Shares of Corcept Therapeutics took a significant hit, dropping over 30%, following a setback in their ongoing patent-infringement litigation against generic drugmaker Teva Pharmaceuticals.
The ruling came from a U.S. District Court judge in New Jersey, who declared that Teva’s planned generic version of Corcept’s Korlym drug for Cushing’s syndrome did not infringe upon Corcept’s patents.
Corcept, headquartered in Menlo Park, Calif., has expressed its intention to appeal the ruling, citing “legal and factual errors” in the decision.
The legal battle between Corcept and Teva began in 2018 when Corcept filed patent-infringement litigation shortly after Teva sought approval from the U.S. Food and Drug Administration for its generic version of Korlym.
Although the FDA approved Teva’s generic version in 2020, Corcept has acknowledged in previous filings with the Securities and Exchange Commission that Teva can proceed with marketing its generic product at any time, regardless of the ongoing litigation.
As a result of the unfavorable ruling, shares of Corcept plummeted to $21.90 in premarket trading, a decline of almost 33% from Friday’s closing price of $32.48.