Corcept Therapeutics Plummets 10.8% as FDA Deadline Looms—What’s Next for Biotech’s High-Stakes Bet?

Summary
• Corcept Therapeutics (CORT) tumbles 10.8% intraday to $71.17 amid FDA decision on relacorilant
• Executives including CEO Joseph Belanoff and CBO Gary Robb exercise stock options, triggering $41.5M and $10.9M in transactions
• Biotech sector declines 1.4% as SPDR S&P Biotech ETF (XLB) and iShares Nasdaq Biotechnology ETF (IBB) lag behind CORT’s selloff

Corcept Therapeutics faces a historic day as the FDA’s PDUFA decision deadline for relacorilant looms. The stock’s 10.8% intraday drop—its lowest since $70.81—reflects investor anxiety over regulatory outcomes and insider selling. With the biotech sector broadly weaker, CORT’s sharp move underscores event-driven volatility in a sector where regulatory approvals often dictate market direction.

FDA Deadline and Insider Selling Trigger Sharp Selloff
Corcept’s 10.8% intraday plunge is directly tied to two catalysts: the FDA’s imminent decision on relacorilant for Cushing’s syndrome and a wave of insider stock option exercises. The PDUFA date of December 30, 2025, has traders bracing for a potential approval or complete response letter (CRL). Meanwhile, CEO Joseph Belanoff exercised 550,000 shares, and CBO Gary Robb converted 145,000 options, signaling liquidity needs or bearish sentiment. These moves, combined with the sector’s regulatory risk profile, have amplified short-term selling pressure.

Biotech Sector Falters as CORT’s Drop Outpaces Peers
The biotech sector, as measured by the SPDR S&P Biotech ETF (XLB), fell 1.4% on the day, while the iShares Nasdaq Biotechnology ETF (IBB) declined 1.2%. CORT’s 10.8% drop far exceeded sector averages, highlighting its event-driven exposure to the FDA decision. Unlike peers focused on broader market trends, CORT’s volatility is concentrated on regulatory outcomes and insider activity, making it a high-beta play within the sector.

Bearish Options and Technical Levels to Watch in CORT’s High-Volatility Environment
• MACD: 0.82 (bearish divergence from signal line 1.46)
• RSI: 43.89 (oversold territory, but bearish momentum persists)
• Bollinger Bands: Price at $71.17, below the 78.70 lower band
• 200-day MA: 73.97 (price below key support)
• Support/Resistance: 71.32–72.51 (200-day range critical for near-term direction)

CORT’s technicals paint a bearish picture, with RSI in oversold territory and price below all major moving averages. The 200-day range (71.32–72.51) is a critical battleground; a break below 71.32 could trigger a test of the 52-week low at $49.00. The options chain offers two high-conviction bearish plays:

CORT20260116P65
• Put Option: Strike $65, Expiry 2026-01-16
• IV: 170.97% (high volatility)
• Leverage Ratio: 9.19% (moderate)
• Delta: -0.3388 (moderate sensitivity)
• Theta: -0.2007 (time decay manageable)
• Gamma: 0.0136 (moderate sensitivity to price moves)
• Turnover: $368,498 (liquid)
• Payoff at 5% Downside: $6.17 (max profit if price drops to $65)
This put offers a balance of leverage and liquidity, ideal for a 5–7% downside scenario. The high IV and moderate delta position it to benefit from continued selling pressure.

CORT20260116P70
• Put Option: Strike $70, Expiry 2026-01-16
• IV: 157.02% (elevated)
• Leverage Ratio: 7.58% (moderate)
• Delta: -0.4177 (strong sensitivity)
• Theta: -0.1784 (time decay manageable)
• Gamma: 0.0158 (high sensitivity to price moves)
• Turnover: $373,527 (liquid)
• Payoff at 5% Downside: $1.17 (max profit if price drops to $70)
This put is more aggressive, with a higher delta and gamma, making it responsive to sharp price declines. Its proximity to the current price (71.17) increases its probability of profit if the FDA issues a CRL.

Trading Outlook: Aggressive bears should prioritize CORT20260116P65 for a 5–7% downside bet, while CORT20260116P70 offers a closer-to-current-price play. Watch for a breakdown below 71.32 to confirm bearish momentum.

Backtest Corcept Therapeutics Stock Performance
The performance of CORT after a -11% intraday plunge from 2022 to now has shown positive short-to-medium-term gains. The backtest data indicates that the 3-Day win rate is 59.35%, the 10-Day win rate is 59.57%, and the 30-Day win rate is 66.74%, suggesting that the stock tends to recover and even exceed its previous levels in the following days.

FDA Decision and Insider Sentiment: A Make-or-Break Moment for CORT
Corcept Therapeutics’ 10.8% intraday drop reflects a perfect storm of regulatory uncertainty and insider selling. With the FDA’s PDUFA date at 13:14 ET and insider transactions totaling $52.4M, the stock’s near-term trajectory hinges on the relacorilant decision. Technically, the 71.32–72.51 support/resistance range is critical; a break below 71.32 could trigger a cascade to the 52-week low. Meanwhile, the sector leader Amgen (AMGN) fell 0.42%, underscoring broader biotech fragility. Traders should monitor the FDA’s verdict and key support levels—act decisively if the 71.32 threshold breaks.