The stock price of Chelsea Therapeutics International Ltd. (NASDAQ:CHTP) is soaring by more than 14% to $5.95 per share at the time of this writing around 1:56 in the afternoon in New York.
Attractive acquisition target
The upward movement of the stock was probably driven by the opinion of analysts at Wedbush that a partnership or acquisition of Chelsea Therapeutics International Ltd. (NASDAQ:CHTP) was given approval for Northera by the Food and Drug Administration (FDA).
The research firm believed that the company is an attractive target for multiple pharmaceutical companies. Wedbush has an Outperform rating with an $8 price target for the shares of Chelsea Therapeutics International Ltd. (NASDAQ:CHTP).
FDA approves Northera
Northera is the only therapy approved by FDA to treat orthostatic dizziness, lightheadedness, or the “feeling that you are about to black out” in adults with symptomatic neurogenic orthostatic hypotension caused by primary autonomic failure, DBH deficiency, and non-diabetic autonomic neuropathy.
In a statement, Joseph G. Oliveto, president and CEO of Chelsea Therapeutics International Ltd. (NASDAQ:CHTP) said, “FDA approval of Northera (TM) (droxidopa) this February for symptomatic neurogenic orthostatic hypotension is Chelsea Therapeutics’ most important milestone to date… Northera is the first new treatment option approved for this indication in nearly two decades, representing a significant market opportunity. We continue to pursue a dual path of actively assessing the company’s strategic alternatives and preparing for the commercial launch of Northera.”
Chelsea Therapeutics International Ltd. (NASDAQ:CHTP) plans to start selling Northera in the second half of 2013. The company also intends to expand to pursue a label expansion for the Northera and to test it for the treatment of other norepinephrine-related conditions and diseases. The therapy has orphan drug designation of marketing exclusivity in the United States for seven year and in the European Union for ten years.
Chelsea Therapeutics Financial performance
Chelsea Therapeutics International Ltd. (NASDAQ:CHTP) posted a net loss $5.3 million of $0.07 per share for the fourth quarter of 2013, higher than its loss of $0.03 per share in the same period a year ago. The company said its Research and development (R&D) expenses increased to $3.9 million from $0.9 million in the year-ago quarter. It had $45.3 million in cash and cash equivalents by the end of the year.