A report that suggested impending approval of a drug from Chelsea Therapeutics International (CHTP) sent CHTP stock vaulting more than 110% in Wednesday morning trading.
The U.S. Food and Drug Administration (FDA) declined to approve Northera, CHTP’s blood pressure treatment, in 2012. CHTP resubmitted the drug in September. A research note from analysts at Wedbush indicated that an FDA advisory panel recently voted 16 to 1 to support the drug, the Wall Street Journal noted.
The advisory panel’s vote is not binding on the FDA, which had previously found technical problems with the drug’s data. However, Wedbush predicted that Northera had a 65% chance of receiving FDA approval by Feb. 15.
Between March and the end of December, CHTP stock had rise more than 160%. CHTP stock traded over $4 a share on Wednesday morning.