CORT Stock Drops After Appeals Court Sides With Teva In Korlym Patent Fight

by

The ruling pertains to Corcept’s Korlym tablets for the treatment of Cushing syndrome.

  • Corcept’s mifepristone product Korlym was approved by the FDA in 2012 to treat Cushing’s syndrome and subsequently, in 2020, Teva got the agency’s approval to market a generic version of the drug.
  • Corcept appealed a decision from the United States District Court for the District of New Jersey finding no infringement of patents but the appeals court affirmed the lower court’s ruling.
  • The appeals court on Thursday noted that Corcept failed to prove direct infringement.

Shares of Corcept Therapeutics (CORT) plunged 15% on Thursday after the United States Court of Appeals for the Federal Circuit issued a ruling backing Teva Pharmaceutics (TEVA) in a patent dispute involving its Korlym tablets.

Add Asianet Newsable as a Preferred Source

Corcept appealed a decision from the United States District Court for the District of New Jersey finding no infringement of patents, but the appeals court affirmed the lower court’s ruling.

TEVA shares edged up marginally at the time of writing. 

Korlym Patent Fight

Corcept’s mifepristone product Korlym was approved by the U.S. Food and Drug Administration in 2012 to treat Cushing’s syndrome. Subsequently in 2020, Teva got the agency’s approval to market a generic version of the drug to treat the rare, serious endocrine disorder caused by chronic, excessive exposure to high cortisol levels. However, Corcept posited that the generic drug infringes its patents.

In 2023, a New Jersey district court ruled that Teva does not infringe upon Corcept’s patents and the company subsequently appealed. The appeals court on Thursday noted that Corcept failed to prove direct infringement.

“We perceive no clear error in the district court’s finding—based on “all the relevant evidence”—that Corcept failed to prove that if Teva’s proposed product were marketed, direct infringement would result,” the court said. “Because we see no clear error in the district court’s fact findings regarding direct infringement, we need not and do not reach the additional finding of specific intent to induce infringement.”

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around CORT stock rose from ‘bearish’ to ‘bullish’ territory over the past 24 hours, while message volume increased from ‘extremely low’ to ‘high’ levels.

CORT stock has lost 54% over the past 12 months while TEVA nearly doubled its value. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.<

Leave a Comment