Corcept Therapeurtics Incorporated CORT 0.23% shares are down more than 7 percent Tuesday after the company seemingly reported a steep decline in Korlym prescriptions. However, the stock is bouncing off its lows on what Stifel analyst Adam Walsh says is a simple misunderstanding.
According to Walsh, the sell-off was triggered due to confusion over a transition in specialty pharmacy distribution partners from Dohmen Life Science Services to Optime Care, Inc. In a new note Tuesday, Walsh said Dohmen had been providing prescription tracking information to Symphony prior to the transition but stopped doing so after the change was made. As a result, the Symphony tracking information indicated a steep decline in prescriptions due to the lack of information.
“We spoke with Corcept management today and they continue to reiterate their previous public statements regarding Korlym acceleration,” Walsh wrote.
In fact, not only is Tuesday’s sell-off overdone, Walsh said Corcept is a great buy considering its rapidly expanding Cushing’s syndrome franchise. Walsh said he expects this growth trend to continue for several more years driven by increasing physician awareness, improvements in patient identification and targeted sales initiatives.
Prior to Tuesday’s sell-off, Corcept stock was trading above $20 per share, in line with Stifel’s $20 price target. However, the stock dipped…
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