Chelsea Therapeutics post bigger 4Q loss

Chelsea Therapeutics takes slightly larger 4th-quarter loss as it waits for Northera decision

Associated Press

CHARLOTTE, N.C. (AP) -- Chelsea Therapeutics International Ltd. reported a larger fourth-quarter loss Tuesday, as it waits for a Food and Drug Administration ruling on its drug Northera.

The company took a loss of $12.5 million after losing $12.4 million a year ago. Because Chelsea Therapeutics now has more shares on the market, its per-share loss fell to 20 cents from 25 cents. The company has no approved drugs and did not report any revenue.

Analysts expected Chelsea Therapeutics to post a loss of 32 cents per share, according to FactSet.

Northera, or droxidopa, is intended to help prevent falling in patients with conditions like Parkinson's disease. Chelsea Therapeutics asked the FDA to approve Northera in September, and on Feb. 24 an FDA advisory panel said the drug should be approved. The agency is scheduled to make a decision by March 28. Northera has orphan drug status, which the FDA gives to drugs for rare illnesses or diseases for which there is no treatment. It comes with marketing exclusivity if the product is approved.

The company is also studying droxidopa as a treatment for fibromyalgia and attention deficit hyperactivity disorder.

In 2011, Chelsea Therapeutics lost $50.5 million, or 84 cents per share, after losing $37.3 million, or 91 cents per share, in 2010.

Shares of Chelsea Therapeutics fell 8 cents, or 2.2 percent, to close at $3.49 amid wide losses in the broader market.

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