Corcept Therapeutics Faces Share Price Plunge After Losing Teva Patent Battle

 

Corcept Therapeutics experienced a significant drop in its stock value by 27% on Tuesday following an unfavorable verdict in a patent infringement lawsuit against Teva Pharmaceutical Industries (NASDAQ:TEVA).

The ruling by a US District Court stated that Teva did not violate any claims asserted by Corcept's patents. These patents focus on safe administration methods for their prominent drug, Korlym, especially when used alongside strong inhibitors of CYP3A4, an enzyme predominantly found in the liver and intestine The lawsuit was initiated by Corcept against Teva after the latter sought US Food and Drug Administration (FDA) approval for a generic version of Korlym.

In response to the court's decision, Corcept CEO Joseph Belanoff expressed confidence in an appeal, citing perceived legal and factual errors in the judgment. He reiterated the company's commitment to defending its intellectual property rights whenever infringed upon, highlighting the significance of their patented medical discoveries that have significantly broadened treatment options for patients affected by Cushing’s syndrome. Belanoff emphasized, "Our patents outline medical breakthroughs that have significantly expanded the therapeutic avenues for patients battling Cushing's syndrome, a reason why the FDA integrated them into Korlym's prescribing instructions." The CEO continued, "Physicians have adhered to these guidelines and will continue to do so to ensure the safe treatment of patients. Overlooking the novelty and importance of such discoveries would bring about fundamental changes in the law, adversely affecting numerous patients whom innovative companies aim to serve."

The legal conflict began in 2018 when Corcept filed a patent infringement lawsuit against Teva after the latter sought FDA approval for a generic form of Korlym. Despite ongoing litigation, the FDA granted approval for Teva's generic version in 2020. Corcept had previously indicated in filings with the Securities and Exchange Commission that Teva retained the option to market its generic product despite the ongoing legal dispute.