Corcept Therapeutics price target lowered to $28 from $34 at H.C. Wainwright

H.C. Wainwright lowered the firm’s price target on Corcept Therapeutics (CORT) to $28 from $34 and keeps a Buy rating on the shares after the company announced the U. S. District Court for the District of New Jersey issued a decision that Teva (TEVA) does not infringe on the company’s two patents that address the administration of Korlym in combination with CYP3A4 inhibitors. The firm believes there are two possible scenarios: Teva could wait for the appeal process to conclude before commercializing a generic Korlym, or it could commercialize the generic at-risk prior to the resolution of the appeal. It thinks that when considering the financial risk and the resources required for a successful commercial launch, Teva potentially could wait until the conclusion of appeal process before launching the generic. However, Wainwright conservatively lowered its Korlym revenue projections to account for the potentially worst-case scenario of a successful Korlym generic in the market. It now projects Korlym revenues of $400M in 2024 compared to a prior estimate of $533.50M.