CORT's Q1 Earnings In Line With Estimates, Revenues Lag, Shares Fall

Core Insights - Corcept Therapeutics reported first-quarter 2025 earnings of 17 cents per share, matching the Zacks Consensus Estimate, but down from 25 cents per share in the same quarter last year [1] - Revenues for the first quarter increased by 7.1% year over year to $157.2 million, but fell short of the Zacks Consensus Estimate of$178 million, primarily driven by sales of the Cushing's syndrome drug, Korlym [2][5] - Year-to-date, Corcept's shares have increased by 46.8%, contrasting with a 0.4% decline in the industry [4] Financial Performance - Korlym sales were impacted by the inability of a specialty pharmacy vendor to meet the surge in demand, leading to lower-than-expected sales and a 7.5% drop in shares during after-hours trading following the earnings announcement [5] - Research and development expenses rose by 3.8% year over year to $60.7 million, while selling, general, and administrative expenses surged by approximately 61.1$90.7 million, resulting in total operating expenses increasing by 31.1% to $153.8 million [6] - As of March 31, 2025, cash and investments totaled$570.8 million, down from $603.2 million as of December 31, 2024 [6] 2025 Guidance - Corcept reiterated its total revenue guidance for 2025, expecting revenues in the range of$900-$950 million, with the Zacks Consensus Estimate at$905.7 million [7] Pipeline Developments - Corcept is advancing its lead candidate, relacorilant, for Cushing's syndrome, with a new drug application submitted to the FDA in December 2024 based on positive data from the GRACE study and other trials [8] - The FDA accepted the NDA in March 2025, with a target action date of December 30, 2025 [9] - Corcept is also exploring relacorilant in combination studies for various cancer indications, with the phase III ROSELLA study meeting its primary endpoint for patients with platinum-resistant ovarian cancer [9] Additional Studies - Corcept initiated the phase II BELLA study to evaluate relacorilant in combination with nab-paclitaxel and Avastin for treating platinum-resistant ovarian cancer [10] - The company is also assessing relacorilant plus Xtandi in early-stage prostate cancer patients in collaboration with the University of Chicago [11] - Data from the phase II DAZALS study for dazucorilant in ALS did not meet its primary endpoint, but exploratory analysis showed improved overall survival for treated patients [12][13] Market Position - Corcept currently holds a Zacks Rank 3 (Hold), with better-ranked biotech stocks including ADMA Biologics and Immunocore Holdings, both carrying a Zacks Rank 2 (Buy) [14]