Corcept (CORT) Posts In-Line Q1 Earnings, Korlym in Focus
Corcept Therapeutics Incorporated CORT reported earnings (including stock-based compensation but excluding accretion of interest) of a penny per share in the first quarter of 2016, in line with the Zacks Consensus Estimate. Excluding these expenses, earnings came in at 2 cents per share. The company had reported a loss of 5 cents per share in the year-ago quarter.
Revenues came in at $16.1 million, up 58.9% year over year and again in line with the Zacks Consensus Estimate.
Research and development expenses increased 5.9% to $4.6 million. Selling, general and administrative expenses were $10.4 million, up 10.4%. The increase in operating expenses was primarily due to higher patient support costs, compensation and professional services costs associated with the company’s expanded field sales force, additional distribution expenses due to higher sales volume, and an increase in spending related to the clinical development of CORT125134.
Pipeline Update
Corcept expects efficacy and safety results from a phase I/II study on Korlym, in combination with Eisai Co., Ltd.’s ESALY Halaven, for the treatment of triple-negative breast cancer in mid-2016.
Meanwhile, Corcept has initiated a phase I/II study on CORT125134, its next-generation selective cortisol modulator for the treatment of one or more types of solid tumor cancer. The company plans to initiate a phase II study on the candidate for the treatment of Cushing’s syndrome in the second quarter of 2016. The company has also advanced selective cortisol modulators – CORT118335, CORT122928 and CORT125281 – to a phase I study.
2016 Outlook
Corcept reiterated its revenue guidance for 2016. The company expects revenues to be in the range of $76 million to $81 million.
Our Take
Corcept’s first-quarter results were mostly on par with our expectations. Going ahead, we expect investor focus on efficacy and safety results from the phase I/II study on Korlym in combination with Halaven for the treatment of triple-negative breast cancer. A potential label expansion of the drug would boost the top line.
Corcept currently holds a Zacks Rank # 3 (Hold). A couple of better-ranked stocks in the healthcare sector include Shire SHPG and Nektar Therapeutics NKTR, both carrying a Zacks Rank #2 (Buy).
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