Corcept Therapeutics (CORT) has started February on a very bad note as general market volatility (in part a response to the January momentum run) and potential entrance of generic competition has shaved off 40% of the value of the shares. This is despite a very strong outlook for 2018.
While binary events, in terms of generic competition invading the market, remain very tricky events to analyse, I believe that legal and alternative products give the company ammunition to fend off competition quite a bit. As a result, I am looking to initiate a small speculative position at these lower levels.
A Look At The Past
Corcept Therapeutics has been established back in 1998 after which the company went public in 2004. Shares fell quickly from levels above the $10 mark to less than a dollar by 2006. No working product and continued losses resulted in cash burn and continued dilution (at low prices) which made that shares traded in low single digits in the years to follow.