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Corcept Therapeutics slumps on 2Q drug sales

NEW YORK (AP) -- Shares of Corcept Therapeutics Inc. fell Friday after the company reported disappointing sales of its endocrine disorder drug Korlym.

THE SPARK: Corcept said Thursday that sales of Korlym totaled $1.9 million in the second quarter. The company said it changed specialty pharmacies during the quarter, which reduced its revenue by $400,000.

The company said it lost $11.9 million, or 12 cents per share. It lost $7.6 million, or 9 cents per share, a year ago. It reported $875,000 in Korlym sales a year ago.

Analysts expected the Menlo Park, Calif., company to take a loss of 11 cents per share on $2.7 million in revenue.

THE BIG PICTURE: Korlym was approved in early 2012 as a treatment for high blood sugar in patients with Cushing's syndrome. Cushing's syndrome occurs when tumors or another factor causes a person's body to produce too much of the hormone cortisol, and high blood sugar is one of its symptoms. Korlym is Corcept's only approved drug.

The company is studying the active ingredient in Korlym, mifepristone, as a treatment for psychotic depression.

THE ANALYSIS: Janney Capital Markets analyst Kimberley Lee downgraded the shares to "Neutral" from "Buy"

"Korlym has been on the market since February 2012 without significant penetration into the Cushing's community," she wrote. Lee said she does not expect that to change in the near term because Corcept's marketing capabilities are limited and physicians have not gotten comfortable prescribing the drug.

SHARE ACTION: Corcept shares lost 19 cents, or 10.1 percent, to $1.70 on Friday. The shares have risen 18.9 percent in 2013.