Investigation Initiated into Corcept Therapeutics Following Dramatic Share Price Drop

Investigation Into Corcept Therapeutics

Introduction
The situation surrounding Corcept Therapeutics Incorporated (NASDAQ: CORT) has caught the attention of investors and regulators alike following a staggering decline in its stock price. On December 31, 2025, the company's share prices plummeted by 50%, spurred by the announcement of a complete response letter (CRL) from the FDA regarding its treatment for hypercortisolism known as relacorilant. This dramatic turn of events prompted national shareholder rights law firm Hagens Berman to kick off an investigation, prompting questions about possible misrepresentations by Corcept regarding the drug's efficacy and potential for commercial success.

Background on Corcept Therapeutics

Corcept Therapeutics is a prominent player in the biopharmaceutical sector, focusing on the treatment of conditions related to cortisol dysregulation and its associated effects. The company has previously highlighted the efficacy of relacorilant, suggesting it had significant commercial prospects based on clinical trial data indicating "clinically meaningful improvements in a wide range of hypercortisolism signs and symptoms."
In prior communications, management exuded confidence in the drug's path towards FDA approval, asserting expectations to generate annual revenues in the range of $3 to $5 billion within a few years. Such optimistic projections played a crucial role in shaping investor sentiments, yet these assumptions now appear to be under serious scrutiny after the unexpected CRL arrival.

The FDA's Complete Response Letter

The CRL issued by the FDA on December 31 served to indicate that the agency could not grant approval for relacorilant based on the data submitted. Corcept was notified that additional evidence of effectiveness would be necessary for the FDA to conduct a favorable benefit-risk assessment. This marked a significant departure from Corcept's previous assurances about the expected timelines and outcomes for the drug's approval.
Market reactions were swift - with Corcept's share price dropping over $35 in one day, resulting in a staggering loss of over $3.6 billion in market capitalization. Investors expressed dismay at the unanticipated turn of events, raising a multitude of questions about the company's prior assertions.

Law Firm's Investigation

Reed Kathrein, a partner at Hagens Berman leading the investigation, indicated that the firm will delve into whether Corcept overstated relacorilant's efficacy and if false assurances were provided regarding its commercial positioning within the hypercortisolism business segment. The firm is actively soliciting testimonies from investors who have endured substantial losses in light of these developments.
The investigation aims to determine potential breaches of regulatory practices and corporate governance that might hold Corcept accountable for its communications and actions leading up to the FDA's decisive letter.

Investors' Options

Corcept investors who suffered significant losses and may possess crucial information related to the case are urged to step forward. For those who feel they have been misled by the company's statements, Hagens Berman invites them to get in touch for a thorough review of their rights and potential claims. The firm outlines different paths for investors to assess their options, possibly tapping into the whistleblower program offered by the SEC, which provides incentives for individuals reporting original information.

Conclusion

Corcept Therapeutics stands at a pivotal moment filled with uncertainty as the implications of the FDA's CRL expand. The ongoing investigation by Hagens Berman seeks to clarify accountability, focusing on the integrity of the information investors received concerning relacorilant's expected approval and subsequent potential market success. The outcome of this inquiry could shape the story of Corcept and its stakeholders moving forward.

For more details, investors can reach out to Hagens Berman direct via their official contact channels or visit their website for necessary information pertaining to the investigation.