Corcept Sinks After FDA Rejects Drug to Treat Hypertension (1)

Corcept Therapeutics Inc. shares fell after US regulators rejected the company’s drug to treat a form of high blood pressure.

The Food and Drug Administration “could not arrive at a favorable benefit-risk assessment” for the company’s drug, relacorilant, without more evidence of its effectiveness, the Redwood City, California-based company said in a statement Wednesday.

Corcept dropped 47% at 9:37 a.m. in New York. If that move holds, the company would shed nearly $3.5 billion of market capitalization. Its shares had gained 39% this year through Tuesday’s close.

Corcept was studying relacorilant to treat patients with hypertension who have too much ...