commitment to relacorilant.
Analyst Views on CORT
Wall Street analysts forecast CORT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CORT is 135.33 USD with a low forecast of 121.00 USD and a high forecast of 145.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
4 Buy
1 Hold
0 Sell
Strong Buy
Current: 70.195
Low
121.00
Averages
135.33
High
145.00
Current: 70.195
Low
121.00
Averages
135.33
High
145.00
About CORT
Corcept Therapeutics Incorporated is a commercial-stage company. The Company is engaged in the discovery and development of medications to treat severe endocrinologic, oncologic, metabolic and neurologic disorders by modulating the effects of the hormone cortisol. The Company operates through the discovery, development and commercialization of the pharmaceutical products segment. The Company has marketed Korlym (mifepristone) in the United States for the treatment of patients suffering from Cushings syndrome. The Company’s portfolio of selective cortisol modulators consists of four series totaling approximately 1,000 compounds. Its portfolio of selective cortisol modulators consists of relacorilant, dazucorilant and miricorilant. Korlyms active ingredient, mifepristone, reduces the binding of excess cortisol to the GR, it can modulate the effects of abnormal levels and release patterns of cortisol without compromising cortisols healthy functions and rhythms.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
