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Corcept (CORT) Up 15.1% Since Last Earnings Report: Can It Continue?

Zacks Equity Research

It has been about a month since the last earnings report for Corcept Therapeutics (CORT). Shares have added about 15.1% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Corcept due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Corcept Earnings & Revenues Miss Estimates in Q2

The company delivered second-quarter 2019 earnings of 17 cents per share, which missed the Zacks Consensus Estimate of 18 cents.

However, excluding non-cash expenses related to stock-based compensation and the utilization of deferred tax assets, and related income tax effects, adjusted earnings came in at 25 cents per share compared with 20 cents in the year-ago quarter.

Although revenues in the second quarter rose 16% from the prior-year period to $72.3 million, the metric lagged the Zacks Consensus Estimate of $73 million.

Research and development expenses increased 5.4% to $21.7 million.While selling, general and administrative expenses escalated 23.1% to $24.6 million.

Pipeline Update

Corcept’s proprietary, selective cortisol modulator is relacorilant. Last November, it dosed the first patient in the phase III GRACE study of relacorilant to treat Cushing’s syndrome. The company is continuing with dosing in the above-mentioned study at sites across the United States, Canada and Europe. The GRACE study seeks to confirm relacorilant’s positive phase II results and provide the basis for its approval in the United States and Europe as a treatment for Cushing’s syndrome.

Corcept plans to start a placebo-controlled study of relacorilant in patients whose Cushing’s syndrome is caused by an adrenal adenoma, in the fourth quarter of 2019.

A phase II study on relacorilant plus Celgene's Abraxane is ongoing for the treatment of ovarian cancer. The company also plans to start a phase III study on metastatic pancreatic cancer in late 2019 and is seeking the FDA guidance regarding the fastest path to approval for the indication.

On Jul 18, the European Medicines Agency Committee for Orphan Medicinal Products (COMP) recommended Orphan drug designation for relacorilant to treat pancreatic cancer.

The company is on track to release data from the phase Ib study on its candidatemiricorilant, formerly CORT118335, for the reduction of weight -gain caused by antipsychotic in late 2019. About 60 healthy subjects will receive Eli Lily’s Zyprexa and either miricorilant or placebo for two weeks, the primary endpoint being reduction in weight. The company expects to complete the study and start a double-blind, placebo-controlled phase II study in patients later in 2019 and another in 2020.

Corcept is also advancing miricorilant as a treatment for NASH and plans to start a double-blind, placebo-controlled phase II study in 2020 for the same.

2019 Guidance

Corcept reiterated its last reported quarter’s revenue guidance of $285-$315 million.

How Have Estimates Been Moving Since Then?

Fresh estimates followed an upward path over the past two months. The consensus estimate has shifted 13.89% due to these changes.

VGM Scores

Currently, Corcept has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Corcept has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.



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