Corcept's ALS Drug Fails Primary Endpoint in Phase 2 Study; Company Swings to Q1 Loss
CORT sits 64% above its 52-week low of $28.66.
Summary
Corcept Therapeutics announced that its Phase 2 study of dazucorilant for ALS failed to meet its primary endpoint, which assessed a difference in function. This is a significant negative development for the company's pipeline, as primary endpoint failures in late-stage trials often lead to discontinuation. However, the company noted a positive outcome in a secondary endpoint, with an 87% reduction in the risk of death for patients on a higher dose, and plans to pursue a pivotal Phase 3 study. This news comes as the company also reported a first-quarter loss of $31.8 million, or 30 cents per share, missing analyst estimates, though it did raise its full-year revenue outlook. While the Q1 financial results were largely anticipated from earlier reports, the mixed drug trial data introduces new uncertainty and risk for a key pipeline asset. Investors will now watch for regulatory feedback and the initiation of the planned Phase 3 study.
At the time of this announcement, CORT was trading at $47.00 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $5B. The 52-week trading range was $28.66 to $91.00. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.