Commercial-stage pharmaceutical company Corcept (NASDAQ:CORT) faced a setback in a patent infringement case against Israel’s Teva Pharmaceutical (NYSE:TEVA). Following the ruling in favor of Teva, Corcept stock took a significant hit, with its shares declining by over 38% in after-hours trading on Friday.
The legal dispute originated in March 2018 when Corcept Therapeutics filed a lawsuit in the U.S. District Court against Teva, alleging infringement of patents related to the use of Korlym. Korlym is a drug developed by Corcept specifically for addressing Cushing’s syndrome. Teva sought to market and sell a generic version of the Korlym drug and obtained approval from the U.S. FDA (Food and Drug Administration) in 2020.
A U.S. district judge concluded that Corcept failed to demonstrate a direct patent infringement by Teva, and thus, the judgment was given in Teva’s favor. Against this backdrop, let’s look at the Street’s forecast for Corcept stock.
Is CORT a Good Stock?
CORT stock has risen about 61% in one year, reflecting benefits from growing Korlym sales. Swayampakula Ramakanth of H.C. Wainwright noted that company recorded $347M in Korlym sales in first nine months of 2023. Further, the continued increase in the adoption of Korlym will drive its top lime. Ramakanth is bullish about CORT stock and reiterated a Buy on November 2. Moreover, the analyst increased the price target to $34 from $32.
Including Ramakanth, most analysts are bullish about CORT’s prospects. However, the setback in the patent infringement case will allow a generic version of Korlym to hit the market, which could adversely impact its financial position and stock price.
Currently, CORT stock has a Strong Buy consensus rating, reflecting five Buy and one Hold recommendations. Further, analysts’ average price target of $37 implies 13.92% upside potential.
