Corcept Therapeutics Faces Setback in Patent Infringement Lawsuit Against Teva Pharmaceuticals
Corcept Therapeutics Incorporated (CORT) experienced a significant drop in its stock price following a court ruling on its patent infringement lawsuit against Teva Pharmaceuticals (TEVA). The ruling, which was announced on December 29, 2020, stated that Teva did not infringe on Corcept’s patents for its sole marketed drug, Korlym. This drug is used to treat Cushing Syndrome, a condition caused by elevated levels of the hormone cortisol in the body.
The court’s decision was a major blow to Corcept, as Korlym has been its main source of revenue. In the first nine months of 2023, the drug generated sales of $346.9 million. With the possibility of early generic competition, Korlym’s sales are expected to decline in 2024 and beyond.
Corcept had filed a lawsuit against Teva in an attempt to prevent the generic version of Korlym from entering the market. Teva has a history of successfully resolving patent challenges and has already received FDA approval for its generic version of the drug.
This setback, Corcept’s stock has rallied 61% in the past year, outperforming the industry’s rise of 1.8%. The company’s future may be uncertain with the potential loss of its main revenue driver.
In light of this news, analysts believe that the drop in Corcept’s stock price presents a buying opportunity. Rigel Pharmaceuticals Inc. (RIGL) and Puma Biotechnology, Inc. (PBYI) are two healthcare companies that have been identified as potential investments. Both companies have a Zacks Rank #1 (Strong Buy) and have seen improvements in their earnings estimates.
The recent court ruling in the patent infringement lawsuit between Corcept Therapeutics and Teva Pharmaceuticals has caused a significant drop in Corcept’s stock price. This decision has raised concerns about the company’s future, as Korlym is its main source of revenue.
