Corcept Therapeutics Incorporated (NASDAQ:CORT) Q3 2023 Earnings Call Transcript

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Sean Maduck : Yes, Joon. Thank you for the question. I mean, these results have been expected given this is where we have been investing, and in the past, I’ve talked a little bit about some of the initiatives we’ve been investing and grow our business, and I thought I’d take a minute to update everybody on where those are at. Now, before I do that though, I want to highlight, I think an important fact. And that’s we have a very clear understanding now, more so than in the past, that this is a multi-billion-dollar market opportunity, and the investments that we have made to grow our business and we will continue to make are highly leveraged. And we expect that they will both capture the opportunity and then yield a higher rate of return.

So, from an initiative standpoint, which is what you’re talking about, there’s three that we previously discussed on calls, the first being the expansion of our sales force. The second is the increased effectiveness of that team, and then the third being the initiation of the catalyst study, which Bill just spoke about. Now, in terms of the sales force and the size of that team, we’re currently in the mid-60s and we are continuing to add clinical specialists throughout the country. Our target right now is about 75, but we’re unlikely to stop there, and we’re going to continue to add top sales talent as we find it. And so, part of the driver of the result is seeing that our, both our existing clinical specialists and some of our newer clinical specialists are starting to become more effective and produce more.

The second initiative really has been around that productivity driver. And what we’ve done is strengthen and streamline our training program with the goal to do what I just touched on, make our existing people more effective, and make our newer hires more effective more quickly. And again, we’re starting to see results from that effort. So, the last piece is from an investment standpoint is Catalyst. Bill just talked through the historical studies and the 10% to 20% range. But what I want you everyone listening to recognize is that Catalyst is going to be the largest prospective study that we’ve done through this group. And I believe, personally and others do as well, that it’ll be the definitive study for this patient population. And it’s really going to cement these findings from the studies that came before it.

Now, if we can replicate that 10% to 20% prevalence rate, it’s going to be an extremely meaningful driver for our business. You have to recognize that there are still many physicians out there that think the prevalence in this patient population is near zero. So, our growth today has been driven by slowly educating physicians to both screen and look for this disease. But we expect that with the addition of that data, we’ll see that continue to evolve. So, in summary, we have a lot of different initiatives at play, but we’re at the very early stages of seeing the value from those. Many of them are just getting going and we expect to see growth not just through the rest of this year, but into 2024 and beyond.

Operator: Thank you so much. And looking forward to all the catalysts.

Joseph Belanoff: Thank you, Jim. All right. Well, listen, thank you all for tuning in this quarter. Happy day after Halloween. And we look forward to seeing you in three months with really progress once again. Bye-bye.

Operator: Thank you for your participation in today’s conference. This does conclude the program. You may now disconnect.

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