The FDA Just Snubbed Corcept Therapeutics. Should You Buy the Dip in CORT Stock or Stay Far Away

Core Viewpoint - Corcept Therapeutics faced a significant setback after the FDA rejected its application for relacorilant, a treatment for Cushing's syndrome, due to insufficient data for a favorable benefit-risk assessment [1][3][4] Company Impact - The FDA's rejection has led to a 70% decline in CORT stock compared to its March high, indicating a drastic market reaction [2] - Relacorilant was expected to be a key product for Corcept's growth strategy, aimed at diversifying beyond its existing Korlym franchise [3][4] - The company now faces uncertainty as it must conduct additional trials, which will be costly and time-consuming [4] Market Competition - The rejection hampers Corcept's ability to compete with Xeris Biopharma's Recorlev in the Cushing's syndrome market, which is projected to triple from the current $1 billion by the end of the decade [5] - The extended timeline for relacorilant's development may allow Recorlev to capture a larger market share [5] Technical Analysis - CORT shares are trading below major moving averages, indicating ongoing weakness in the stock [6] - Insider selling has been prevalent over the past 12 months, reinforcing bearish sentiment for Corcept heading into 2026 [6] Wall Street Sentiment - Prior to the FDA decision, Wall Street had a consensus "Moderate Buy" rating on Corcept stock, with a mean target of approximately $127, suggesting an upside potential of about 80% from its previous close [7]