Corcept Therapeutics Stock Drops 8.83% Despite Promising Trial Results Ranking 329th in Market Activity

On April 2, 2025, Corcept Therapeutics (CORT) experienced a significant decline, with its trading volume dropping by 63.7% to 2.58 billion, ranking 329th in the day's market activity. The stock price fell by 8.83%.

Corcept Therapeutics recently announced promising results from its Phase 3 ROSELLA trial, which evaluated the efficacy of relacorilant in treating ovarian cancer. The trial successfully met its primary endpoint, demonstrating a 30% reduction in disease progression risk compared to alternative treatments. The results showed improved median progression-free survival and overall survival rates, with no new safety concerns. This achievement marks a significant step towards regulatory approval in the U.S. and Europe, potentially establishing a new standard of care for this challenging cancer type.

Corcept Therapeutics is a commercial-stage company specializing in the development of medications that target severe endocrinologic, oncologic, metabolic, and neurologic disorders by modulating cortisol effects. The company has a substantial portfolio of proprietary compounds that uniquely modulate cortisol without affecting progesterone. Corcept holds comprehensive intellectual property rights in both the United States and internationally, covering the composition and therapeutic applications of its selective cortisol modulators for a broad range of severe health conditions.

The company reported promising results from its Phase 3 ROSELLA trial, showing a 30% reduction in disease progression risk when relacorilant is combined with nab-paclitaxel for patients with platinum-resistant ovarian cancer. Median progression-free survival improved to 6.5 months compared to 5.5 months for those treated with nab-paclitaxel alone. Furthermore, the overall survival rate increased to 16 months, compared to 11.5 months in the control group. Notably, no new safety concerns emerged during the trial, which enrolled 381 participants globally.

Corcept plans to file a New Drug Application (NDA) in the third quarter, followed by a European Marketing Authorization Application (MAA). These findings suggest that this combination therapy may become a new standard of care for a challenging cancer subtype and could significantly broaden Corcept’s market presence beyond its focus on cortisol modulation.

Financial performance in the fourth quarter of 2024 showed a significant increase in revenue, rising to $181.9 million from $135.4 million in the same period of 2023. For the full year, revenue reached $675.0 million, up from $482.4 million in 2023. Despite the increase in revenue, net income for the fourth quarter slightly decreased to $30.7 million from $31.4 million in the previous year, with earnings per share dropping marginally from $0.28 to $0.26. However, the full-year net income increased to $141.2 million, and earnings per share rose to $1.23 from $0.94 in 2023. Corcept’s cash and investments also grew significantly to $603.2 million by the end of 2024 compared to $425.4 million at the end of 2023.

Analysts covering the company have responded positively to the recent news. Edward Nash of Canaccord has raised its price target for shares of Corcept to $142 while maintaining a Buy rating, citing the positive results from the Phase III ROSELLA study. The study highlights the promising potential of relacorilant in combination with nab-paclitaxel for treating platinum-resistant ovarian cancer. He also remains optimistic about the uptake of Korlym in recent years and believes that the market potential for the drug is substantial.

Similarly, Swayampakula Ramakanth of H.C. Wainwright has also upgraded the price target for Corcept to $150 while reiterating a Buy rating, noting the favorable outcomes of the ROSELLA study, along with relacorilant’s favorable safety profile and potential for a broader application beyond its current label. The potential for relacorilant to expand into other indications, such as early-stage prostate cancer, could further enhance its market reach and revenue growth.