Corcept Therapeutics Incorporated (CORT) Bundle
A Brief History of Corcept Therapeutics Incorporated
Company Overview
Corcept Therapeutics Incorporated is a commercial-stage biopharmaceutical company focused on developing and marketing medications to treat severe endocrinologic, oncologic, metabolic, and neurologic disorders by modulating the effects of the hormone cortisol. The company has marketed its primary product, Korlym®, for the treatment of Cushing’s syndrome since 2012 and has recently introduced an authorized generic version in June 2024.
Financial Performance
As of September 30, 2024, Corcept reported a net income attributable to common stockholders of $46.7 million for the third quarter, compared to $31.2 million for the same period in 2023. For the nine months ended September 30, 2024, the net income was $109.3 million, up from $74.4 million in 2023.
| Period | Net Income ($ in thousands) | Basic Earnings Per Share ($) | Diluted Earnings Per Share ($) |
|---|---|---|---|
| Q3 2024 | 46,690 | 0.45 | 0.41 |
| Q3 2023 | 31,172 | 0.31 | 0.28 |
| 9M 2024 | 109,344 | 1.06 | 0.98 |
| 9M 2023 | 74,353 | 0.72 | 0.66 |
Revenue Overview
Corcept's net product revenue for the three months ended September 30, 2024, was $182.5 million, compared to $123.6 million for the same period in 2023. For the nine months ended September 30, 2024, the net product revenue reached $493.2 million, up from $347.0 million in 2023.
| Period | Net Product Revenue ($ in thousands) |
|---|---|
| Q3 2024 | 182,546 |
| Q3 2023 | 123,601 |
| 9M 2024 | 493,150 |
| 9M 2023 | 346,970 |
Expenses
For the three months ended September 30, 2024, total operating expenses were $135.9 million, compared to $92.4 million for the same period in 2023. The increase was primarily driven by a rise in research and development costs and selling, general, and administrative expenses.
| Period | Total Operating Expenses ($ in thousands) | R&D Expenses ($ in thousands) | SG&A Expenses ($ in thousands) |
|---|---|---|---|
| Q3 2024 | 135,948 | 59,336 | 73,745 |
| Q3 2023 | 92,424 | 45,517 | 45,262 |
| 9M 2024 | 381,461 | 176,587 | 196,948 |
| 9M 2023 | 271,357 | 129,646 | 137,107 |
Liquidity Position
As of September 30, 2024, Corcept had cash, cash equivalents, and marketable securities totaling $547.6 million, consisting of $137.3 million in cash and cash equivalents and $410.4 million in marketable securities, compared to $425.4 million at the end of 2023.
Stockholder Equity
By the end of September 2024, Corcept's total stockholders' equity was reported at $638.8 million, an increase from $506.7 million at the end of 2023.
| Date | Total Stockholders' Equity ($ in thousands) |
|---|---|
| September 30, 2024 | 638,835 |
| December 31, 2023 | 506,705 |
Recent Developments
In January 2024, the Board of Directors authorized a stock repurchase program of up to $200 million. As of September 30, 2024, $184.3 million remained available for repurchase under this program.
Corcept continues to advance its research programs, with research and development expenses totaling $59.3 million for Q3 2024, reflecting a focus on enhancing its drug development initiatives.
Market Position
Corcept's strategic focus on cortisol modulation has positioned it as a leader in the treatment of Cushing’s syndrome. The introduction of an authorized generic version of Korlym® is expected to enhance its market presence and accessibility for patients.
A Who Owns Corcept Therapeutics Incorporated (CORT)
Ownership Structure
As of 2024, Corcept Therapeutics Incorporated (CORT) has a diverse ownership structure that includes institutional investors, insiders, and retail shareholders. The latest data indicates that officers, directors, and principal stockholders beneficially own approximately 21 percent of the company's common stock .
Major Shareholders
| Shareholder Type | Percentage Ownership | Number of Shares Owned |
|---|---|---|
| Institutional Investors | Approximately 79% | ~82.2 million shares |
| Insiders | ~21% | ~21.7 million shares |
| Retail Investors | ~Less than 5% | ~5.2 million shares |
Top Institutional Investors
The following are some of the top institutional investors in Corcept Therapeutics as of 2024:
| Institution | Percentage Ownership | Number of Shares Owned |
|---|---|---|
| BlackRock, Inc. | ~10.5% | ~10.9 million shares |
| The Vanguard Group, Inc. | ~9.8% | ~10.1 million shares |
| FMR LLC (Fidelity) | ~7.2% | ~7.4 million shares |
| State Street Corporation | ~6.5% | ~6.7 million shares |
| Invesco Ltd. | ~5.3% | ~5.5 million shares |
Insider Ownership
Insider ownership plays a crucial role in the governance of Corcept Therapeutics. The following data highlights key insiders and their ownership stakes:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Joseph K. Belanoff | CEO | ~1.5 million | ~1.5% |
| Atabak Mokari | CFO | ~950,000 | ~0.9% |
| Daniel Swisher | Director | ~600,000 | ~0.6% |
Stock Performance and Trends
Corcept Therapeutics has experienced fluctuations in stock performance, with a 52-week trading range between $20.84 and $50.07 . The average daily trading volume has been approximately 1,105,185 shares .
Corcept Therapeutics Incorporated (CORT) Mission Statement
Corcept Therapeutics Incorporated is dedicated to improving the lives of patients with severe endocrine, oncologic, metabolic, and neurologic disorders by modulating the effects of cortisol. The company focuses on the discovery and development of innovative medications that target these critical health issues, with a commitment to advancing scientific knowledge and enhancing patient care.
Financial Overview
As of September 30, 2024, Corcept Therapeutics reported significant financial metrics:
| Item | Q3 2024 (in thousands) | Q3 2023 (in thousands) | YTD 2024 (in thousands) | YTD 2023 (in thousands) |
|---|---|---|---|---|
| Net Product Revenue | $182,546 | $123,601 | $493,150 | $346,970 |
| Cost of Sales | $2,867 | $1,645 | $7,926 | $4,604 |
| Research and Development Expense | $59,336 | $45,517 | $176,587 | $129,646 |
| Selling, General and Administrative Expense | $73,745 | $45,262 | $196,948 | $137,107 |
| Net Income | $47,213 | $31,378 | $110,463 | $74,785 |
| Basic Net Income per Share | $0.45 | $0.31 | $1.06 | $0.72 |
Stock Performance and Shareholder Value
Corcept Therapeutics has implemented a Stock Repurchase Program, authorizing up to $200 million in repurchases. As of September 30, 2024, the company repurchased 0.5 million shares at an average price of $32.25 per share, totaling approximately $15.7 million. The remaining authorization for repurchases is approximately $184.3 million.
Liquidity Position
As of September 30, 2024, Corcept had cash, cash equivalents, and marketable securities totaling $547.6 million, comprised of:
- Cash and cash equivalents: $137.3 million
- Marketable securities: $410.4 million
This represents an increase from $425.4 million as of December 31, 2023, reflecting strong operational performance and cash flow management.
Research and Development Focus
Corcept's research and development expenses have increased due to advancements in clinical programs and employee compensation. Notable R&D expenditures for Q3 2024 include:
| Program | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Oncology | $13,007 | $11,493 |
| Cushing’s Syndrome | $14,273 | $8,980 |
| Metabolic Diseases | $10,406 | $8,122 |
| Pre-clinical and Early-stage Selective Cortisol Modulators | $9,583 | $7,871 |
Corcept is committed to advancing its pipeline of selective cortisol modulators, which are designed to address severe health conditions.
Conclusion on Mission Statement Alignment
Corcept Therapeutics' mission is well-aligned with its strategic focus on developing innovative therapies and maintaining a robust financial position. The company's commitment to research and development, along with prudent financial management, positions it to effectively address the needs of patients suffering from critical health issues.
How Corcept Therapeutics Incorporated (CORT) Works
Business Model
Corcept Therapeutics Incorporated is a commercial-stage biopharmaceutical company that focuses on the discovery, development, and commercialization of medications that treat severe endocrine, oncological, metabolic, and neurological disorders by modulating cortisol levels. The company's flagship product, Korlym® (mifepristone), is approved for the treatment of Cushing’s syndrome.
In June 2024, Corcept launched an authorized generic version of Korlym, expanding its market reach. The company’s proprietary selective cortisol modulators consist of over 1,000 compounds, with ongoing clinical trials aimed at developing new treatments.
Financial Overview
As of September 30, 2024, Corcept reported a net income of $47.2 million for the third quarter, compared to $31.4 million in the same period of 2023. For the nine months ending September 30, 2024, the net income stood at $110.5 million, up from $74.8 million year-over-year. The earnings per share for the third quarter were $0.45 (basic) and $0.41 (diluted).
Revenue and Expenses
Corcept's net product revenue for the three and nine months ended September 30, 2024, was $182.5 million and $493.2 million, respectively, compared to $123.6 million and $347.0 million for the same periods in 2023. The increase in revenue was primarily attributed to higher sales volumes and a price increase effective January 1, 2024.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income | $47.2 million | $31.4 million | $110.5 million | $74.8 million |
| Net Product Revenue | $182.5 million | $123.6 million | $493.2 million | $347.0 million |
| Basic EPS | $0.45 | $0.31 | $1.06 | $0.72 |
| Diluted EPS | $0.41 | $0.28 | $0.98 | $0.66 |
Research and Development (R&D)
Corcept's R&D expenses for the three and nine months ended September 30, 2024, were $59.3 million and $176.6 million, respectively, compared to $45.5 million and $129.6 million in the prior year. This increase reflects heightened investment in clinical development and employee compensation.
| R&D Expense Breakdown | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Oncology | $13.0 million | $11.5 million | $42.2 million | $27.9 million |
| Cushing’s Syndrome | $14.3 million | $9.0 million | $39.9 million | $27.7 million |
| Metabolic Diseases | $10.4 million | $8.1 million | $29.9 million | $24.6 million |
| Pre-clinical and Early-stage | $9.6 million | $7.9 million | $30.0 million | $23.6 million |
| Unallocated Activities | $7.4 million | $5.0 million | $21.5 million | $14.6 million |
Operating Expenses
The selling, general, and administrative (SG&A) expenses for the three and nine months ended September 30, 2024, were $73.7 million and $196.9 million, respectively, compared to $45.3 million and $137.1 million in the prior year.
| SG&A Expense | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| SG&A Expenses | $73.7 million | $45.3 million | $196.9 million | $137.1 million |
Cash Flow and Liquidity
As of September 30, 2024, Corcept had cash, cash equivalents, and marketable securities totaling $547.6 million, consisting of cash and cash equivalents of $137.3 million and marketable securities of $410.4 million.
Net cash provided by operating activities was $138.8 million for the nine months ended September 30, 2024, compared to $121.2 million for the same period in 2023.
Stock Repurchase Program
In January 2024, Corcept's Board of Directors authorized a stock repurchase program of up to $200 million. As of September 30, 2024, the company repurchased shares at an average price of $32.25 per share, with $184.3 million remaining for future repurchases.
| Stock Repurchase Details | Total Shares Purchased | Average Price Per Share | Total Purchase Price |
|---|---|---|---|
| Q3 2024 | 0.5 million | $32.25 | $15.7 million |
How Corcept Therapeutics Incorporated (CORT) Makes Money
Revenue Streams
Corcept Therapeutics primarily generates revenue through the sale of its drug, Korlym (mifepristone), which is used to treat Cushing’s syndrome. In addition to Korlym, an authorized generic version was introduced in June 2024, further contributing to revenue.
| Period | Net Product Revenue (in thousands) | Growth Rate |
|---|---|---|
| Q3 2024 | $182,546 | 47.6% |
| Q3 2023 | $123,601 | - |
| 9M 2024 | $493,150 | 42.3% |
| 9M 2023 | $346,970 | - |
Cost of Sales
The cost of sales, which includes the costs associated with manufacturing, shipping, and distribution, was relatively low compared to revenue. For Q3 2024, the cost of sales was $2,867,000, representing 1.6% of revenue. This indicates strong gross margins on product sales.
| Period | Cost of Sales (in thousands) | Percentage of Revenue |
|---|---|---|
| Q3 2024 | $2,867 | 1.6% |
| Q3 2023 | $1,645 | 1.3% |
Research and Development Expenses
Research and development (R&D) expenses are significant as Corcept continues to develop new treatments. For Q3 2024, R&D expenses totaled $59,336,000 compared to $45,517,000 in Q3 2023. This increase reflects ongoing clinical trials and development programs.
| Period | R&D Expenses (in thousands) |
|---|---|
| Q3 2024 | $59,336 |
| Q3 2023 | $45,517 |
Selling, General, and Administrative Expenses
The selling, general, and administrative (SG&A) expenses also increased, reflecting the growth in commercial activities. For Q3 2024, SG&A expenses were $73,745,000 compared to $45,262,000 in Q3 2023.
| Period | SG&A Expenses (in thousands) |
|---|---|
| Q3 2024 | $73,745 |
| Q3 2023 | $45,262 |
Net Income
Net income attributable to common stockholders for Q3 2024 was $46,690,000, significantly higher than $31,172,000 for Q3 2023. This increase reflects the growth in revenue and controlled expenses.
| Period | Net Income (in thousands) |
|---|---|
| Q3 2024 | $46,690 |
| Q3 2023 | $31,172 |
Liquidity and Capital Resources
As of September 30, 2024, Corcept had cash, cash equivalents, and marketable securities amounting to $547,600,000, an increase from $425,400,000 at the end of 2023.
| Category | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $137,300 |
| Marketable Securities | $410,400 |
Future Outlook
Corcept anticipates continued growth from Korlym, especially with the introduction of the authorized generic. However, regulatory changes under the Inflation Reduction Act could impact future revenues from Medicare patients starting in 2025.
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Article updated on 8 Nov 2024
Resources:
- Corcept Therapeutics Incorporated (CORT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Corcept Therapeutics Incorporated (CORT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Corcept Therapeutics Incorporated (CORT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.