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Corcept Therapeutics Announces Second Quarter Results and Corporate and Development Update

Corcept Therapeutics Incorporated (NASDAQ: CORT), a pharmaceutical company engaged in the discovery and development of drugs for the treatment of severe metabolic and psychiatric disorders, reported financial results today for the second quarter ended June 30, 2010, and updated its anticipated milestones for 2010.

“We are pleased with our accomplishments during the second quarter. We completed enrollment of our Phase 3 study of CORLUX for Cushing’s Syndrome and strengthened our financial position with two important financing transactions,” said Joseph Belanoff, M.D., Chief Executive Officer of Corcept. “With enrollment of the trial completed in June, we expect to announce the top-line results of the Cushing’s Syndrome study in December.”

Corporate and Development Highlights

  • Completed enrollment of the planned 50 patients in our open-label Phase 3 trial of CORLUX in patients with Cushing's Syndrome, which is being conducted at 20 leading medical facilities throughout the United States.
  • In April, raised gross proceeds of $7.7 million through the exercise of warrants that were issued in October 2009 and the private placement of new warrants. Participants in this financing included existing investors Longitude Capital, Sutter Hill Ventures, Federated Kauffman Funds, and members of our Board of Directors.
  • In June, raised gross proceeds of $15 million through an underwritten public offering of 5 million shares of common stock at $3 per share to new institutional investors.
  • Selected a second compound, CORT 113083, from one of our three patented series of selective GR-II antagonists and began activities toward an Investigational New Drug (IND) filing in 2011.

In addition, we continued to make progress on:

  • Preparing for the submission of our NDA for CORLUX in Cushing's Syndrome, including the design of a Risk Evaluation and Mitigation Strategy (REMS), to enable submission in the first quarter of 2011.
  • Developing detailed plans for the commercialization of CORLUX in the United States.
  • Enrolling patients in our double-blind placebo controlled Phase 3 trial of CORLUX in patients with psychotic depression at eight clinical sites.

Second Quarter Financial Results

For the second quarter of 2010, Corcept reported a net loss of $5.7 million, or $0.09 per share, compared to a net loss of $4.9 million, or $0.10 per share, for the second quarter of 2009.

Total operating expenses increased to $6.4 million for the second quarter of 2010, from $4.9 million for the same period in 2009. In the second quarter of 2010, research and development expenses increased to $4.6 million from $3.3 million in the second quarter of 2009. This increase in research and development expenses was due primarily to increased costs associated with clinical trials for CORLUX for the treatment of Cushing’s Syndrome, the conduct of drug-drug interaction studies for CORLUX and other NDA supportive activities, and our selective GR-II antagonist program, including a Phase 1 study of CORT 108297. This was partly offset by the completion of our CORLUX and Risperdal trial for the treatment of antipsychotic induced weight gain, and scaling back the number of sites in the Phase 3 study of CORLUX for the treatment of psychotic depression. General and administrative expenses increased to $1.9 million for the second quarter of 2010 from $1.5 million for the same period in 2009, due to additional resources focused on commercial planning for the potential launch of CORLUX in Cushing’s Syndrome.

Our cash balance as of June 30, 2010 was $35.4 million, up from $23.9 million at December 31, 2009. “We anticipate that our current cash balance is sufficient to fund the company into the third quarter of 2011,” said Caroline Loewy, Chief Financial Officer of Corcept.

Four Key Anticipated Milestones for 2010

In January 2010, we announced four key anticipated milestones for 2010. We have achieved two of those milestones with the initiation of a Phase 1 study of CORT 108297 in February and the completion of enrollment of the planned 50 patients in our Phase 3 study of CORLUX for the treatment of Cushing’s Syndrome in June. Based on the timing of completion of enrollment and the 24-week duration of treatment to address the endpoints agreed to with the FDA, we are on track to announce top-line efficacy results in December, achieving our third key milestone. Our fourth milestone, our NDA submission to the FDA, is anticipated in the first quarter of 2011.

“This is a transformational year for Corcept, driven by the achievement of several important milestones, most particularly in our Cushing's Syndrome program. We believe that the Cushing’s Syndrome program provides near-term value creation for our shareholders. The FDA granted us Orphan Drug Designation for CORLUX for the treatment of endogenous Cushing’s Syndrome, which provides seven years of marketing exclusivity from the date of approval, which could be as early as 2011,” added Dr. Belanoff.

About Cushing’s Syndrome
Endogenous Cushing's Syndrome is caused by prolonged exposure of the body's tissues to high levels of the hormone cortisol and is generated by tumors that produce cortisol or ACTH. Cushing’s Syndrome is an orphan indication which most commonly affects adults aged 20 to 50. An estimated 10 to 15 of every one million people are newly diagnosed with this syndrome each year, resulting in over 3,000 new patients in the United States. An estimated 20,000 patients in the United States have Cushing’s Syndrome. Symptoms vary, but most people have one or more of the following manifestations: high blood sugar, diabetes, high blood pressure, upper body obesity, rounded face, increased fat around the neck, thinning arms and legs, severe fatigue and weak muscles. Irritability, anxiety, cognitive disturbances and depression are also common. Cushing’s Syndrome can affect every organ system in the body and can be lethal if not treated effectively.

About Psychotic Depression
Psychotic depression is a serious psychiatric disorder that affects approximately three million people annually in the United States. It is more prevalent than either schizophrenia or bipolar I disorder. The disorder is characterized by severe depression accompanied by delusions, hallucinations or both. People with psychotic depression are approximately 70 times more likely to commit suicide than the general population and often require lengthy and expensive hospital stays. There is no FDA-approved treatment for psychotic depression.

About Weight Gain Caused by Antipsychotic Medications
The group of medications known as second-generation antipsychotics, including olanzapine (Zyprexa), risperidone (Risperdal), quetiapine (Seroquel) and clozapine (Clozaril), are widely used to treat schizophrenia and bipolar disorder. All medications in this group are associated with treatment emergent weight gain of varying degrees and also carry warning labels relating to treatment emergent hyperglycemia and diabetes mellitus. Weight gain and alterations in metabolic efficiency have been observed for many years in patients with abnormally high circulating cortisol. There is no FDA-approved treatment for the weight gain associated with the use of antipsychotic medications.

About CORLUX
Corcept’s first-generation compound, CORLUX, also known as mifepristone, directly blocks the cortisol (GR-II) receptor and the progesterone (PR) receptor. Intellectual property protection is in place to protect important methods of use for CORLUX. Corcept retains worldwide rights to its intellectual property related to CORLUX.

About CORT 108297 and CORT 113083
CORT 108297 and CORT 113083 are two of several potent, selective antagonists of the cortisol (GR-II) receptor that we have discovered and for which Corcept owns worldwide intellectual property rights. In in vitro binding affinity and functional assays neither of these compounds have affinity for the progesterone (PR), estrogen (ER), androgen (AR) or mineralocorticoid (GR-I) receptors.

About Corcept Therapeutics Incorporated
Corcept is a pharmaceutical company engaged in the discovery and development of drugs for the treatment of severe metabolic and psychiatric disorders. The company has two ongoing Phase 3 programs: CORLUX for the treatment of Cushing’s Syndrome, and CORLUX for the treatment of the psychotic features of psychotic depression. Corcept also has a Phase 1 program for CORT 108297 and an IND-enabling program for CORT 113083. Corcept has developed an extensive intellectual property portfolio that covers the use of GR-II antagonists in the treatment of a wide variety of psychiatric and metabolic disorders, including the prevention of weight gain caused by the use of antipsychotic medication, as well as composition of matter patents for our selective GR-II antagonists.

Statements made in this news release, other than statements of historical fact, are forward-looking statements, including, for example, statements relating to Corcept’s clinical development and research programs, the timing of the introduction of CORLUX and future product candidates, including CORT 108297 and CORT 113083, estimates of the timing of enrollment or completion of our clinical trials and the anticipated results of those trials, the ability to create value from CORLUX or other future product candidates and our estimates regarding our capital requirements, spending plans and needs for additional financing. Forward-looking statements are subject to a number of known and unknown risks and uncertainties that might cause actual results to differ materially from those expressed or implied by such statements. For example, there can be no assurances with respect to the cost, rate of spending, completion or success of clinical trials; financial projections may not be accurate; there can be no assurances that Corcept will pursue further activities with respect to the development of CORLUX, CORT 108297, CORT 113083 or any of its other selective GR-II antagonists. These and other risk factors are set forth in the Company's SEC filings, all of which are available from our website (www.corcept.com) or from the SEC's website (www.sec.gov). We disclaim any intention or duty to update any forward-looking statement made in this news release.

CORCEPT THERAPEUTICS INCORPORATED
CONDENSED BALANCE SHEETS
(in thousands)

 

June 30,

2010

December 31,

2009
 
 

(Unaudited)

(Note)

ASSETS:

   

Current assets:

   

Cash and cash equivalents

    $       35,385

    $        23,867

Other current assets

                   621

                   553

Total current assets

            36,006

             24,420

     

Other assets

                     91

                     91

Total assets

    $        30,097

    $        24,511

     

LIABILITIES AND STOCKHOLDERS’ EQUITY:

   

Current liabilities:

   

Accounts payable

    $          1,173

    $          1,270

Other current liabilities

                1,686

                1,149

            Total current liabilities

               2,859

               2,419

     

Total stockholders’ equity

              33,238

              22,092

     

            Total liabilities and stockholders’ equity

    $        36,097

    $        24,511

Note:  Derived from audited financial statements at that date.

   

CORCEPT THERAPEUTICS INCORPORATED
STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)

(Unaudited)

  For the Three Months Ended

June 30,
For the Six Months Ended

June 30,
 

2010

2009

2010

2009

         

Collaboration revenue

  $                — $               _6

  $                —

  $                30

         

Operating expenses:

       

     Research and development*

4,574 3,342

         9,063

7,526

     General and administrative*

1,871 1,546

3,446

2,920

            Total operating expenses

         6,445          4,888          12,509          10,446
         

Loss from operations

(6,445) (4,882)

(12,509)

(10,416)

         

Interest and other income, net

753 6

755

92

Other expense

(3) (2)

(14)

(4)

            Net loss

$            (5,695) $            (4,878)

$           (11,768)

$         (10,328)

         
         

Basic and diluted net loss per share

$              (0.09) $              (0.10)

$                (0.18)

$             (0.21)

Shares used in computing basic and diluted net loss per share

             66,142              49,763

             64,408

             49,763

         

*Includes non-cash stock-based compensation of the following:

       

            Research and development

$                    62 $                    68

$                   125

$                 132

            General and administrative

                  440                   399

                  861

                  758

      Total non-cash stock-based compensation

$                   502 $_               467

$_                986

 $_              890

CONTACT:
Caroline Loewy
Chief Financial Officer
Corcept Therapeutics
650-688-8783
cloewy@corcept.com
www.corcept.com

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