Why Chelsea Therapeutics International Ltd. Skyrocketed

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of biotechnology company Chelsea Therapeutics International Ltd. soared 30% today after its symptomatic neurogenic orthostatic hypotension drug, Northera, won U.S. approval from the Food and Drug Administration.

So what: The disorder -- often called NOH -- affects an estimated 80,000 to 150,000 individuals in the United States, so today's news naturally represents big opportunity for the currently unprofitable Chelsea. In fact, Northera is the first and only drug approved to specifically address the symptoms of NOH, such as orthostatic dizziness and lightheadedness, giving analysts plenty of good vibes over Chelsea's growth going forward.


Now what: The FDA approved Northera on "accelerated" basis, allowing Chelsea to deliver the drug to patients while conducting additional confirmatory studies. "The approval of NORTHERA is an extraordinary achievement, one for which I thank patients and their families, investigators and the medical community, our partner Dainippon Sumitomo, and our employees," said Joseph Oliveto, Chelsea president and CEO. "We will now turn our efforts toward delivering NORTHERA to patients with NOH in the United States, an important goal we expect to achieve in the second half of the year." So, while Chelsea might still be too speculative for average investors, today's ultrapositive news, coupled with the fact that the stock remains off more than 10% from its 52-week highs, make it an interesting pick for biotech-savvy Fools.

More reliable ways to build wealth
One of the dirty secrets that few finance professionals will openly admit is the fact that dividend stocks as a group handily outperform their non-dividend paying brethren. The reasons for this are too numerous to list here, but you can rest assured that it's true. However, knowing this is only half the battle. The other half is identifying which dividend stocks in particular are the best. With this in mind, our top analysts put together a free list of nine high-yielding stocks that should be in every income investor's portfolio. To learn the identity of these stocks instantly and for free, all you have to do is click here now.

The article Why Chelsea Therapeutics International Ltd. Skyrocketed originally appeared on Fool.com.

Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


Increase your money and finance knowledge from home

Investment Strategies

What's your investing game plan?

View Course »

Basics Of The Stock Market

Stock Market 101 - everything you need to know but were afraid to ask!

View Course »

Add a Comment

*0 / 3000 Character Maximum