Truist Securities has shown confidence in Corcept Therapeutics Incorporated (CORT) by increasing its price target. The firm points to the ongoing momentum in sales of Korlym, Corcept’s flagship drug for Cushing’s syndrome, even amidst rising competition. Truist analysts describe this sustained success as “impressive and difficult to ignore.”
Korlym (mifepristone) is a prescription medication used to manage high blood sugar levels associated with hypercortisolism in adults with Cushing’s syndrome. While surgical intervention is often the preferred approach, approximately 10,000 patients in the U.S. require medical management due to their condition. This presents a significant growth opportunity for Corcept, considering that currently only around 2,000 patients are treated with Korlym.
Corcept faces competition, most recently from Teva Pharmaceuticals Inc. (TEVA) who filed a lawsuit accusing Corcept of engaging in anti-competitive practices. However, Corcept continues to advance its pipeline. In May, the company announced positive results from the GRACE Phase 3 trial of relacorilant, a promising new drug for treating Cushing’s syndrome. This success, coupled with data from the ongoing GRADIENT trial, will be included in the FDA application for approval. Truist analysts express confidence in the success of the GRADIENT trial, stating it is “well-powered.”
Truist projects that Corcept could achieve a remarkable $3 billion in total revenue within the next five years. The firm highlights that management expects almost all existing Korlym patients to switch to relacorilant once it receives approval. With anticipated growth in the market penetration of relacorilant for Cushing’s from 16% to 25% by 2033, Truist has raised its price target from $65 to $76, while maintaining a Buy rating.
This optimistic outlook is reflected in CORT stock performance, which rose 5.19% to $46.21 on Monday. The potential for relacorilant to become a significant driver of growth for Corcept and the continued success of Korlym have fueled investor confidence in the company’s future.
