Corcept Therapeutics, a pharmaceutical company, experienced a significant drop in its stock price as it faced a patent trial with Teva Pharmaceuticals. Court observers predict that Corcept is likely to lose the trial, causing concern among traders. The patent dispute revolves around Korlym, a drug used for treating Cushing’s syndrome. Teva had previously attempted to invalidate the patent but was unsuccessful. According to Michael D. Cohen, director of research at MDC Financial Research, Teva has a higher chance of winning the trial (65%) compared to Corcept (35%).
The trial was initially scheduled to begin on Wednesday, with Corcept suing Teva in federal court in 2018 to prevent them from marketing a generic version of Korlym. Throughout the trial, the judge has been encouraging the two parties to reach a settlement. Despite the looming legal battle, Corcept’s Chief Business Officer, Charlie Robb, expressed confidence in the company’s case and emphasized that they believe the law and facts are on their side. However, the market responded negatively to the uncertainty surrounding the trial, resulting in a drop in Corcept’s stock price.
Additionally, it is worth noting that Corcept Therapeutics has a significant short interest of 17%. This suggests that there are investors who are betting against the company’s success, which further adds to the volatility and potential risks surrounding the ongoing patent trial.