Analysts add to Chelsea feel-good factor

|About: Chelsea Therapeutics Inte... (CHTP)|By:, SA News Editor

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.