Why Corcept (CORT) Stock Is Trading Lower Today

What Happened?

Shares of biopharma company Corcept Therapeutics (NASDAQ:CORT) fell 4.5% in the morning session after the company’s stock faced continued selling pressure following the U.S. Food and Drug Administration's (FDA) rejection of its new drug application for relacorilant. 

The drop extended the sharp decline from the previous week after the FDA issued a Complete Response Letter for the drug, intended to treat hypertension secondary to hypercortisolism. The agency stated the application lacked sufficient evidence of the drug's effectiveness. This decision was a significant blow to the company's growth strategy, as relacorilant was widely expected to be the successor to its Korlym franchise. 

Following the news, the stock had previously fallen by over 50%. The regulatory setback also prompted some analysts to react, with Canaccord Genuity lowering its price target on the shares. The continued negative momentum reflected ongoing investor concern about the company's future.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Corcept? Access our full analysis report here.

What Is The Market Telling Us

Corcept’s shares are very volatile and have had 27 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 5 days ago when the stock dropped 51.4% on the news that the U.S. Food and Drug Administration (FDA) issued a Complete Response Letter (CRL) rejecting the company's New Drug Application for relacorilant. 

The drug, which was being developed to treat hypertension in patients with hypercortisolism, failed to secure approval because the FDA concluded the submitted data was insufficient. Specifically, regulators noted they could not finalize a favorable benefit-risk assessment without additional evidence regarding the drug's effectiveness. 

This rejection blindsided investors who had widely expected approval based on earlier phase 3 trial results, triggering a massive sell-off as the market repriced the stock to exclude immediate revenue from this key pipeline asset. The dramatic plunge underscores the high stakes surrounding Corcept's effort to diversify beyond Korlym. Relacorilant was viewed as a critical successor that would offer patients a safer, more selective treatment option with fewer side effects. 

By issuing the CRL, the FDA has effectively paused Corcept's growth narrative, raising fears that the company may need to conduct another costly and time-consuming clinical trial. 

Management stated they intend to request a meeting with the FDA immediately to clarify the deficiencies, but the uncertainty of the path forward has fundamentally shaken investor confidence in the company's near-term future.

Corcept is down 4.2% since the beginning of the year, and at $36.61 per share, it is trading 67.9% below its 52-week high of $114.22 from March 2025. Investors who bought $1,000 worth of Corcept’s shares 5 years ago would now be looking at an investment worth $1,409.

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