Corcept Therapeutics Announces First Quarter 2004 Results
2004-05-26 16:22 (New York)
MENLO PARK, Calif., May 26 /PRNewswire-FirstCall/ -- Corcept Therapeutics
Incorporated (Nasdaq: CORT) today reported financial results for the first
quarter ended March 31, 2004.
For the first quarter of 2004, Corcept reported a net loss of $2.6
million, or $0.28 per share compared to a net loss of $2.8 million, or $0.36
per share for the first quarter of 2003.
Total operating expenses were $2.6 million for the first quarter of 2004
compared to total operating expenses of $2.9 million in the first quarter of
2003. In the first quarter of 2004, research and development expenses
decreased to $1.6 million from $3.2 million in the first quarter of 2003. This
decrease was primarily due to decreases in clinical trial expenses because of
the completion of two double-blind trials for the treatment of psychotic major
depression (PMD) in 2003.
General and administrative expenses increased $1.3 million to $1.0 million
for the first quarter of 2004, from a net credit of $319,000 for the same
period in 2003. In the first quarter of 2003, there was a one time credit of
non-cash stock-based compensation of $1.4 million due to personnel changes.
As of March 31, 2004, Corcept had cash, cash equivalents and marketable
securities of $9.0 million. The total cash used in the company's operating
activities for the first quarter of 2004 was $2.2 million. Subsequent to the
end of the first quarter, Corcept completed its initial public offering, in
which the company sold 4,500,000 shares of common stock at $12 per share. The
net proceeds of this offering were $49.0 million.
"During the first quarter, we made significant progress toward our goal of
providing a much needed treatment for patients affected by psychotic major
depression, or PMD," said Dr. Joseph Belanoff, Corcept's chief executive
officer. "We believe that the funds raised in our initial public offering
combined with the cash already on hand will enable us to complete the clinical
development of CORLUX(TM) for the treatment of PMD. We plan to commence
pivotal Phase III trials designed to replicate the statistically significant
results of the double-blind clinical study we completed last December. Because
of the serious nature of PMD and the lack of approved drugs for the disorder,
the FDA has granted a Fast Track designation for CORLUX for the treatment of
the psychotic features of PMD."
Commenting on Corcept's financial guidance for the remainder of 2004, Fred
Kurland, Corcept's chief financial officer, stated, "After we commence our
pivotal clinical trials, we anticipate our cash use will increase beyond the
pace of the first quarter. We anticipate a net cash burn of between $15
million and $20 million in 2004."
About Psychotic Major Depression
PMD is a serious psychiatric disorder that affects approximately three
million people annually in the United States. It is more prevalent than
either schizophrenia or manic depressive illness. The disorder is
characterized by severe depression accompanied by delusions, hallucinations or
both. People with PMD 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 PMD.
About Corcept Therapeutics Incorporated
Corcept Therapeutics Incorporated is a pharmaceutical company engaged in
the development of drugs for the treatment of severe psychiatric and
neurological diseases. Corcept's lead product, CORLUX(TM), is currently in
Phase III clinical trials for the treatment of the psychotic features of
psychotic major depression. The drug is administered orally to PMD patients
once per day for seven days. CORLUX, a potent GR-II antagonist, appears to
mitigate the effects of the elevated and abnormal release patterns of
cortisol. Corcept is also conducting a clinical trial to evaluate the safety
and efficacy of our product in improving cognition in patients with mild to
moderate Alzheimer's disease. For additional information about the company,
please visit www.corcept.com. |
