Corcept Therapeutics Incorporated (NASDAQ: CORT) faced a setback as its stock plummeted by 26.8% following a court ruling in a patent infringement case. The company announced that the court for the district of New Jersey issued a decision that Teva Pharmaceuticals does not infringe any asserted claims of Corcept's U.S. patents 10,195,214 and 10,842,800, both of which concern methods of safely administering Korlym® with drugs that are strong CYP3A4 inhibitors.
"This disappointing decision is based on legal and factual errors we are confident will be reversed on appeal," said Joseph K. Belanoff, MD, Corcept's Chief Executive Officer. "Our patents describe medical discoveries that have greatly expanded the therapeutic options available to patients suffering from Cushing's syndrome, which is why the FDA added them to Korlym's prescribing instructions. Doctors have followed these instructions and will continue to do so to safely treat patients. Failure to recognize the novelty and import of discoveries like these would fundamentally change the law, to the detriment of the many patients whom innovative companies seek to serve."
"We will pursue our appeal vigorously and will continue to assert our intellectual property rights whenever they are infringed," added Dr. Belanoff.
For more than 25 years, Corcept's focus on cortisol modulation and its potential to treat patients across a wide variety of serious disorders has led to the discovery of more than 1,000 proprietary selective cortisol modulators. The company's advanced clinical trials are being conducted in patients with hypercortisolism, solid tumors, amyotrophic lateral sclerosis (ALS), and liver disease (NASH). In February 2012, the company introduced Korlym, the first medication approved by the U.S. Food and Drug Administration for the treatment of patients with Cushing's syndrome.
The company's full 8-K submission is available here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (k) | $251,247 | $306,486 | $353,874 | $365,978 | $401,858 | $450,026 |
| Revenue Growth | n/a | 21.99% | 15.46% | 3.42% | 9.8% | 11.99% |
| Operating Margins | 36% | 36% | 36% | 34% | 28% | 22% |
| Net Margins | 30% | 31% | 30% | 31% | 25% | 20% |
| Net Income (k) | $75,410 | $94,181 | $106,011 | $112,512 | $101,418 | $91,386 |
| Earnings Per Share | $0.6 | $0.77 | $0.85 | $0.89 | $0.87 | $0.8 |
| Diluted Shares (k) | 126,688 | 122,566 | 124,194 | 125,963 | 115,966 | 111,099 |
| Capital Expenditures | $298 | $1,088 | $1,238 | $469 | $413 | $170 |
| Current Ratio | 6.66 | 7.91 | 10.07 | 5.6 | 6.89 | 3.54 |
Corcept Therapeutics has growing revenues and decreasing reinvestment in the business, decent operating margins with a negative growth trend, and positive EPS growth. However, the firm has irregular cash flows.
