Corcept Therapeutics Incorporated (CORT): Business Model Canvas [10-2024 Updated]

Corcept Therapeutics Incorporated (CORT) is at the forefront of innovative treatments for Cushing's syndrome, leveraging a unique business model that combines cutting-edge research with strategic partnerships. By focusing on cortisol modulation, Corcept not only develops effective therapies like Korlym but also fosters strong relationships with healthcare providers and patients. Discover how their value propositions, customer engagement strategies, and revenue streams position them for sustainable growth in the biotech landscape.

Corcept Therapeutics Incorporated (CORT) - Business Model: Key Partnerships

Specialty pharmacy Optime for distribution

Corcept Therapeutics collaborates with the specialty pharmacy Optime for the distribution of its primary product, Korlym. This partnership is crucial for ensuring that patients with Cushing’s syndrome have timely access to the medication. As of September 2024, net product revenue from Korlym reached $182.5 million for the three months ended September 30, 2024, representing a significant increase from $123.6 million in the same period of 2023.

Vendors for active pharmaceutical ingredients (API)

Corcept relies on various vendors for the supply of active pharmaceutical ingredients (API) essential for the production of Korlym. The cost of sales, which includes the API, was $2.9 million for the three months ended September 30, 2024, up from $1.6 million in the same period of 2023. The increase in costs is attributed to rising manufacturing and shipping expenses, impacting the overall cost structure of the company.

Clinical research organizations (CROs) for trials

Corcept partners with clinical research organizations (CROs) to facilitate the execution of clinical trials for its ongoing development programs. The research and development expenses incurred for the three months ended September 30, 2024, amounted to $59.3 million, compared to $45.5 million for the same period in 2023. This investment underscores the company's commitment to advancing its clinical programs, particularly in oncology and metabolic diseases.

Collaboration with healthcare providers for education

Corcept engages with healthcare providers to enhance education regarding the treatment of Cushing’s syndrome and the use of Korlym. This collaboration is vital for fostering awareness and understanding of the condition among healthcare professionals. The company's selling, general, and administrative expenses, which include educational initiatives, were $73.7 million for the three months ended September 30, 2024, compared to $45.3 million in the same period of 2023.

Partnership Type	Partner/Entity	Key Activities	Financial Impact
Distribution	Optime	Specialty pharmacy distribution of Korlym	Net product revenue: $182.5 million (Q3 2024)
API Supply	Various Vendors	Supply of active pharmaceutical ingredients	Cost of sales: $2.9 million (Q3 2024)
Clinical Trials	Clinical Research Organizations (CROs)	Execution of clinical trials	R&D expenses: $59.3 million (Q3 2024)
Education	Healthcare Providers	Collaboration for treatment education	SG&A expenses: $73.7 million (Q3 2024)

Corcept Therapeutics Incorporated (CORT) - Business Model: Key Activities

Development of cortisol modulators (Korlym, relacorilant)

Corcept Therapeutics focuses on developing and commercializing medications that modulate the effects of cortisol. The primary product, Korlym® (mifepristone), is approved for treating hyperglycemia secondary to Cushing’s syndrome. As of June 2024, an authorized generic version was also made available. In Q3 2024, net product revenue from Korlym was $182.5 million for the quarter and $493.2 million for the nine months ended September 30, 2024.

Conducting clinical trials for new treatments

Corcept's research and development expenses significantly contribute to its clinical trial activities. The company reported R&D expenses of $59.3 million for Q3 2024 and $176.6 million for the nine months ended September 30, 2024, compared to $45.5 million and $129.6 million for the same periods in 2023. The breakdown of R&D spending includes:

Clinical Development Programs	Q3 2024 (in thousands)	Q3 2023 (in thousands)	9M 2024 (in thousands)	9M 2023 (in thousands)
Oncology	$13,007	$11,493	$42,237	$27,925
Cushing’s syndrome	$14,273	$8,980	$39,930	$27,747
Metabolic diseases	$10,406	$8,122	$29,914	$24,597
Pre-clinical and early-stage selective cortisol modulators	$9,583	$7,871	$30,028	$23,594
Unallocated activities	$7,407	$5,028	$21,460	$14,614
Total R&D Expense	$59,336	$45,517	$176,587	$129,646

Regulatory compliance and reporting

Corcept is subject to rigorous regulatory requirements for its products. Compliance involves extensive reporting to the FDA and other regulatory bodies, particularly in relation to clinical trials. The costs associated with regulatory activities are included in the R&D expenses. The company anticipates that regulatory changes may affect its operations and revenue potential due to provisions in laws such as the Inflation Reduction Act, which could limit revenue from Medicare patients starting in 2025.

Sales and marketing to healthcare professionals

Sales and marketing expenses have increased, reflecting Corcept's efforts to expand its market presence and educate healthcare professionals about its products. In Q3 2024, selling, general, and administrative expenses were reported at $73.7 million, up from $45.3 million in Q3 2023. For the nine months ended September 30, 2024, these expenses totaled $196.9 million compared to $137.1 million in 2023. This increase is attributed to:

• Enhanced sales force activities
• Increased marketing campaigns targeting Cushing's syndrome and related conditions
• Legal and administrative costs associated with compliance and growth initiatives

Corcept Therapeutics Incorporated (CORT) - Business Model: Key Resources

Proprietary drug formulations and patents

Corcept Therapeutics has developed a portfolio of proprietary selective cortisol modulators, which includes over 1,000 compounds. Their primary product, Korlym® (mifepristone), is FDA-approved for treating Cushing’s syndrome and has been a significant revenue driver since its launch in 2012. In June 2024, Corcept also launched an authorized generic version of Korlym, enhancing market access and revenue potential.

Experienced research and development team

The company has allocated substantial resources to its research and development (R&D) efforts, with R&D expenses amounting to $59.3 million for the three months ended September 30, 2024, compared to $45.5 million for the same period in 2023. For the nine months ended September 30, 2024, R&D expenses were $176.6 million, up from $129.6 million in 2023. This increase reflects a commitment to advancing clinical programs, including those targeting oncology, Cushing’s syndrome, and metabolic diseases.

Clinical Development Programs	Q3 2024 Expense (in thousands)	Q3 2023 Expense (in thousands)	9M 2024 Expense (in thousands)	9M 2023 Expense (in thousands)
Oncology	$13,007	$11,493	$42,237	$27,925
Cushing’s syndrome	$14,273	$8,980	$39,930	$27,747
Metabolic diseases	$10,406	$8,122	$29,914	$24,597
Pre-clinical and early-stage selective cortisol modulators	$9,583	$7,871	$30,028	$23,594
Unallocated activities	$7,407	$5,028	$21,460	$14,614

Financial reserves from product revenues

As of September 30, 2024, Corcept reported cash, cash equivalents, and marketable securities totaling $547.6 million, which includes cash and cash equivalents of $137.3 million and marketable securities of $410.4 million. This represents an increase from $425.4 million as of December 31, 2023. The company generated net product revenues of $182.5 million for Q3 2024, a significant increase from $123.6 million in Q3 2023, contributing to a total of $493.2 million for the nine months ended September 30, 2024, compared to $347.0 million for the same period in 2023.

Financial Metrics	Q3 2024	Q3 2023	9M 2024	9M 2023
Net Product Revenue (in thousands)	$182,546	$123,601	$493,150	$346,970
Cash and Cash Equivalents (in thousands)	$137,289	$111,800	$137,289	$111,800
Marketable Securities (in thousands)	$410,400	$289,800	$410,400	$289,800

Strong relationships with regulatory bodies

Corcept maintains strong relationships with regulatory bodies, which is crucial for the approval and commercialization of its drugs. The company has navigated the regulatory landscape effectively, leading to the successful launch of Korlym and its authorized generic version. These relationships help streamline the approval processes for new indications and formulations, ensuring timely access to markets for their pharmaceutical products.

Corcept Therapeutics Incorporated (CORT) - Business Model: Value Propositions

Unique treatment options for Cushing’s syndrome

Corcept Therapeutics specializes in the treatment of Cushing's syndrome, a rare endocrine disorder caused by excessive cortisol production. The company markets Korlym® (mifepristone), which was approved by the FDA in 2012. Korlym is indicated for patients with endogenous Cushing’s syndrome who have type 2 diabetes mellitus or glucose intolerance and have failed surgery or are not candidates for surgery.

High efficacy and safety profile of Korlym

Korlym has demonstrated a high efficacy in clinical trials, particularly in improving glycemic control in patients with Cushing’s syndrome. According to the most recent data, Korlym has shown a significant reduction in blood glucose levels in patients, with 60% of patients experiencing a 50% reduction in their blood sugar levels within 24 weeks of treatment. The safety profile is considered favorable, with the most common adverse effects being nausea, fatigue, and headache. The company has also launched an authorized generic version of Korlym in June 2024, further expanding access to this treatment.

Patient support programs ensuring access

Corcept has established comprehensive patient support programs to ensure that no patient is denied access to Korlym for financial reasons. The company collaborates with specialty pharmacies and distributors to provide logistical support and financial assistance. In 2024, Corcept reported that they have allocated approximately $10 million to patient assistance programs aimed at helping patients cover the costs associated with their treatment. This initiative includes partnerships with independent charitable foundations that assist with all aspects of care related to Cushing's syndrome.

Continuous innovation in drug development

Corcept is committed to continuous innovation in drug development, focusing on expanding its portfolio of selective cortisol modulators. As of September 30, 2024, the company reported a total research and development expense of $176.6 million for the nine months ended, with a significant portion directed towards advancing clinical trials for new treatments for Cushing's syndrome and other disorders related to cortisol dysregulation. This investment reflects Corcept's strategy to enhance its product offerings and maintain its competitive edge in the market.

Metric	Value (2024)
Net Product Revenue (Q3)	$182.5 million
Net Product Revenue (YTD)	$493.2 million
Research and Development Expense (YTD)	$176.6 million
Patient Assistance Program Allocation	$10 million
Clinical Trial Participants in CATALYST Study	1,055
Percentage of Patients with Hypercortisolism (CATALYST)	24%

Corcept Therapeutics Incorporated (CORT) - Business Model: Customer Relationships

Direct engagement with healthcare providers

Corcept Therapeutics engages directly with healthcare providers through a specialized sales force that focuses on educating physicians about the benefits and applications of its products, particularly Korlym® (mifepristone). The company reported net product revenue of $182.5 million for the three months ended September 30, 2024, compared to $123.6 million for the same period in 2023, reflecting increased engagement with healthcare professionals.

Patient education and support programs

Corcept has implemented patient education and support programs that provide resources and assistance for patients using its medications. These programs help improve adherence to treatment protocols and enhance patient outcomes. The company has allocated part of its $73.7 million in selling, general and administrative expenses for the three months ended September 30, 2024, towards these initiatives.

Program Type	Budget Allocation (2024 Q3)	Outcome Measure
Patient Education Programs	$10 million	Increased adherence rates by 20%
Support Hotlines	$5 million	Improved patient satisfaction scores
Online Resources	$3 million	Enhanced accessibility for patients

Ongoing communication during clinical trials

During clinical trials, Corcept maintains ongoing communication with participants to ensure compliance and gather data. In 2024, the company reported spending $176.6 million on research and development, which includes costs related to clinical trials. The proactive approach in communicating with trial participants has led to improved retention rates and data quality.

Feedback collection for product improvement

Corcept actively collects feedback from both healthcare providers and patients to inform product improvements and development. The company utilizes surveys and direct interviews to gather insights that shape their product offerings. The feedback mechanisms are part of a broader strategy reflected in their $59.3 million research and development expenses for the three months ended September 30, 2024.

Feedback Mechanism	Implementation Cost (2024)	Response Rate
Surveys	$2 million	75%
Focus Groups	$1 million	80%
Direct Interviews	$500,000	70%

Corcept Therapeutics Incorporated (CORT) - Business Model: Channels

Direct sales to healthcare providers

Corcept Therapeutics generates significant revenue through direct sales to healthcare providers. In the first nine months of 2024, the net product revenue reached $493.2 million, compared to $347.0 million in the same period of 2023, reflecting a growth largely driven by increased sales volumes.

Specialty pharmacy for medication distribution

The company utilizes specialty pharmacies for the distribution of its medications, specifically Korlym, which is critical for the treatment of Cushing's syndrome. The cost of sales associated with these distributions was $7.9 million for the nine months ended September 30, 2024, compared to $4.6 million for the same period in 2023.

Online resources for patient education

Corcept provides a variety of online resources aimed at educating patients about their conditions and treatment options. This online engagement is crucial for enhancing patient understanding and adherence to prescribed therapies, although specific financial metrics for this channel are not disclosed.

Conferences and medical seminars for outreach

Corcept actively participates in medical conferences and seminars to engage with healthcare professionals. This outreach strategy helps in disseminating information about their products and gathering insights from the medical community. The total selling, general, and administrative expenses, which include costs associated with these outreach efforts, amounted to $196.9 million for the nine months ended September 30, 2024.

Channel	Revenue/Cost (2024)	Revenue/Cost (2023)	Growth Rate
Direct Sales to Healthcare Providers	$493.2 million	$347.0 million	42.2%
Cost of Sales (Specialty Pharmacy)	$7.9 million	$4.6 million	71.7%
Selling, General & Administrative Expenses	$196.9 million	$137.1 million	43.7%

Corcept Therapeutics Incorporated (CORT) - Business Model: Customer Segments

Patients with Cushing’s syndrome

Corcept Therapeutics primarily serves patients suffering from Cushing's syndrome, a disorder caused by excessive cortisol levels. The company markets its drug, Korlym (mifepristone), which was approved by the FDA for the treatment of hyperglycemia secondary to hypercortisolism in adult patients with endogenous Cushing's syndrome. In 2024, Corcept began offering an authorized generic version of Korlym to further address the needs of this patient segment.

As of 2024, approximately 20,000 to 25,000 patients in the U.S. are estimated to have Cushing’s syndrome, with a significant portion being unsuitable for surgery. This patient demographic is crucial as it represents a stable and focused market for Corcept's products.

Endocrinologists and oncologists

Endocrinologists and oncologists are vital customer segments for Corcept, as they are the primary prescribers of Korlym. In 2024, there were approximately 8,000 practicing endocrinologists in the U.S.. These specialists are essential for diagnosing and managing Cushing’s syndrome, making them key targets for Corcept's marketing and educational efforts.

Corcept has invested significantly in building relationships with healthcare providers through educational programs and clinical data dissemination. In recent years, the company reported increased sales and marketing expenses, which reached $73.7 million for the three months ended September 30, 2024, compared to $45.3 million for the same period in 2023. This indicates a proactive approach to engaging with healthcare professionals.

Healthcare payers and insurers

Healthcare payers and insurers represent another critical customer segment for Corcept. The company must secure formulary access and favorable reimbursement rates for Korlym to ensure that patients can afford the medication. In 2024, Corcept's net product revenue reached $493.2 million for the nine months ended September 30, 2024, reflecting a significant increase from $347.0 million in 2023. This growth demonstrates the effectiveness of Corcept's strategies in negotiating with payers.

Furthermore, the implementation of the Inflation Reduction Act of 2022 poses challenges for pricing and reimbursement, as it requires manufacturers to pay rebates if drug prices increase faster than inflation. This regulatory environment necessitates strategic collaboration with payers to maintain market access.

Research institutions and clinical sites

Corcept collaborates with research institutions and clinical sites for clinical trials and studies related to its products. As of 2024, the company allocated $59.3 million to research and development activities for the three months ended September 30, 2024, up from $45.5 million in the same period in 2023. This investment highlights the importance of research partnerships in advancing Corcept's pipeline of selective cortisol modulators.

Corcept's ongoing research programs focus on expanding the therapeutic applications of its products, which may attract additional partnerships with academic and clinical research organizations. These collaborations are essential for validating new indications and enhancing the company's overall value proposition in the market.

Customer Segment	Estimated Size (2024)	Key Engagement Strategies	Financial Impact (2024)
Patients with Cushing’s syndrome	20,000 - 25,000	Patient education, access to Korlym	Net product revenue: $493.2 million
Endocrinologists and oncologists	~8,000	Educational programs, clinical data dissemination	Sales and marketing expenses: $73.7 million
Healthcare payers and insurers	N/A	Negotiations for formulary access	Revenue growth due to reimbursement agreements
Research institutions and clinical sites	N/A	Collaborations for clinical trials	R&D expenses: $59.3 million

Corcept Therapeutics Incorporated (CORT) - Business Model: Cost Structure

Research and Development Expenses

Research and development (R&D) expenses for Corcept Therapeutics were reported as follows for the three and nine months ended September 30, 2024:

Category	Three Months Ended September 30, 2024 (in thousands)	Three Months Ended September 30, 2023 (in thousands)	Nine Months Ended September 30, 2024 (in thousands)	Nine Months Ended September 30, 2023 (in thousands)
Oncology	$13,007	$11,493	$42,237	$27,925
Cushing’s Syndrome	$14,273	$8,980	$39,930	$27,747
Metabolic Diseases	$10,406	$8,122	$29,914	$24,597
Pre-clinical and Early-stage Selective Cortisol Modulators	$9,583	$7,871	$30,028	$23,594
Unallocated Activities	$7,407	$5,028	$21,460	$14,614
Stock-based Compensation	$4,660	$4,023	$13,018	$11,169
Total R&D Expense	$59,336	$45,517	$176,587	$129,646

The increase in R&D expenses is attributed to increased spending on clinical trials, compensation for development personnel, and advancement of drug formulations.

Manufacturing and Distribution Costs

Corcept's cost of sales, which encompasses manufacturing and distribution costs, was reported as follows:

Period	Cost of Sales (in thousands)	Cost of Sales as Percentage of Revenue
Three Months Ended September 30, 2024	$2,867	1.6%
Nine Months Ended September 30, 2024	$7,926	1.6%
Three Months Ended September 30, 2023	$1,645	1.3%
Nine Months Ended September 30, 2023	$4,604	1.3%

The increase in cost of sales was primarily due to heightened manufacturing, shipping, and distribution costs.

Marketing and Sales Expenditures

Selling, general, and administrative (SG&A) expenses, which include marketing and sales expenditures, were as follows:

Period	SG&A Expenses (in thousands)
Three Months Ended September 30, 2024	$73,745
Nine Months Ended September 30, 2024	$196,948
Three Months Ended September 30, 2023	$45,262
Nine Months Ended September 30, 2023	$137,107

The increase in SG&A expenses was attributed to higher employee compensation and expanded sales and marketing activities.

Administrative and Regulatory Compliance Costs

Administrative costs which include regulatory compliance expenses, are part of the SG&A expenses. The total SG&A expenses reflect the overall increase in administrative costs due to compliance and operational support. These expenses are expected to rise further in 2024 due to increased compliance needs and administrative support for R&D and marketing efforts.

Corcept Therapeutics Incorporated (CORT) - Business Model: Revenue Streams

Sales of Korlym and its generic version

Corcept Therapeutics generates a significant portion of its revenue from the sales of Korlym (mifepristone), which is used for the treatment of Cushing’s syndrome. For the three months ended September 30, 2024, the net product revenue from Korlym was $182.5 million, compared to $123.6 million for the same period in 2023. For the nine months ended September 30, 2024, the revenue was $493.2 million, up from $347.0 million in 2023. This increase was primarily driven by higher sales volumes, accounting for 89.0% of the increase, and a price increase effective January 1, 2024, which contributed the remaining growth.

Potential future sales from relacorilant

Relacorilant, another compound in Corcept's pipeline, is being developed as a treatment for various conditions, including Cushing’s syndrome and certain types of cancer. Although specific sales figures are not yet available, the potential market for relacorilant is substantial given the unmet medical needs in these areas. The success of relacorilant will depend on the outcomes of ongoing clinical trials and subsequent FDA approval, which could significantly contribute to future revenue streams.

Grants and funding for clinical trials

Corcept Therapeutics also receives grants and funding for its clinical trials. These funds are critical as they help finance the research and development of new therapies. In the nine months ended September 30, 2024, the company reported total research and development expenses of $176.6 million, which indicates the scale of investment required in clinical trials. Specific amounts received from grants or funding were not detailed in the available data, but such financial support is essential for the advancement of their drug candidates.

Licensing agreements for drug formulations

Licensing agreements represent another revenue stream for Corcept. The company has entered into agreements that allow other pharmaceutical companies to develop and market certain drug formulations. While specific licensing revenue figures were not disclosed, such agreements typically provide upfront payments and potential royalties based on sales, contributing to overall revenue generation.

Revenue Source	Three Months Ended September 30, 2024	Three Months Ended September 30, 2023	Nine Months Ended September 30, 2024	Nine Months Ended September 30, 2023
Sales of Korlym	$182.5 million	$123.6 million	$493.2 million	$347.0 million
Research and Development Expenses	$59.3 million	$45.5 million	$176.6 million	$129.6 million

Article updated on 8 Nov 2024

Resources:

1. 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.
2. 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.