Thursday, May 5, 2011

More on Corcept

Corcept Therapeutics posted a wider first-quarter loss Wednesday as it prepared a Food and Drug Administration application for a potential Cushing's Syndrome treatment.

The Drug developer, based in Menlo Park, Calif., also said Chief Financial Officer Caroline Loewy will leave the company at the end of next month.

Shares slid 5 percent.

Corcept lost $7.1 million, or 9 cents per share, in the three months that ended March 31. That compares to a loss of $6.1 million, or 10 cents per share, in the final quarter of 2010. Corcept has no products on the market and reported no revenue for the quarter.

Corcept raised about $45 million in gross proceeds from an underwritten public offering of stock in January, and executives said they believe that will be sufficient to run the company into the third quarter of 2012.

Operating expenses rose 17 percent to $7.1 million in the quarter in part due to increased costs tied to its drug application submission for the potential Cushing's Syndrome treatment Corlux. It requested a priority review for the drug, during which the FDA aims to complete its examination in six months instead of 10 months.

Cushing's Syndrome is a condition caused by overproduction of the hormone cortisol or overexposure to it. Its symptoms can include high blood sugar, high blood pressure, fatigue, and muscle weakness. The company also is studying Corlux as a possible treatment for psychotic depression.

The company's general and administrative expenses also rose to $2.2 million from $1.6 million as it prepared for a potential launch of Corlux.

Shares of Corcept Therapeutics Inc. fell 24 cents, to $4.05 in afternoon trading.