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Analysts add to Chelsea feel-good factor

  • Deutsche Bank raises its price target for Chelsea Therapeutics (CHTP) to $8 following the FDA's approval of the company's Northera treatment. Needham ups its target to $10.
  • Shares are surging 33% to $6.61.
  • The drug is indicated for preventing sudden drops in blood pressure, which can lead to dizziness and fainting, in patients with neurogenic orthostatic hypotension, a disease that is associated with neurological disorders such as Parkinson's.
  • Wedbush analyst Liana Moussatos expects the company to explore partnerships or to even be acquired, although it could launch Northera on its own. Moussatos estimates that the treatment could generate $430M in global peak sales.
  • The FDA authorized Northera on an "accelerated basis", which means patients will get access to it while the company carries out a post-market study of 1,400 people to see whether Northera has a durable effect - efficacy beyond two weeks has yet to be demonstrated.
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Comments (6)
  • chandroth44
    , contributor
    Comments (4) | Send Message
     
    " Most people who were commenting here seems to have no idea about the condition for which this drug is approved! I would like to clarify .
    1-The idea that "orthostatic hypotension" is very rare is totally wrong. It is very common especially when you are dealing with an aging population. common conditions causing this situation are many. a)diabetis mellitus and diabetic neuropathy b)Parkinson disease and other extrapyramidal neurologic degenerative conditions c) Dementia of all types d)Autonomic neuropathies of many types where the sympathetic nervous system of the lower part of the body is destroyed including idiopathic (shey grader syndrome.)
    2-The current treatment is very crude.We give a drug called Fludrocortisone 0.1mg or more to artficially retain sodium and water to increase blood volume hoping that that will prevent sudden drop in BP.Unfortunately most patients in this category also have congestive heart failure and diabetis and both conditions are made worse by the drug. The other drug Midodrine ,I have used many years and is almost like a placebo and useless.
    3-The comment about the black box warning is irrelevant. Any drug which works in this condition is supposed to elevate the systolic BP and it is the duty of the physician to titrate the dose to bring the supine BP to an acceptable level so that standing BP does not fall below a level to cause syncope.
    5-I believe if the drug is effective it could become a blockbuster drug.
    6-In my own practice there are at least 20 to 30 patients I may start as soon as the drug is available.
    7-One of the most common cause of hip fracture and other fractures in older population is syncope due to orthostatic hypotension!
    8-Lastly the drug is a dopaminergic drug and may be helpful in stimulating the cardiovascular system.
    9)The assumption that it is good for only very limited patient population is misleading.There are millions of patients eligible for this drug.People are mistaking a rare condition called shey grader syndrome.But that will not be the main indication.
    19 Feb 2014, 11:37 AM Reply Like
  • chandroth44
    , contributor
    Comments (4) | Send Message
     
    I am a practising cardiologist.I come across lots of patients with orthostatic hypotension.
    19 Feb 2014, 11:40 AM Reply Like
  • GreenGrowthGeek
    , contributor
    Comments (1312) | Send Message
     
    Good points chandroth. While Northera is not a panacea, it will be helpful for patients until a more effective treatment is discovered and that will take at least 5 years to get through the approval process unless another company has something promising already in Phase 2. I do not think that this is the case.
    19 Feb 2014, 05:47 PM Reply Like
  • panchosfc
    , contributor
    Comments (40) | Send Message
     
    Thank you for those informations!
    19 Feb 2014, 11:09 PM Reply Like
  • berniespear
    , contributor
    Comments (251) | Send Message
     
    My mom will love this drug, seems like it would help her. Good news.
    20 Feb 2014, 03:23 AM Reply Like
  • hneumann
    , contributor
    Comments (632) | Send Message
     
    Valid points, but the reason why the stock went down yesterday is because the FDA wants confirmation that the effects last for more than two weeks. That investigation is going to cost Chelsea a lot of money, which obviously spooked investors. Besides, what is looming is that the FDA changes opinion after a few years.
    20 Feb 2014, 06:57 PM Reply Like
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