Corcept's Q3 2025 Earnings Call: Contradictions on Korlym Patients, Authorized Generic Mix, and Pharmacy Capacity

Business Commentary:

* Revenue and Growth: - Corcept Therapeutics reported revenue of $207.6 million for Q3 2025, compared to $182.5 million in the prior year. - The revenue growth was driven by robust demand in the hypercortisolism business and the transition to an authorized generic, which increased market share.

• Endocrinology and Oncology Advancements:
• The hypercortisolism business experienced a 42.5% increase in tablet shipments to patients compared to the third quarter of the previous year.

• This growth is attributed to increased physician awareness of hypercortisolism, driven by studies like the CATALYST trial, and the expanding base of prescribers.

• Patent Litigation and Market Position:

• Corcept's appeal against Teva Pharmaceuticals' generic version of Korlym is ongoing, with a decision from the Federal Circuit Court of Appeals anticipated at any time.

• A favorable decision could prevent Teva from marketing its product until the expiration of Corcept's patents in 2037, which would maintain market exclusivity.

• Clinical and Oncology Development:

• Corcept's oncology program is expanding, with plans to begin new studies in pancreatic, cervical, and endometrial cancers, demonstrating the broad potential of cortisol receptor antagonism.
• The company is advancing a pipeline of proprietary selective cortisol modulators to explore their potential in other therapeutic areas, including treating MASH and ALS.

Contradiction Point 1

Number of Paying Patients on Korlym

The number of paying patients on Korlym is a key metric for assessing the company's sales performance and growth potential.

How many patients were on Korlym at quarter-end? How does the new distributor's capacity compare to the previous one? - Edward Nash(Canaccord Genuity)

20251105-2025 Q3: At the end of the third quarter, we had around 3,250 paying patients. - Sean Maduck(President, Endocrinology Division)

What was the patient count for Korlym at quarter-end? How does the new distributor’s capacity compare to the previous one? - Edward Nash(Canaccord Genuity)

2025Q3: We ended the third quarter with approximately 3,250 paying patients. - Sean Maduck(President of Endocrinology)

Contradiction Point 2

Percentage of Business from Authorized Generic

The percentage of business from the authorized generic impacts the company's revenue and profitability, particularly in relation to pricing dynamics.

What is the net pricing relative to brand pricing, and what percentage of business comes from AG? Were you surprised by the lack of a priority review for the ovarian cancer NDA? - David Amsellem(Piper Sandler)

20251105-2025 Q3: About 2/3 to 75% of business is on AG with a 30% discount to Korlym's list price. - Sean Maduck(President, Endocrinology Division)

What is the net pricing of the authorized generic relative to brand pricing? What percentage of your business comes from the AG? - David Amsellem(Piper Sandler)

2025Q3: Approximately 75% of Corcept's business is expected to be through the authorized generic by year-end. - Sean Maduck(President of Endocrinology)

Contradiction Point 3

Pharmacy Distribution and Capacity

This contradiction involves the company's ability to handle increased demand and the capacity of its pharmacy distribution, which is crucial for revenue and patient care.

What was the patient count for Korlym at quarter-end? What is the new distributor's capacity relative to the previous one? - Edward Nash(Canaccord Genuity)

20251105-2025 Q3: At the end of the third quarter, we had around 3,250 paying patients. The new pharmacy has the ability to continually expand with our business and has multiple locations, enhancing capacity to handle increased demand. - Sean Maduck(President, Endocrinology Division)

How did the authorized generic's contribution to Corcept's business compare to Q1 this quarter? What percentage of year-over-year pricing headwinds did you experience? Can you explain the gap between prescriptions written and filled? - David A. Amsellem(Piper Sandler)

2025Q2: The pharmacy vendor has not kept up with demand, causing delays and a $15 million impact on Q2 results. Improvements are expected in the second half, but a second pharmacy will be added for better support. - Sean Maduck(President, Endocrinology Division)

Contradiction Point 4

Pharmacy Operations and Capacity

It directly impacts the company's ability to handle increased demand and maintain supply chain efficiency, which can affect revenue and operational effectiveness.

What was the patient count for Korlym at quarter-end? How does the new distributor's capacity compare to the previous one? - Edward Nash(Canaccord Genuity)

20251105-2025 Q3: At the end of the third quarter, we had around 3,250 paying patients. The new pharmacy has the ability to continually expand with our business and has multiple locations, enhancing capacity to handle increased demand. - Sean Maduck(President, Endocrinology)

How did pharmacy operations impact revenue in recent quarters and what are your expectations for the second half of the year? - Edward Nash(Canaccord)

2025Q1: Prior to March, pharmacy operations, specifically limited capacity, negatively impacted revenues. March and April saw these improvements. The pharmacy recently completed an expansion. - Sean Maduck(President, Endocrinology)

Contradiction Point 5

Pricing of Authorized Generic vs Korlym

It involves changes in the pricing strategy and mix between Korlym and its authorized generic, which are critical for revenue forecasting and market positioning.

What is the net pricing vs. brand pricing, and what percentage of business comes from AG? Were you surprised by not receiving a priority review for the ovarian cancer NDA? - David Amsellem(Piper Sandler)

20251105-2025 Q3: About 2/3 to 75% of business is on AG with a 30% discount to Korlym's list price. - Sean Maduck(President, Endocrinology Division)

What is the mix of Korlym and its authorized generic, and how does it impact revenue? - David Amsellem(Piper Sandler)

2025Q1: The authorized generic is priced at a 12% discount from Korlym, though payers negotiate further, impacting net prices. - Sean Maduck(President, Endocrinology)