MENLO PARK, CA -- (MARKET WIRE) -- May 9, 2007 --Corcept Therapeutics Incorporated (
NASDAQ:
CORT) today reported financial results for the first quarter ended March
31, 2007.
For the first quarter of 2007, Corcept reported a net loss of $2.5 million,
or $0.10 per share, compared to a net loss of $6.7 million, or $0.30 per
share, for the first quarter of 2006.
On March 30, 2007, Corcept completed a private placement of 9,000,000
shares of its common stock at a price of $1.00 per share. The investors
included Paperboy Ventures LLC, Sutter Hill Ventures and Alta Partners,
LLP, venture capital firms that are significant shareholders in Corcept,
members of the Corcept Board of Directors and other accredited investors.
The proceeds of the financing will be used to complete the investigation of
previous clinical trials, to prepare for the next Phase 3 clinical trial
evaluating CORLUX® for the treatment of the psychotic features of
psychotic major depression (PMD), to continue development of our new
chemical entities and for working capital.
Joseph K. Belanoff, M.D., Corcept's Chief Executive Officer, commenting on
the company's clinical plan, said, "We believe that the confirmation of a
drug concentration threshold for efficacy as well as other observations
from the company's three recently completed clinical trials will serve as a
strong basis for our next Phase 3 study. In the upcoming trial, planned to
begin enrollment later in 2007, we expect to use a dose level of 1200 mg
once per day for seven days. We believe that this change in dose, as well
as other modifications to the protocol, should allow us to demonstrate the
efficacy of CORLUX in the treatment of the psychotic features of PMD."
As of March 31, 2007, Corcept had cash, cash equivalents and marketable
securities of $14.7 million. The total cash used in the company's operating
activities for the first three months of 2007 was $3.6 million.
Commenting on Corcept's financial guidance for 2007, Anne LeDoux, Corcept's
Vice President and Controller, stated, "Based on the currently planned
timeline of our clinical development program and our discovery research
activities, we expect that cash used in operating activities in 2007 will
be between $10 million and $15 million. At that pace, our current funds
will enable us to continue operations through the first quarter of 2008; we
will need to raise additional capital in order to fund our operations
beyond that point."
Total operating expenses were $2.7 million for the first quarter of 2007
compared to $7.1 million in the same period in 2006. In the first quarter
of 2007, research and development expenses decreased to $1.6 million from
$5.8 million in the first quarter of 2006. This decrease was primarily
related to the completion in late 2006 of the majority of activities
regarding our three Phase 3 trials evaluating CORLUX for treating PMD.
Top-line results for two of these trials were reported during 2006. The
top-line results for the third Phase 3 trial, Study 06, were announced in a
separate press release on March 19, 2007.
General and administrative expenses decreased to $1.1 million for the three
months ended March 31, 2007, from $1.3 million for the three months ended
March 31, 2006 due to decreases in legal and professional fees, staffing
and stock based compensation.
During the quarters ended March 31, 2007 and 2006, the company recognized
approximately $108,000 and $121,000, respectively, of revenue from the
collaboration with Eli Lilly and Company to conduct a proof-of-concept
clinical study evaluating the ability of CORLUX, a GR-II antagonist, to
mitigate weight gain associated with the use of olanzapine.
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 bipolar I disorder. PMD 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
metabolic diseases. Corcept's lead product, CORLUX, is currently in Phase
3 clinical trials for the treatment of the psychotic features of PMD. 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 seen in PMD. The
Company is also conducting a proof-of-concept study evaluating the ability
of CORLUX to mitigate weight gain associated with the use of olanzapine.
For additional information about the company, please visit
www.corcept.com.
Statements made in this news release, other than statements of historical
fact, are forward-looking statements, including, for example, statements
relating to Corcept's clinical development programs, its spending plans and
milestone dates for additional financing. Forward-looking statements are
subject to a number of known and unknown risks and uncertainties that might
cause actual results to differ materially from those expressed or implied
by such statements. For example, there can be no assurances with respect
to the commencement, cost, rate of spending, completion or success of
clinical trials; there can be no assurance with respect to the consummation
of financing activities; financial projections may not be accurate; there
can be no assurances that the investigations for the Phase 3 clinical
trials will be completed, or that that Corcept will pursue further
activities with respect to clinical development of CORLUX. These and other
risk factors are set forth in the Company's SEC filings, all of which are
available from our website (
www.corcept.com) or from the SEC's website
(
www.sec.gov). We disclaim any intention or duty to update any
forward-looking statement made in this news release.
CORCEPT THERAPEUTICS INCORPORATED
CONDENSED BALANCE SHEETS
(in thousands)
March 31, December 31,
2007 2006
------------ ------------
(Unaudited) (Note)
ASSETS:
Current assets:
Cash, cash equivalents and short-term
investments $ 14,744 $ 9,456
Other current assets 368 343
------------ ------------
Total current assets 15,112 9,799
Other assets 96 103
------------ ------------
Total assets $ 15,208 $ 9,902
============ ============
LIABILITIES AND STOCKHOLDERS EQUITY:
Current liabilities:
Accounts payable $ 809 $ 916
Other current liabilities 1,386 2,597
------------ ------------
Total current liabilities 2,195 3,513
Capital lease obligation, long-term portion 26 29
------------ ------------
Total liabilities 2,221 3,542
Total stockholders equity 12,987 6,360
------------ ------------
Total liabilities and stockholders
equity $ 15,208 $ 9,902
============ ============
Note: Derived from audited financial statements at that date.
CORCEPT THERAPEUTICS INCORPORATED
STATEMENT OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
For the Three Months
Ended March 31,
------------------------
2007 2006
Collaboration revenue $ 108 $ 121
----------- -----------
Operating expenses:
Research and development* 1,601 5,784
General and administrative* 1,135 1,316
----------- -----------
Total operating expenses 2,736 7,100
----------- -----------
Loss from operations (2,628) (6,979)
----------- -----------
Interest and other income, net 96 252
Other expense (3) (3)
----------- -----------
Net loss $ (2,535) $ (6,730)
=========== ===========
Basic and diluted net loss per share $ (0.10) $ (0.30)
=========== ===========
Shares used in computing basic and diluted net
loss per share 25,932 22,658
=========== ===========
*Includes non-cash stock-based compensation of
the following:
Research and development $ 29 $ 193
General and administrative 221 280
----------- -----------
Total non-cash stock-based
compensation $ 250 $ 473
=========== ===========
Contact Information: CONTACT:
Andrew Galligan
Investor Relations
Corcept Therapeutics
650-327-3270
Email Contact
www.corcept.com