UPDATE: Oppenheimer Downgrades Corcept Therapeutics to Perform on Disappointing Sales

Oppenheimer reduced its rating on Corcept Therapeutics

from Outperform to Market Perform. Oppenheimer commented, "On 10/31 Corcept reported 3Q12 results and provided an update on the commercial launch of Korlym, its European strategy and clinical development initiatives. Revenues in 3Q were $1.1M, significantly below our estimates of $3M. It is not clear to us why the sales ramp is so slow, and our back-of-the-envelope calculations suggest that the majority of current patients are former clinical trial participants. Based on Korlym's disappointing launch, we believe that our prior estimates for this drug were incorrect. At this time, it is not clear when Corcept may become cashflow break-even." Corcept Therapeutics closed at $2.24 on Thursday.