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Corcept (CORT) Q3 Earnings Miss Estimates, Guidance Raised

Corcept Therapeutics Inc.’s CORT adjusted third-quarter 2017 earnings (including stock-based compensation expenses) of 11 cents per share missed the Zacks Consensus Estimate of 13 cents. However, the reported figure improved from the year-ago adjusted earnings of 2 cents.

Revenues increased 96.8% from the year-ago quarter figure to $42.8 million and also surpassed the Zacks Consensus Estimate of $41 million.

So far this year, Corcept’s share price has increased 149.9% year to date, as against the industry’s decline of 0.1%.

 

Research and development expenses improved 65% to $11.7 million. Likewise, selling, general and administrative expenses were up 50.7% to $16.5 million. In fact, the increase in operating expenses was primarily owing to greater compensation expense, pharmacy costs related to higher revenue and increased spending on the development of relacorilant (the newly-approved generic name for CORT125134), CORT118335 and CORT125281.

Pipeline Update

Corcept expects results from phase II study of relacorilant by end of first quarter 2018. Meanwhile, the company is planning underway for end-of-phase II FDA meeting and the commencement of phase III study in the third quarter of 2018.

By end of 2017, Corcept plans to begin a dose-ranging study of CORT125281 combined with Xtandi to treat patients with castration-resistant prostate cancer and to begin testing the combination of relacorilant and Celgene’s CELG Abraxane in patients with pancreatic cancer. 

Guidance

Corcept raised its 2017 revenue guidance. The company now projects revenues to be in the range of $157 million to 162 million, up from its prior expectation of $145 million to $155 million. The Zacks Consenus Estimate for 2017 is $151.2 million.

Zacks Rank & Stocks to Consider

Corcept carries a Zacks Rank #3 (Hold).Some better-ranked health care stocks in the same space include Ligand Pharmaceuticals Inc. LGND and Agenus Inc. AGEN. While Ligand sports a Zacks Rank #1 (Strong Buy), Agenus holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Ligand’s earnings per share estimates have moved up $3.68 to $3.70 for 2018 over the last 30 days. The company pulled off positive earnings surprises in two of the trailing four quarters, with an average beat of 6.19%. The share price of the company has increased 42.8% year to date.

Agenus’ loss per share estimates have narrowed from $1.40 to $1.36 for 2018 over the last 30 days. The company delivered positive earnings surprises in three of the trailing four quarters, with an average beat of 4.27%.

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Celgene Corporation (CELG): Free Stock Analysis Report
 
Ligand Pharmaceuticals Incorporated (LGND): Free Stock Analysis Report
 
Agenus Inc. (AGEN): Free Stock Analysis Report
 
Corcept Therapeutics Incorporated (CORT): Free Stock Analysis Report
 
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