Corcept's stock dives after negative trial results for Corlux; Bovie partners with Medline for marketing

By Sheri Kasprzak

New York, Aug. 25 - Corcept Therapeutics, Inc.'s stock sank on Friday after the company announced that its phase 3 trials for Corlux failed.

The stock slipped by 56%, or $1.96, to close at $1.54 on Friday, but gained 7 cents in after-hours trading (Nasdaq: CORT).

According to the double-blind placebo-controlled study on Corlux to treat psychotic major depression, the study found that 30.5% of the patients receiving Corlux and 28.6% of patients receiving the placebo were responders.

"There was an unusually high placebo response rate in this trial," said Robert Roe, the company's president, in a statement. "At day 56, for example, approximately 80% of the patients in both arms of the study were responders as measured by a 50% improvement in brief psychiatric rating scale positive symptom subscale score."

"While we are of course disappointed by these results, we have two other phase 3 trials under way," said Joseph Belanoff, the company's chief executive officer, in the news release. "Next month, we expect to announce the results of study 09, which completed its enrollment of 247 patients in late May. We continue to enroll patients in study 06 and expect to announce the results of this trial by the end of this year or early next year."

One buyside market source said it is time to get out and the sooner the better.

"I don't see that they have anything coming up that is remotely promising," he said. "This is the red flag that should be going up right now. Time to jump ship, folks."

In fact, the volume of the company's stock traded Friday took off with 12,784,293 shares changing hands, compared to the average 50,927 shares.

Headquartered in Menlo Park, Calif., Corcept develops drugs to treat psychiatric and neurological diseases.

Bovie partners with Medline

Bovie Medical Corp.'s stock climbed on Friday after the company announced that it had partnered with Medline Industries, Inc. to market its products.

The company's stock gained 8 cents, or 1.06%, to close at $7.50 (Amex: BVX).

Under the terms of the alliance, the two companies will market electrosurgical equipment to hospitals.

"This alliance offers a significant value proposition to hospitals and hospital-buying groups by emphasizing the strengths of both companies," said Bovie CEO Andrew Makrides in a news release. "Hospitals will have access to Bovie's advanced electrosurgical equipment as well as Medline's high-quality accessories."

"We're excited to be working with Bovie Medical, a recognized leader in the electrosurgical market," said Jim O'Brien, Medline's anesthesia and operating room necessities division president. "This partnership further supports our mission to help improve patient care and the quality of peoples' lives by providing quality medical products with superior value to healthcare providers and end users."

Based in Melville, N.Y., Bovie manufactures electrosurgical products and Medline, based in Mundelein, Ill., distributes medical products to hospitals and extended care facilities.

Styker gets nod for hip replacement

Stryker Corp. also watched its stock creep up on Friday after announcing the U.S. Food and Drug Administration gave clearance for the company to advance its LFIT hip replacement system.

The stock gained 83 cents, or 1.77%, to close at $47.60 on Friday (NYSE: SYK).

The new implant system, the LFIT Anatomic Femoral Heads with X3 Polyethylene liners, is designed, according to a statement from Stryker, to minimize dislocation.

"Up until now, metal on metal options in larger sizes only met the needs of a subset of the total hip population," said Stryker president Mike Mogul in a statement. "We are excited that the Anatomic Heads with X3 liners will help post-operative orthopedic patients achieve their lifestyle recovery objectives."

Located in Kalamazoo, Mich., Stryker produces products used in orthopedic medicine.

Symbollon's stock dips

A day after announcing that it terminated its licensing agreement with Gardant Pharmaceuticals, Inc. to co-market its IoGen product, Symbollon Pharmaceuticals, Inc.'s stock dipped by 10%, or 15 cents, to close out the session Friday at $1.35 (OTCBB: SYMBA).

IoGen is used to treat pain associated with fibrocystic breast disease.

The company had also announced on Thursday that it settled a series of private placements for $1,366,500.

In related news, Gardant, formerly known as Bioaccelerate Holdings, Inc., announced that it signed agreements to be acquired by Switch Pharma Ltd., a pharmaceutical company in the process of going public in London.

Under the terms of the transaction, Switch Pharma Ltd. shares must be trading for at least $1.38 per share when the shares of Switch begin trading publicly.

New York-based Gardant had been producing oncology drugs.

On Friday, Gardant's stock sank by 20%, or 10 cents, to close at $0.40 (Pink Sheets: GRDP). Volume of the shares traded took off with 148,500 shares traded compared to the average 7,346.

Symbollon is a pharmaceutical company based in Framingham, Mass.

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