Thursday, November 11, 2010

(Corlux) Corcept 3Q loss widens as research costs rise

Drug developer Corcept Therapeutics Inc. said Wednesday its third-quarter loss widened as expenses rose in part due to late-stage clinical research.

The Menlo Park, Calif., company lost $7.1 million, or 10 cents per share, in the three months that ended Sept. 30. That compares with a loss of $4.7 million, or 9 cents per share, in the same quarter last year. The company reported no revenue from either quarter.

Analysts polled by Thomson Reuters expected, on average, a loss of 10 cents per share on no revenue.

Corcept is running a late-stage trial of its drug candidate Corlux, and it expects to report results by the end of the year. It is studying the drug as a treatment for the hormone disorder Cushing's syndrome and also enrolling patients in a trial testing Corlux as a treatment for psychotic depression.

Cushing's syndrome is caused by overproduction of the hormone cortisol, or overexposure to cortisol. Its symptoms can include high blood sugar, high blood pressure, fatigue, and weak muscles.

The company said the Food and Drug Administration has granted an orphan drug designation for Corlux for the treatment of Cushing's syndrome. That will provide seven years of marketing exclusivity from the date of approval. Corcept expects to submit a new drug application to the Food and Drug Administration in the first quarter of 2011.

Corcept said its operating expenses climbed 52 percent to $7.1 million, as research and development expenses rose. General and administrative expenses also climbed, as the company planned for the possible Corlux launch.

The company said it anticipates its cash balance, which was $29 million at the end of September, will be enough to fund the company into next year's third quarter.

Shares rose a penny to $3.62 in morning trading.

From http://www.businessweek.com/ap/financialnews/D9JDCD402.htm