Wedbush Downgrades Chelsea Therapeutics (CHTP) to Neutral

Wedbush downgraded Chelsea Therapeutics (NASDAQ: CHTP) from Outperform to Neutral with a price target of $8.00.

Analyst Liana Moussatos said, "On May 8th, 2014 Chelsea announced the terms of a proposed acquisition by Lundbeck. Under the terms of the agreement Lundbeck would acquire Chelsea for $6.44/share upfront cash payment plus up to $1.50/share in contingent payments based on three contingencies including: 1) 50% of sales in excess of $100MM in 2015 up to $0.50/share, 2) 50% of sales in excess of $200MM up to $0.50/share, and 3) 50% of sales in excess of $300MM up to $0.50/share. The SC 14D9 tender offer for Lundbeck to acquire Chelsea was filed on May 23, 2014. The initial expiration date of the tender offer was 12:00 midnight ET on June 20, 2014 and a majority of common shares was tendered. As of midnight on June 20, 2014, the majority (62.5% or 49,436,852 shares) of CHTP’s common stock was tendered plus notices of guaranteed delivery for 16.1% (12,775,214) of outstanding shares."

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 $6.55 yesterday.

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