CORT - Corcept initiated as a buy at Jefferies on 'underappreciated' Cushing's business

Jefferies is assuming Corcept Therapeutics ( NASDAQ: CORT ) with a buy rating citing the profitability of the company's Cushing Syndrome drug Korlym.

The firm has a price target of $35 (~31% upside based on Tuesday's close).

Shares are up 8% in Wednesday morning trading.

Analyst Dennis Ding said that Korlym (mifepristone) provides high margins, is profitable, and generates free cash flow.

Corcept ( CORT ) reported 2021 revenue of $366M, due almost entirely to sales of Korlym. For 2022, the company has projected revenue of $400M-$430M.

Ding added that pipeline readouts over the next few years should add to top and bottom-line growth.

Corcept ( CORT ) has relacorilant, a follow-on to mifepristone, in in phase 3 for Cushing's. It also has miricorilant in phase 2 for antipsychotic-induced weight gain, and CORT108297 also in phase 2 for post-traumatic stress disorder.

In addition, the company is testing mifepristone in other indications such as prostate and breast cancers; alcohol use disorder; and central serous chorioretinopathy.

Ding wrote that Korlym is a potential $500M-$1B opportunity and relacorilant could add another $500M in peak Cushing's sales.

Corcept ( CORT ) just began a phase 3 trial of relacorilant in ovarian cancer .

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