Wedbush Maintains Outperform, $9 PT on Chelsea Therapeutics Post Regultory Update on Northera

Wedbush maintains its Outperform rating and $9 price target on Chelsea Therapeutics (NASDAQ: CHTP) following new regulatory update that may cause delays on Northera.

Wedbush says, "Chelsea received a written response from the FDA concerning clinical requirements for Northera NDA resubmission. …[I]n yet another surprising move by the agency, a theoretical issue with the unblinding of the ‘306a trial results when it was being transitioned to the ongoing ‘306b study was used by the FDA to suggest that Chelsea conduct a new Phase 3 trial before resubmitting the NDA. … Due to CHTP's being oversold prematurely in our view, we maintain our OUTPERFORM rating and $9 fair value. We believe Chelsea has a chance to convince the FDA to accept a modification of the ongoing ‘306b trial design and a new trial conducted post-approval."

CHTP closed at $1.46 on Monday.

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