Why Corcept Therapeutics stock crashed today and what comes next?

Core Insights - Corcept Therapeutics experienced a significant stock decline of approximately 50% on December 31 due to the FDA's request for additional data on relacorilant, its treatment for Cushing's syndrome, raising concerns about the company's pipeline strength [1][2] - The setback has led analysts to remove relacorilant from financial models, negatively impacting investor confidence and future revenue expectations [2][3] - Despite the negative news, some analysts believe the market reaction may be exaggerated, suggesting potential upside for the stock if management can address regulatory concerns [4][6] Financial Performance - In the latest reported quarter, Corcept generated nearly $20 million in net income and $208 million in revenue, reflecting a year-over-year increase of approximately 14% [7] - The company's price-to-sales (P/S) ratio is around 10, which is considered reasonable for a fast-growing biotech firm [5] Market Position and Future Outlook - Korlym, Corcept's existing product, is facing pressure from generic competition, particularly from Teva Pharmaceuticals, limiting growth potential in its primary therapeutic area [3] - The ongoing research in ovarian cancer and the potential of relacorilant in oncology could provide new revenue streams, indicating that the company is not fundamentally broken despite recent setbacks [8][9] - The current valuation may present an attractive entry point for long-term investors, especially if the company can successfully navigate regulatory challenges and diversify its pipeline [8]