Corcept Therapeutics Inc (CORT)

Corcept Therapeutics Inc (CORT) stock dropped by 25.62% due to a patent infringement lawsuit outcome against Teva Pharmaceuticals (TEVA), negatively impacting Corcept's shares.

• Lawsuit Outcome and Generic Competition: The United States district court ruled against Corcept Therapeutics in its lawsuit related to its drug Korlym, which treats Cushing's syndrome. Teva Pharmaceuticals prevailed in the lawsuit as Corcept failed to demonstrate the likelihood of patent infringement.
• Impact on Korlym Sales and Stock Price: Korlym has been Corcept's primary revenue source, contributing $346.9 million in sales during the first nine months of 2023. The court's decision is expected to allow generic competition, potentially reducing Korlym's sales in 2024 and beyond.
• Stock Price Reaction: The negative outcome of the lawsuit had an immediate impact on Corcept's stock price, leading to a significant decline. While the stock had previously experienced a 61% rally over the past year, concerns about future sales and competition for Korlym contributed to the stock's drop.