Chelsea Therapeutics (CHTP) Partnership or Acquisition on Horizon - Wedbush

March 13, 2014 1:40 PM EDT Send to a Friend
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Price: $6.52 --0%

Rating Summary:
    1 Buy, 5 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 24 | Down: 21 | New: 17
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Wedbush maintained an Outperform rating on Chelsea Therapeutics (NASDAQ: CHTP) with a price target of $8.00. Analyst Liana Moussatos speculated that a partnership or acquisition of Chelsea Therapeutics could be on the horizon.

"With Northera's recent approval, we reiterate our speculation that a partnership or acquisition of CHTP could be on the horizon. While we anticipate that the company will explore all strategic alternatives including a licensing deal or being acquired, we also expect them to prepare to launch Northera on their own. We estimate the company could launch Northera sometime in H2:14 following the build-out of a commercial infrastructure and manufacturing scale-up. Although Management has consistently reiterated their dual strategy to pursue commercialization of Northera on their own vs. strategic alternatives for either a commercial partner or acquisition, we believe the lack of conference calls suggests the latter is most likely," said Moussatos.

"We understand that the company is developing commercialization plans for Northera in the US; however, given that NOH is a rare disease (approximately 80,000 – 150,000 symptomatic NOH patients in the US) and is now approved, we believe it is attractive to multiple pharmaceutical companies looking to add to their salespeople’s’ bags. We conservatively project about $430 million in worldwide peak sales potential," she added.

For an analyst ratings summary and ratings history on Chelsea Therapeutics click here. For more ratings news on Chelsea Therapeutics click here.

Shares of Chelsea Therapeutics closed at $5.22 yesterday.


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