Deutsche Bank has published a research report on Chelsea Therapeutics (NASDAQ: CHTP [6]) and has downgraded the company from Buy to Hold while awaiting clearer FDA discussions on Morthera.

In the report, Deutsche Bank writes, "The company did NOT collect fully supine blood pressure in clinical trials. They are not doing so in their 306b trial, the trial they believe could help them get approved. We view lack of better safety in label as a key risk to market uptake, given generic midodrine remains on the market at a much cheaper price. We need greater clarity on strategy for proving Morthera carries less risk of severe hypertension as well as the feedback from the FDA to get comfortable that Northera will not carry a black box."

Deutsche Bank has lowered the price target from $9 to $4 on Chelsea Therapeutics, which closed yesterday at $3.67.

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