Corcept Therapeutics stock target raised, buy rating on Cushing’s franchise growth
On Friday, H.C. Wainwright maintained a Buy rating on shares of Corcept Therapeutics (NASDAQ:) and significantly raised the price target from $45.00 to $80.00. The firm’s decision reflects a positive outlook on the company’s Cushing’s syndrome treatment franchise, including its flagship product, Korlym.
The analyst at H.C. Wainwright cited the sustained growth in Korlym sales over recent quarters, noting that the product has seemingly been unaffected by generic competition from Teva Pharmaceuticals. The firm’s revised financial model now anticipates Korlym’s revenue to reach nearly $531 million by 2030, a substantial increase from the previously estimated $338 million for the same period.
In addition to the strong performance of Korlym, the analyst’s optimism is further bolstered by expectations surrounding Corcept’s pipeline drug, relacorilant. The company is anticipated to file a New Drug Application (NDA) by the end of 2024, with a projected market launch in the first quarter of 2026.
Assuming the drug gains approval, H.C. Wainwright estimates the price of relacorilant to be nearly $378,000 per patient annually and forecasts risk-adjusted sales to start at $174 million in 2026, eventually growing to $691 million by 2030.
The substantial increase in the price target to $80 reflects the updated sales projections and the firm’s confidence in the future success of Corcept’s Cushing’s syndrome treatments. The analyst’s comments and the revised price target suggest a strong belief in the company’s ability to capitalize on its current and future product offerings in the Cushing’s syndrome market.
In other recent news, Corcept Therapeutics has been the subject of considerable attention due to its impressive financial performance and promising clinical developments. The company’s Q2 revenue surged by 39% to $163.8 million compared to the same period last year, and net income reached $35.5 million. Following these strong results, Corcept’s management has revised its sales forecast for 2024, now expecting $640 million to $670 million.
Analyst firms Truist Securities, Canaccord Genuity, and Piper Sandler have all maintained positive ratings on Corcept’s stock, with Truist Securities raising its price target to $76. These firms cite the robust performance of Corcept’s drug Korlym and the potential for growth in its patient base as key factors.
Further bolstering the positive outlook is the progress of Corcept’s Phase 3 program for relacorilant, its next-generation treatment. The company is on track for the New Drug Application submission for relacorilant in the fourth quarter of 2024. Moreover, upcoming trials and impending litigation with TEVA are seen as potential catalysts for the company.
Corcept is also expanding into other therapeutic areas, including oncology and metabolic disorders, with ongoing trials for various diseases. These recent developments highlight Corcept Therapeutics’ strong position and potential for future growth in the biotech sector.
InvestingPro Insights
The optimistic outlook from H.C. Wainwright aligns with several key metrics and insights from InvestingPro. Corcept Therapeutics’ market cap currently stands at $4.93 billion, reflecting investor confidence in the company’s growth potential. The company’s revenue growth of 33.04% over the last twelve months and an impressive 39.15% in the most recent quarter support the analyst’s positive view on Korlym’s sales performance.
InvestingPro Tips highlight that Corcept has been highly profitable over the last twelve months and is expected to remain profitable this year. This profitability is further emphasized by the company’s strong gross profit margin of 98.49%, indicating efficient cost management in its core operations.
The stock’s recent performance has been remarkable, with a 108.16% price return over the past six months and a 66.74% return over the last year. This aligns with the InvestingPro Tip noting that Corcept is trading near its 52-week high, currently at 97.34% of that peak.
While these metrics support the bullish stance, investors should note that the stock is trading at a high P/E ratio of 38.48, which the InvestingPro Tips flag as a high earnings multiple. This valuation suggests that market expectations for future growth are already quite high.
For readers interested in a more comprehensive analysis, InvestingPro offers 15 additional tips for Corcept Therapeutics, providing a deeper understanding of the company’s financial health and market position.
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