Corcept Plummeting On Negative News, Going For Strike Three

Corcept Therapeutics (CORT) is down more than 60% in pre-market trading as the company announced that its second try at a phase 3 trial for its anti-psychotic drug Corlux failed to meet its endpoint in treating Psychotic Major Depression (PMD).

Its earlier phase 3 trial had shown a similar high placebo effect observed in this study.

The company will still enroll patients in its third planned phase 3 study for Corlux, and has said its $17 million in cash and marketable securities is enough to see the study to completion.

Investors are not too happy as shares have already dropped to almost two quarters worth. This follows a similar 50% drop late August after the company released the negative news from its first phase 3 trial.

It is interesting to note that both the volume and price of shares trading hands over the last couple of days were rising, especially at end of trading on Thursday.

No doubt, investors were looking for positive news, but following today's announcement it seems Corcept is on its way to striking out.

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