Corcept Therapeutics (CORT) is engaged in the discovery, development and commercialization of drugs to treat severe metabolic, psychiatric and oncological disorders by modulating the effects of cortisol. Cortisol is your body’s stress hormone. It works with parts of your brain to control your fear, mood, and motivation.
If people don’t have enough or too much cortisol, the body will be adversely affected. Too little cortisol can lead to conditions such as shock, while too much cortisol can cause a weakened immune response. CORT believes that regulating cortisol may be crucial in treating several conditions.
Its only marketed drug, Korlym, is approved for the treatment of hyperglycemia secondary to hypercortisolism in adult patients with endogenous Cushing syndrome. Korlym was actually the first drug approved by the Food and Drug Administration for patients with Cushing’s syndrome. Additionally, unlike other drugs, Korlym only modulates cortisol. It does not stop its production, as it could harm patients.
Korlym even enjoys orphan drug status in the United States and Europe for Cushing’s syndrome. According to InvestopediaâThis gives companies exclusive marketing and development rights as well as other benefits to recover the costs of research and development of drugs to treat rare diseases. “
Management has even increased the size of its sales force and targets patients with Cushing’s disease who are not yet on treatment. So far, Korlym has provided consistent income to the company.
Pandemic restrictions last year hampered the company’s ability to grow as the restrictions made it difficult for doctors to diagnose and treat patients with Cushing’s syndrome, which must be done in person. However, business activity has increased significantly since then. In addition, the best endocrinologists believe that there are more patients with hypercortisolism than previously thought.
This reason alone should ensure continued revenue growth for the company. Management is certainly excited about its outlook, especially as the company can use Korlym’s revenue to expand its portfolio of proprietary selected cortisol modulators.
In fact, CORT has other drugs in development as well, including the relacorilant, which is also under investigation for Cushing’s syndrome, the exicorilant for patients with metastatic castration-resistant prostate cancer and miricorilant for antipsychotic-induced weight gain and non-alcoholic steatohepatitis.
They are also looking for treatment for adrenal, ovarian, prostate, and ALS cancer. The successful development of these candidates will lead to even greater revenue growth for the company and ensure long-term growth. The company has an overall rating of A, resulting in a strong purchase rating in our POWR odds system.
CORT has a growth rating of B, which makes sense as revenues have grown an average of 36.4% per year over the past five years. Income grew by an average of 80.1% per year over the same period. The company also has an A value rating, which is not surprising as its price-to-sales and price-to-book ratios are well below the industry average.
The stock is even considered to be 44% undervalued based on an aggregate of analyst price targets. We also provide Momentum, Stability, Sentiment and Quality ratings for CORT, which you can find here. CORT is ranked # 3 in the biotechnology industry. For more leading actions in this industry, Click here. But let’s see how CORT stacks up against its peers.
One of the largest biotech companies in the world is Moderna (MRNA), which has become extremely well known since developing an effective vaccine against COVID-19. However, unlike CORT, MRNA has an overall rating of C and a neutral rating in our POWR rating system.
BeiGene, Ltd. (BGNE), another competitor of CORT, has an even worse rating than MRNA. It has an overall D rating and a Selling rating in our POWR rating system. In addition, its CORT value is much lower than the A value of CORT. This makes CORT the best buy. Additionally, the stock is down over 5% today, making it a great time to buy on the downside.
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CORT shares remained unchanged on Friday after trading hours. Year-to-date, CORT is down -23.39%, compared to a 20.42% increase in the benchmark S&P 500 over the same period.
About the Author: David Cohne
David Cohne has 20 years of experience as an investment analyst and writer. He is the chief value strategist for StockNews.com and the publisher of the POWR Value newsletter. Prior to StockNews, David spent eleven years as a consultant providing research and content on outsourced investing to financial services firms, hedge funds and online publications. David enjoys researching and writing about stocks and markets. It takes a fundamental quantitative approach in evaluating stocks for readers. Following…