Corcept (CORT) Beats on Q3 Earnings, Raises '23 Sales View
Corcept Therapeutics Incorporated CORT reported third-quarter 2023 earnings of 28 cents per share, which beat the Zacks Consensus Estimate of 22 cents. The company had reported earnings of 30 cents in the year-ago quarter.
Revenues increased 22% year over year to $123.6 million. The figure beat the Zacks Consensus Estimate of $118 million. The top line solely comprises product sales of Cushing’s syndrome drug, Korlym.
Quarter in Detail
Korlym revenues beat our model estimate of $117.2 million.
Research and development expenses totaled $45.5 million, up almost 36.6% from the year-ago quarter’s level.
Selling, general and administrative expenses increased around 28.7% year over year to $45.3 million.
Operating expenses were $92.4 million, up almost 32.4% from the prior year quarter. This rise can be attributed to increased spending on clinical studies and sales and marketing activities to support the expansion of clinical developments.
Corcept’s shares have rallied 38.3% in the year-to-date period against the industry decline of 18.2%.
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Cash and investments as of Sep 30, 2023, totaled $414.8 million compared with $363.3 million as of Jun 30, 2023.
2023 Guidance Updated
The company raised its revenue guidance for 2023, anticipating growth for Korlym.
Corcept now expects total revenues in the range of $470-$480 million compared with the earlier guidance of $455-$470 million. The Zacks Consensus Estimate for revenues is pegged at $465.20 million.
Pipeline Updates
Corcept’s lead pipeline candidate, relacorilant, is being evaluated in phase III of the GRACE study to treat Cushing’s syndrome. The study completed patient enrollment. A new drug application is expected to be submitted in the second quarter of 2024.
The phase III GRADIENT study evaluating relacorilant for patients whose Cushing’s syndrome is caused by adrenal adenoma is currently enrolling patients. The study continues to enroll patients, with results from the same expected in mid-2024.
Enrollment continues in the phase Ib study evaluating relacorilant in combination with Merck’s MRK blockbuster PD-1 checkpoint inhibitor, Keytruda (pembrolizumab), for treating patients with adrenal cancer along with cortisol excess. Data from the study is expected early next year.
Merck’s biggest revenue generator, Keytruda, is approved for treating several cancer indications. MRK continues to study Keytruda to address additional cancer indications.
Corcept is also evaluating relacorilant in combination studies for treating solid tumors. The pivotal phase III ROSELLA study evaluates relacorilant in combination with nab-paclitaxel for treating patients with recurrent platinum-resistant ovarian cancer. Enrollment in this study is ongoing and CORT plans to complete the same by the end of 2024.
This apart, the company is also enrolling patients in the phase II DAZALS study of its selective cortisol modulator dazucorilant for treating patients with amyotrophic lateral sclerosis. Data from this study is expected by 2024-end.
Last month, Corcept initiated a placebo-controlled phase IIb MONARCH study evaluating its other pipeline candidate, miricorilant, in patients with biopsy-confirmed NASH. The company initiated the MONARCH study after data from a phase Ib study showed that treatment with miricorilant reduced liver fat, and improved liver health and key metabolic and lipid measures.
Corcept Therapeutics Incorporated Price, Consensus and EPS Surprise
Corcept Therapeutics Incorporated price-consensus-eps-surprise-chart | Corcept Therapeutics Incorporated Quote
Zacks Rank & Other Stocks to Consider
Corcept currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the healthcare sector are Dynavax Technologies Corporation DVAX and MEI Pharma, Inc. MEIP, sporting a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Dynavax Technologies’ 2023 loss per share have narrowed from 24 cents to 22 cents. During the same period, earnings per share estimates for 2024 have improved from 2 cents to 8 cents. Year to date, shares of DVAX have rallied 32.4%.
Earnings of Dynavax Technologies beat estimates in two of the last four quarters while missing the same on the remaining two occasions. DVAX delivered a four-quarter average earnings surprise of 25.78%.
In the past 60 days, estimates for MEI Pharma’s 2023 loss per share have improved from $6.54 to $4.89. During the same period, loss per share estimates for 2024 have narrowed from $5.14 to $4.02. Year to date, shares of MEIP have rallied 44.1%.
Earnings of MEI Pharma beat estimates in three of the trailing four quarters and met the same on the other occasion. On average, MEIP came up with a four-quarter earnings surprise of 53.58%.
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