FDA Plays

[jrbritt]

(CORT) - Insider's hold 59% of shares and Institutions hold 20%. Not only that, they are accumulating more - huge direct purchase of nearly $3,000,000 on Jan 21 by a Director - insider holdings were up 30% - 6,200,000 shares last QTR.

Their drug is for Cushing's Syndrome which is not very common - so they were granted orphan drug status. The FDA said they needed to show a 20% response rate in trials. They had two different groups - one showed 60% and the other 43%. Currently no drugs on the market to compete with but Novartis has one in their pipeline as well.

They expect to file NDA this quarter. You hear a lot about takeovers and acquisitions but I personally have never been in a stock that actually had that happen. It is interesting how much the insider's are accumulating and the fact that CORT doesn't have much else going for them besides this drug.

Also recently sold some shares at $3.90 so plenty of cash on hand for the time being - which takes away the fear of another surprise offering anytime soon.

I am planning on holding at least until they file NDA which hopefully will be by the end of March. The chart looks good. It did break through to 50-day-MA which concerned me but it quickly fought back, especially after today. Looks like it may continue its uptrend. I don't like targets really but it looks like it should hit at least $4.50 range.

On another note - how about KV-A - as many bio stocks as I follow I never seem to get the ones that have that kind of gain =/

Have a good weekend all.

good article:
http://www.fool.com/investing/general/2010/12/23/corcept-may-have-hit-pay-dirt.aspx