(Reuters) – A U.S. judge ruled in favor of Israeli company Teva Pharmaceutical Industries in a patent infringement lawsuit filed by Corcept Therapeutics, sparking a frenzied sell-off of the California-based drug developer’s shares.
Corcept shares fell nearly 38% after the bell.
The lawsuit related to Korlym, Corcept’s drug to treat Cushing’s syndrome, which creates excess of the hormone cortisol and causes, among other things, high blood sugar.
Teva is looking to sell a generic version of Corcept’s Korlym drug. Its application was approved by the U.S. Food and Drug Administration in 2020, but it has yet to launch its product.
Corcept had failed to demonstrate the likelihood of direct infringement of its patent by Teva, a U.S. district judge ruled.
The companies did not immediately respond to Reuters’ requests for comment.
(Reporting by Niket Nishant in Bangalore; editing by Shounak Dasgupta, Pooja Desai and Sonali Paul)