CHTP Rally Will Be Short-Lived Without Northera News Next Week to Support

On news of an upcoming conference presentation, Chelsea Therapeutics (NASDAQ:CHTP) is up 16% in afternoon trading at triple its 30-day average volume. Chelsea will present much-anticipated data from its Northera development program at the Rodman & Renshaw Global Healthcare Investment Conference on the 10^th. Northera’s New Drug Application last September was met with a Complete Response Letter from the FDA in March of 2012, requiring a further trial proving efficacy before approval. The CRL came after a FDA advisory panel backed the drug by a vote of 7 – 4. The drug is a treatment for symptomatic neurogenic orthostatic hypotension and is Chelsea’s lead candidate for commercialization. Shares seem to have found support around $1.00 this month after Chelsea reported that its most recent 306b trial would probably not provide enough data to support approval from the FDA, although the company remains optimistic. Today’s gains are largely a result of momentum, but if clinical data on Northera next week show any signs of life left in the product, expect a rally regardless of the realistic long-term prospects for Northera.