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Update 2:50pm: Updates shares, adds legal expert comment.
Corcept Therapeutics (NASDAQ:CORT) plummeted 17% amid a patent trial with Teva PharmaceuticalS (NYSE:TEVA).
Some court observers have said they expect Corcept (CORT) to lose after a hearing on Thursday, according to traders.
Corcept (CORT) has been in a patent battle with Teva (TEVA) over a patent for Cushing’s syndrome drug Korlym, marketed by Corcept. In Decemer 2021 Teva lost an attempt to invalidate a parent for Korlym.
Teva (TEVA) appears to have about a 65% chance of winning vs 35% for Corcept (CORT), Michael D. Cohen, director of research at MDC Financial Research LLC, who viewed the trial since it started, said in a phone interview with Seeking Alpha. Cohen added that the judge had been encouraging the parties to settle.
The Corcept (CORT) trial was scheduled to start on Wednesday. Corcept originally sued Teva (TEVA) in federal court in March 2018 to prevent it from marketing a generic version of Korlym.
“As I said last quarter and then all of the goals we’ve held since this litigation began, we are supremely confident in the strength of our case,” Corcept (CORT) Chief Business Officer Charlie Robb said on the company’s Q2 earnings call last month.” We are happy that our trial date is approaching, we look forward to our day in court. Why is the law and the facts are on our side.”
Corcept (CORT) short interest is 17%.