CORT Q3 Deep Dive: Pharmacy Transition and Pipeline Expansion Drive Mixed Outlook

Biopharma company Corcept Therapeutics (NASDAQ:CORT) missed Wall Street’s revenue expectations in Q3 CY2025, but sales rose 13.7% year on year to $207.6 million. The company’s full-year revenue guidance of $825 million at the midpoint came in 3.3% below analysts’ estimates. Its GAAP profit of $0.16 per share was 21.8% above analysts’ consensus estimates.

Is now the time to buy CORT? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

Corcept Therapeutics’ third quarter results drew a negative market reaction as the company’s revenue missed Wall Street expectations, despite robust year-on-year growth. Management highlighted persistent capacity constraints with its former specialty pharmacy partner as a key factor limiting revenue capture. President of Endocrinology Sean Maduck explained, “Our financial results don’t fully reflect the surge in demand,” attributing recent bottlenecks to insufficient pharmacy capacity. The company has since begun transitioning to a new pharmacy, aiming to better meet rising prescription volumes and position Corcept for future growth.

Looking ahead, Corcept’s guidance reflects both optimism and caution as it navigates ongoing pharmacy transitions and prepares for major regulatory milestones. CEO Joseph Belanoff emphasized that physician awareness of hypercortisolism is rising, supported by recent clinical trial data, and that the company is scaling its sales force and distribution network to support anticipated demand. He noted, “We are confident that our Cushing’s syndrome business will continue to grow for years,” while also preparing for the potential launch of relacorilant in new indications, pending FDA approvals in 2026.

Key Insights from Management’s Remarks

Management cited pharmacy network changes, accelerating prescription growth, and pipeline progress as central to both the quarter’s performance and updated guidance.

• Pharmacy transition underway: Corcept began shifting prescription fulfillment to a new specialty pharmacy in October after ongoing capacity constraints at its prior partner. This move is expected to better match the growing patient base and improve prescription throughput.

• Prescription volume acceleration: The company reported a 42.5% year-over-year increase in tablets shipped for Korlym, driven by record prescription levels and a growing base of prescribers. However, management acknowledged that distribution limitations temporarily capped revenue growth.

• Sales force expansion: Corcept increased its clinical specialist sales team from 60 to 150 over the past year, aiming to capitalize on increased physician awareness of hypercortisolism and to support education efforts around new clinical data.

• Pipeline milestones approaching: The company faces key regulatory decisions with relacorilant, its next-generation cortisol modulator, including PDUFA (Prescription Drug User Fee Act) dates for hypercortisolism in December 2025 and for ovarian cancer in July 2026. Additional pivotal trial readouts are expected over the next 18 months.

• Product mix shift to generics: Authorized generics accounted for over 70% of Korlym’s business in the quarter, with net pricing about 30% below branded levels. Management anticipates this trend will continue, impacting average selling prices but potentially broadening patient access.

Drivers of Future Performance

Corcept’s outlook for the coming quarters centers on scaling its pharmacy network, preparing for new product launches, and executing multiple late-stage clinical trials.

• Sales infrastructure expansion: Management is focused on onboarding additional specialty pharmacies and broadening distribution channels to support anticipated growth from new and existing products. This is seen as critical for capturing unmet demand and accommodating larger patient populations.

• Major regulatory milestones: Upcoming FDA decisions on relacorilant for hypercortisolism and ovarian cancer are expected to shape the company’s growth trajectory. Management believes positive outcomes could accelerate adoption and market share, though regulatory uncertainty remains a risk.

• Increased R&D and SG&A investment: Corcept plans to maintain or grow research and development spending to support its expanding clinical pipeline, while also increasing selling, general, and administrative expenses in preparation for multiple potential product launches. This investment may pressure near-term margins but is viewed as necessary for long-term growth.

Catalysts in Upcoming Quarters

In the quarters ahead, our team will monitor (1) the pace and effectiveness of Corcept’s pharmacy network expansion, (2) updates on regulatory reviews and potential approvals for relacorilant in both endocrine and oncology indications, and (3) initial data readouts from pivotal clinical trials in hypertension, liver disease, and ALS. The company’s ability to execute on these milestones will be key to its growth trajectory.

Corcept currently trades at $66.14, down from $71.19 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).

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