Boston, MA 04/28/2014 (wallstreetpr) – Chelsea Therapeutics International Ltd. (NASDAQ:CHTP) has carried out a public offering of 7.67 million shares of its common stock. This includes 1,000,000 shares of common stock that were issued post exercise in whole of the over allotment option granted to the underwriters. The company plans to grant a 30 day option to the underwriters to purchase up to an incremental 15% of shares of common stock offered via the public offering to cover any over allotments.
New development
Chelsea Therapeutics International Ltd. (NASDAQ:CHTP), Ltd has come up with a new drug, Northera, which cures an uncommon form of low blood pressure associated with nervous disorders like Parkinson’s disease. This drug has been granted approval by U.S. Food and Drug Administration. This regulatory approval has suddenly led to a spurt in share prices of this stock, much to the relief of the company’s shareholders.
NORTHERA is the one and only drug approved by the FDA that shows symptomatic benefit in patients with this rare form of hypotension.
The company has said that the initial analysis of its exploratory Phase II trial of CH-4051 in patients suffering from rheumatoid arthritis who experience an insufficient response to methotrexate treatment indicates that CH-4051 did not show higher efficacy to methotrexate in the dose administered. This drug is a non-metabolized antifolate.
Legal hassles
Branham Law, LLP, had launched an investigation into the actions of the executives and directors of Chelsea Therapeutics International Ltd. (NASDAQ:CHTP) for possible breach of shareholder protection laws and securities. The investigation focuses on whether the company and its executives violated federal securities laws by circulating false and misleading information about the efficacy of Northera and also failing to disclose the possibility of approval of Northera by U.S.FDA.
Faruqi & Faruqi, LLP, securities legal firm was investigating potential security fraud at Chelsea Therapeutics International Ltd. (NASDAQ:CHTP). The investigation focuses on whether the company had violated federal laws by reporting positive results from Northera’s clinical trials and making claims regarding the efficacy of the drug that were materially incorrect and misleading.
