Corcept sinks to a 52-week low after disclosing U.S. subpoena on Korlym

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• Following a sharp decline in morning hours, the shares of Corcept Therapeutics (CORT -21.9%) have reached a 52-week low after disclosing that it received a records subpoena from the Attorney’s Office for the District of New Jersey.
• The subpoena relates to the sales and promotional activities for Korlym, Cushing’s syndrome drug marketed by the company. News of legal concerns regarding Korlym comes just a day after a U.S. appeals court rejected Teva’s (NYSE:TEVA) bid to invalidate a patent for the drug.
• “The NJ USAO has informed Corcept that it is investigating whether any criminal or civil violations by Corcept occurred in connection with the matters referenced in the subpoena,” Corcept (NASDAQ:CORT) wrote in its regulatory filing on Wednesday.
• In addition, the company also announced an extension to the expiration of its previously announced tender offer for common stock. Early last month, Corcept (CORT) announced the beginning of a tender offer to purchase up to 10M of its common stock par value of $0.001 per share. According to the update, the offer is now expected to close one minute after 11:59 P.M., New York City time, on Dec. 15, from the previously announced time of one minute after 11:59 P.M., New York City time on Dec. 07.
• So far, about 8.2M shares have been tendered for purchase, Corcept (CORT) said, adding that the offer is subject to at least 3M shares being tendered.
• Read more on the company’s tender offer, as announced previously.

Comments

[HaroldRamis]

ok, still trading poorly .

no new info or
reassuring word about the tender from the co.

nice guys

[HaroldRamis]

Im not as smart as you guys, but apparently this spooky news was known by the co on 11/15

if the cancel the tender based on that , it would be outright fraud

[funkskunk]

@HaroldRamis You make a good point, it would be a bad look for management since they did screw this up. Perhaps the tender won't be cancelled to make it up to investors - this is just speculation on my part.

[HaroldRamis]

love how the news feeds blame the tender extension for the carnage

really insightful , those $5 an hour guys

[DiabloStocks]

What is the subpoena disclosure? I can't find anything.

[funkskunk]

@DiabloStocks It was mentioned in an 8-K filing this morning.

[funkskunk]

8.2 million shares submitted for tender, above the 3 million shares minimum condition. The tender extension is curious - the market is reacting like the tender will be cancelled, or is spooked by the subpoena disclosure. Looks like the extension has to do with the new disclosure, otherwise the company could have just cancelled the tender.

[HaroldRamis]

@funkskunk is this disclosure NEW or was it known for a while

[HaroldRamis]

@funkskunk meant known BY THE company

[funkskunk]

@HaroldRamis I think this situation was badly handled. There should have been an amendment to the tender documents (plus an 8-K) back in November when the subpoena was issued. To reveal this news today not by press release but hid away in an 8-K, and not mentioning it in the tender extension press release seems pretty shady. Obviously the market is not amused.

[HaroldRamis]

yes, extending the tender has sliced 30% off the price

who wants to wait an extra week. I sold mine at a $5 loss, no patience