Xeris Biopharma Gains 7% as Corcept's FDA Setback Boosts Investor Sentiment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 01 2026
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Source: NASDAQ.COM
- Stock Surge: Xeris Biopharma's stock rose over 7% on Wednesday as investors reacted positively to the news that competitor Corcept Therapeutics' drug was not approved by the FDA, reflecting optimism about Xeris's market prospects.
- Market Opportunity: Analyst Glen Santangelo reiterated a buy rating on Xeris with a $10 price target, forecasting that the addressable market for Cushing's disease could grow from $1 billion to $3 billion by 2030, positioning Xeris to benefit significantly.
- FDA Response: Corcept's complete response letter from the FDA cited a lack of additional evidence for the drug's effectiveness as the main reason for the rejection, allowing Xeris's Recorlev to maintain its market dominance.
- Clinical Trial Challenges: Although Corcept has vowed to continue seeking approval, this will likely require more clinical trials, which could diminish its competitive edge, further solidifying Xeris's position in the market.
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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 91.00 USD with a low forecast of 50.00 USD and a high forecast of 121.00 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.
6 Analyst Rating
4 Buy
1 Hold
1 Sell
Moderate Buy
Current: 44.610
Low
50.00
Averages
91.00
High
121.00
Current: 44.610
Low
50.00
Averages
91.00
High
121.00
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.
Corcept Therapeutics Faces FDA Rejection of New Drug Application
- FDA Rejection: Corcept Therapeutics' New Drug Application for the hormonal disorder therapy relacorilant was rejected by the FDA, leading to a nearly 16% drop in premarket trading, indicating market concerns about the drug's prospects.
- Lack of Data Support: The FDA's updated Complete Response Letter indicated that it could not determine a favorable benefit-risk assessment for the drug without additional data, reflecting the agency's stringent requirements for drug safety and efficacy.
- Indication Context: The NDA aimed to provide treatment options for patients with high blood pressure related to hormonal disorders (Cushing's syndrome), and the FDA's rejection signifies a significant setback for Corcept in this market.
- Market Reaction Analysis: The FDA's decision not only impacts investor confidence but may also delay the company's market entry in the hormonal disorder space, further affecting its future revenue expectations and strategic planning.
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FDA Refuses Approval for Corcept's Relacorilant Drug
- FDA Rejection: The U.S. FDA refused to approve Corcept's Relacorilant in December, citing insufficient clinical trial results to demonstrate effectiveness in treating hypercortisolism, leading to an 11% drop in the company's stock on Friday, reflecting strong market reaction to the decision.
- CEO's Response: Corcept CEO Joseph K. Belanoff expressed surprise and disappointment at the FDA's decision and committed to meeting with the agency to discuss a path forward, indicating the company's ongoing dedication to drug development despite setbacks.
- Clinical Data Requirements: The FDA's refusal letter highlighted the need for new clinical data to address concerns regarding Relacorilant's efficacy and risks of drug-induced liver injury, which may necessitate a full re-do of late-stage trials, potentially delaying the drug's market entry.
- Market Sentiment Shift: On Stocktwits, retail sentiment around CORT stock remained in the 'bearish' territory, although chatter improved from 'extremely low' to 'low' levels over the past 24 hours, indicating mixed investor reactions to the FDA rejection and future prospects.
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