Corcept Therapeutics (CORT) Rockets On FDA Approval; Analyst Sees Peak U.S. Sales of $300M

February 21, 2012 8:15 AM EST
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Price: $7.40 -2.63%

Rating Summary:
    7 Buy, 3 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Shares of Corcept Therapeutics (Nasdaq: CORT) are surging over 60 percent in pre-open trading Tuesday after the company announced late Friday that the FDA approved Korlym for the treatment of Cushing's disease in patients who have failed surgery or are not candidates for surgery.

Analyst at Oppenheimer commented following the approval. They noted that approval was controversial because because it is a reformulation of the "abortion pill." They als note Korlym received an orphan drug designation, which grants Corcept marketing exclusivity through February 2019.

The firm is projecting peak market penetration of 25%, pricing of $150K/patient year,
which results in US peak sales of close to $300M. "At this time we are modeling
a partnership for Ex-US commercialization, but we are awaiting the company's
announcement on the regulatory and commercial strategy Ex-US," the analyst commented.

They also remind investors that Korlym showed encouraging proof of concept data in psychotic major depression, but had problems with dosing variability between patients in Phase III studies. The company plans to advance Korlym further for this indication, although the stock gets very little credit for this indication at this time, the firm notes.

For an analyst ratings summary and ratings history on Corcept Therapeutics click here. For more ratings news on Corcept Therapeutics click here.

Shares of Corcept Therapeutics closed at $3.03 yesterday.

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