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Canaccord Genuity said Tuesday that it regards the sell-off in Corcept Therapeutics (NASDAQ:CORT) shares as a buying opportunity, given that the company intends to appeal a recent court decision on its drug Korlym and upcoming Phase 3 data for its drug candidate relacorilant.
The investment firm said it was disappointed by Friday’s court decision that Teva (TEVA) had not infringed on Corcept’s patents for Korlym, also known as mifepristone, with its generic product. Canaccord added, however, that it didn’t see the decision as a final outcome.
“We view this as an ideal buying opportunity given the strength we have seen in Korlym top-line revenue over the past few quarters and what we expect to be a positive outcome from the Phase 3 GRACE trial.”
Canaccord noted that the appeals process could take 12-18 months, “would land us at right about the time relacorilant could launch, if clinically successful.” It added that it believed it was “highly unlikely” that Teva would launch a generic product at risk.
If Teva does prevail in bringing a generic version of the product to market, Corcept could also compete on price until relacorilant is approved, Canaccord added.
Canaccord’s price target for Corcept is $38.
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Image and article originally from seekingalpha.com. Read the original article here.