Corcept Stock Rally On Weight Loss News Continues
by Hisham S. Ayoub, DMD
BioHealth Investor
Shares of Corcept Therapeutics, Inc. (CORT) continued their strong upward movement on Monday gaining more than 20% by day's end.
The stock has now gained more than 70% in three days since the company announced positive results from its proof of concept study of lower weight gain through the combination of olanzapine plus CORLUX.
This prompted Punk, Ziegel & Co. to raise its outlook on Corcept stock from "market perform" to "accumulate".
What was really impressive about this three day rally is how strong the volume has been, signalling that large institutional investors might be involved. Volume over the last three days, Thursday, Friday and Monday, was 538,400 / 891,300 / 822,967 respectively, while the 3-month daily average volume is a little over 70,000 according to Yahoo!Finance.
This wild action in Corcept stock can be mainly be attributed to the relatively tiny market cap of just $90 million.
Investors must be careful here, there still is a long way to go before Corcept's study adds anything to its bottom line, if ever.
RELATED READING:
- Sanofi Should Blame Itself for FDA Panel's Rejection of Acomplia
Dr.Ayoub is the founding editor of BioHealth Investor
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BioHealth Investor
Shares of Corcept Therapeutics, Inc. (CORT) continued their strong upward movement on Monday gaining more than 20% by day's end. The stock has now gained more than 70% in three days since the company announced positive results from its proof of concept study of lower weight gain through the combination of olanzapine plus CORLUX.
This prompted Punk, Ziegel & Co. to raise its outlook on Corcept stock from "market perform" to "accumulate".
What was really impressive about this three day rally is how strong the volume has been, signalling that large institutional investors might be involved. Volume over the last three days, Thursday, Friday and Monday, was 538,400 / 891,300 / 822,967 respectively, while the 3-month daily average volume is a little over 70,000 according to Yahoo!Finance. This wild action in Corcept stock can be mainly be attributed to the relatively tiny market cap of just $90 million.
Investors must be careful here, there still is a long way to go before Corcept's study adds anything to its bottom line, if ever.
RELATED READING:
- Sanofi Should Blame Itself for FDA Panel's Rejection of Acomplia
Dr.Ayoub is the founding editor of BioHealth Investor
________________
posted by Nico at
6:06 PM
2 Comments:
a) This isn't about weight loss - it is about prevention of the weight gain that is a virtually guaranteed side effect of the most common class of anti-psychotics. And is one of the two or three biggest issues for anti-psychotic drugs.
b) This trial was in humans - so it doesn't really qualify as pre-clinical. OTOH Corlux will never be used in this indication. This trial was really a proof of concept.
thanks for pointing out these glaring errors. I stand corrected.
I have made the necessary changes to the article.
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