UPDATE: Piper Jaffray Downgrades Corcept Therapeutics to Neutral on Korlym Outlook

Piper Jaffray reduced its rating on Corcept Therapeutics

from Overweight to Neutral and lowered its price target from $5 to $3. Piper Jaffray said, "We are downgrading CORT to Neutral from Overweight and cutting our price target to $3 from $5 following a series of conversations with endocrinologists, many of whom were investigators. Our Korlym peak sales estimates are now well below the Street as we model not only a slow ramp but also a smaller market opportunity. Our conversations gave us a better understanding of the barriers to adoption for Korlym. In particular, we note the burden placed on prescribers and patients in managing Korlym's extensive drug interactions and risk for hypokalemia." Corcept Therapeutics closed at $2.81 on Wednesday.