Replies to post #234832 on ORIONS Money Stocks

[AugustaFriends]

CORT $1.39 is a pharmaceutical company engaged in the discovery, development and commercialization of drugs for the treatment of severe metabolic and psychiatric disorders.

source: http://seekingalpha.com/article/996421-5-healthcare-companies-with-insider-buying-during-november-2012-part-iii?source=yahoo



Korlym, a first-generation GR-II antagonist, is the company's first FDA-approved medication. The company has a phase 3 trial under way for mifepristone for treatment of the psychotic features of psychotic depression and a portfolio of selective GR-II antagonists that block the effects of cortisol but not progesterone. It owns extensive intellectual property covering the use of GR-II antagonists, including mifepristone, in the treatment of a wide variety of metabolic and psychiatric disorders. It also holds composition of matter patents for its selective GR-II antagonists.

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Insider buys

Leonard Baker purchased 300,000 shares on November 5-7, through his funds. Baker has served as a member of the company's board since 1999. Since 1973, Baker has been a Managing Director of the General Partner of Sutter Hill Ventures, a venture capital firm.

Financials

The company reported the third-quarter financial results on October 31, with the following highlights:

Revenue $1.1 million
Net loss $8.3 million
Cash $101.6 million
Shares outstanding 99.8 million
Cash per share $1.02

Upcoming milestones

MAA filing to EMA for a once-daily oral treatment of hyperglycemia secondary to endogenous Cushing's syndrome in adult patients with glucose intolerance or diabetes mellitus type 2 who have failed surgery or are not candidates for surgery.
Phase 3 study of mifepristone for the treatment of psychotic depression. The company is expecting to conclude the enrollment in the study by the end of 2013.
My analysis

The stock is trading at its 52 -week lows. The company has a cash position of $1.02 per share, which I would expect to act like a support for the stock. There has been one insider buy transaction and there have been eight insider sell transactions this year. There are four analyst buy ratings, one neutral rating and three sell ratings with an average price target of $6.26. The company has two upcoming milestones. The MAA filing could happen anytime. I have a neutral bias for the stock currently.