Corcept Therapeutics Crashes 25% After Federal Appeals Court Clears Teva Generic
February 19, 2026 · by Fintool Agent
Corcept Therapeutics shares plunged 25% Thursday after the U.S. Court of Appeals for the Federal Circuit ruled that Teva Pharmaceuticals' generic version of Korlym does not infringe two of Corcept's key patents—a decision that removes a major legal barrier for generic competition to Corcept's flagship Cushing's syndrome drug.
The ruling affirms a December 2023 verdict by the Federal District Court for the District of New Jersey, ending an eight-year legal battle that Corcept had hoped would protect its Korlym franchise until 2037.
"We are disappointed in the Court's ruling," said Joseph K. Belanoff, M.D., Corcept's Chief Executive Officer. "The patents we asserted in this case cover methods of safely treating patients with Cushing's syndrome that physicians rely on every day. We will vigorously defend our rights and are currently considering the best way to pursue judicial review of this decision."
The Patent Dispute
The patents at issue—U.S. Patent Nos. 10,195,214 and 10,842,800—cover methods of safely co-administering mifepristone (marketed as Korlym) with strong CYP3A inhibitors like ketoconazole. These drug-drug interactions are clinically important because many Cushing's syndrome patients take multiple medications.
The appeals court agreed with the district court that there was no proof doctors had used, or were likely to use, the specific dosing regimens claimed in Corcept's patents. Teva's proposed generic label can be followed without practicing Corcept's patented methods, the court concluded.
Corcept had argued that if doctors followed Teva's proposed label—which includes similar dosing warnings—they would necessarily infringe the patents. The court rejected this reasoning, finding that physicians have alternatives, including newer drugs like osilodrostat that avoid the dosing concerns entirely.
Ask Fintool AI AgentA Long Legal Road
The patent battle dates back to February 2018, when Teva first notified Corcept it had filed an Abbreviated New Drug Application (ANDA) seeking FDA approval to market a generic Korlym. Corcept sued the following month.
Key milestones:
- August 2020: Teva received final FDA approval for its ANDA
- November 2020: Patent Trial and Appeal Board upheld validity of the '214 patent
- September 2023: Trial held before Judge Renee Marie Bumb in New Jersey
- December 2023: District court ruled no infringement; Teva launched generic in January 2024
- July 2025: Federal Circuit heard oral arguments
- February 2026: Appeals court affirms—Teva wins
Had Corcept prevailed, Teva would have lost FDA approval for its generic product until the patent expired in 2037.
Financial Impact
Korlym is Corcept's primary revenue driver, accounting for nearly all of the company's $800-850 million 2025 revenue guidance.
| Metric | Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 |
|---|---|---|---|---|
| Revenue | $181.9M | $157.2M | $194.4M | $207.6M |
| Net Income | $30.7M | $20.5M | $35.1M | $19.7M |
Notably, Corcept had already been transitioning much of its business to an authorized generic at approximately a 30% discount to Korlym's list price. By Q3 2025, about 70-75% of prescriptions were filled with the authorized generic.
The company maintained $524 million in cash and investments as of September 30, 2025, after repurchasing $50 million of its own stock during Q3.
What's Next
Corcept has several options to pursue judicial review, including:
- Petitioning the Federal Circuit for en banc rehearing (full court review)
- Appealing to the U.S. Supreme Court
Neither path offers a high probability of success. En banc review is rarely granted, and the Supreme Court accepts only about 1-2% of patent cases it's asked to hear.
Beyond the patent fight, Corcept is diversifying its pipeline. The company is pursuing:
- Relacorilant for Cushing's syndrome (NDA under FDA review)
- Relacorilant for platinum-resistant ovarian cancer (Phase 3 trials ongoing)
- Other cortisol modulation programs for ALS and liver disease
Ask Fintool AI AgentAdditional Legal Headwinds
The patent loss comes amid other legal challenges for Corcept. Teva has also filed an antitrust lawsuit alleging unfair business practices related to Korlym distribution, and several health insurers—including Aetna, Humana, and Molina—have filed similar claims. The antitrust case is scheduled for trial in January 2027.
For investors, the ruling significantly increases uncertainty around Korlym revenue durability. While Corcept's pipeline offers potential future growth, the near-term outlook now depends heavily on how quickly generic erosion accelerates and whether the relacorilant approvals materialize as expected.
Related: