By Colin Kellaher

Shares of Corcept Therapeutics tumbled more than 30% in premarket trading Tuesday after the pharmaceutical company suffered a setback in its patent-infringement litigation against generic drugmaker Teva Pharmaceuticals.

A U.S. District Court judge in New Jersey late Friday ruled that Teva's planned generic version of Corcept's Korlym drug for Cushing's syndrome didn't infringe Corcept's patents.

Corcept, based in Menlo Park, Calif., on Tuesday said it plans to appeal the ruling, which it said is "based on legal and factual errors."

Corcept filed patent-infringement litigation against Teva in 2018, shortly after Teva sought U.S. Food and Drug Administration approval for its generic version of Korlym.

The FDA approved Teva's generic version in 2020, and Corcept has said in previous filings with the Securities and Exchange Commission that Teva can opt to begin marketing its generic product at any time, notwithstanding the ongoing litigation.

Corcept shares, which closed Friday at $32.48, were recently down nearly 33% to $21.90 in premarket trading.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

January 02, 2024 08:35 ET (13:35 GMT)

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