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Xeris Stock Soars on Rival Drug Rejection
2 Jan
Summary
- FDA denied Corcept Therapeutics' relacorilant for Cushing's syndrome.
- Xeris Biopharma's Recorlev will face no immediate competition.
- Analyst predicts a potential tripling of the Cushing's market.
Xeris Biopharma experienced a significant stock price increase, rising more than 7%, after news of a competitor's setback emerged. Corcept Therapeutics announced that the U.S. Food and Drug Administration (FDA) had not approved its drug, relacorilant, intended for hypertension related to hypercortisolism, commonly known as Cushing's syndrome.
The FDA's complete response letter indicated that insufficient evidence of the drug's effectiveness was the primary reason for the denial. This decision provides immediate relief for Xeris Biopharma, whose own medication, Recorlev, received FDA approval for Cushing's syndrome in late 2021. Consequently, Recorlev will not face an immediate new competitor.
An analyst from Jefferies maintained a buy recommendation for Xeris, noting that the addressable market for Cushing's disease is expected to grow substantially. The analyst estimates the current $1 billion U.S. market could potentially triple by 2030, benefiting Xeris more significantly due to the competitor's drug failing to gain approval.
