Thursday, March 13, 2014
New Price Target - Chelsea Therapeutics
Chelsea (CHTP) ended the day up almost 14% after Wedbush put a $8 price target on the small biotech a month after it received it's first FDA approval for the drug Northera which treats symptomatic neurogenic orthostatic hypotension (it's a condition of dizziness of people with diseases such as Parkinson). Wedbush believes that there is a strong chance of the company securing a partner which has been my bull thesis on the stock as well. One thing that has me a bit worried about it's commercial potential is my recent conversation with a friend that runs a non-profit that supports folks with Parkinson's. He had not heard of Northera which surprised me if the condition is prevalent in that population of patients as some of Chelsea's numbers have indicated. He was very aware of the upcoming results of Abbvie's LCIG in Parkinson's. Just some food for thought.