Monday, January 20, 2014

The Motley Fool: The Chelsea Therapeutics International Drama Has At Least One More Act

Even by the liberal standards of biotech, Chelsea Therapeutics (NASDAQ: CHTP  ) has given its investors a wild ride as the stock has bounced around on exceptionally mixed data on lead drug Northera. Investors have already faced both the ecstasy of FDA panel approval, and the agony of FDA rejection. Now the shares are rocketing again, jumping almost 100% on Wednesday in the wake of a convincing panel vote in favor of Northera despite a decidedly negative FDA stance in its pre-meeting briefing.

What happens next is anybody's guess. The FDA approves almost 90% of the drugs that are recommended by its panels, and the 16-1 vote on Tuesday would normally be seen as a strong endorsement. Chelsea's data package is one of the messiest I've seen in a long time, but orthostatic hypotension is a significantly under-served market and it doesn't take particularly bold assumptions to derive an appealing target price.

Please read more here:
The Chelsea Therapeutics International Drama Has At Least One More Act

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