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Corcept (CORT) Beats on Q2 Earnings, Ups '23 Sales View

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Corcept Therapeutics Incorporated (CORT - Free Report) reported second-quarter 2023 earnings of 25 cents per share, which beat the Zacks Consensus Estimate of 15 cents. The bottom line also increased 4.2% on a year-over-year basis.

Revenues increased almost 14% year over year to $117.7 million. The figure beat the Zacks Consensus Estimate of $110 million. The top line mostly comprises of product sales of the Cushing’s syndrome drug, Korlym.

Quarter in Detail

Korlym revenues beat our model estimate of $109.5 million.

Research and development expenses totaled $43.3 million, up 31.8% from the year-ago quarter’s level.

Selling, general and administrative expenses increased 14.5% to $43.3 million, year over year.

Operating expenses amounted to $88.1 million, up 22.5% from that recorded in the prior-year quarter. This rise can be attributed to increased spending on clinical trials and sales and marketing activities to support the expansion of clinical developments. 

The company’s shares were up almost 3.2% on Wednesday, after trading hours, in response to the raised guidance reflecting strong revenue performance.  The stock has gained 23.1% in the year-to-date period against no change for the industry.

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Cash and investments as of Jun 30, 2023, totaled $363.3 million compared with $465.1 million as of Mar 31, 2023.

In April 2023, Corcept purchased 6.6 million shares of its common stock for $145.4 million.

Updated 2023 Guidance

The company raised its revenue guidance for 2023, reflecting growth for Korlym. 

Corcept now expects total revenues in the range of $455-$470 million compared with the earlier guidance of $435-$455 million. The Zacks Consensus Estimate for the same is pegged at $443.17 million.

Pipeline Updates

Corcept’s lead pipeline candidate, relacorilant, is being evaluated in phase III of the GRACE study to treat Cushing’s syndrome. The study completed patient enrollment. A new drug application is also likely to be submitted in the second quarter of 2024.

Another phase III GRADIENT study evaluating relacorilant for patients whose Cushing’s syndrome is caused by adrenal adenoma is currently enrolling patients. The study is in the process of completing enrollment.

Enrollment continues the phase Ib study, evaluating relacorilant in combination with Merck’s (MRK - Free Report) blockbuster PD-1 checkpoint inhibitor, Keytruda (pembrolizumab), for treating patients with adrenal cancer along with cortisol excess.

Merck’s biggest revenue generator, Keytruda, is approved for treating several cancer indications. MRK continues to study Keytruda to address additional cancer indications.

Corcept is evaluating relacorilant in combination studies for treating solid tumors. The pivotal phase III ROSELLA study evaluates relacorilant, in combination with nab-paclitaxel, for treating patients with platinum-resistant ovarian cancer. Enrollment in this study is ongoing and CORT plans to complete the same by the end of the year.

The company is also enrolling patients in the phase II DAZALS study of its selective cortisol modulator dazucorilant in patients with amyotrophic lateral sclerosis. It has recently added clinical trial sites in the United States and is on track to complete enrollment by early 2024.

Zacks Rank & Stocks to Consider

Currently, Corcept has a Zacks Rank #3 (Hold).

A couple of better-ranked stocks in the same industry are ADC Therapeutics (ADCT - Free Report) and ImmunoGen , both carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 90 days, the Zacks Consensus Estimate for ADC Therapeutics has widened from a loss of $2.60 per share to a loss of $2.61 for 2023. The consensus estimate has narrowed from a loss of $2.75 per share to a loss of $2.55 for 2024 during the same time frame. Shares of the company have lost 61.2% year to date.

ADCT’s earnings beat estimates in three of the trailing four quarters and missed the mark in one, delivering an average surprise of 10.70%.  

In the past 90 days, the Zacks Consensus Estimate for ImmunoGen has narrowed from a loss of 56 cents per share to a loss of 50 cents for 2023. The consensus estimate has narrowed from a loss of 23 cents per share to a loss of 21 cents for 2024 during the same time frame. Shares of the company have rallied 246.2% year to date.

IMGN’s earnings beat estimates in three of the trailing four quarters and missed the mark in one, delivering an average surprise of 31.24%.


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