Chelsea Therapeutics (NASDAQ:CHTP) has priced its stock offering and aims to raise $19.2 million to launch its first product and fund continued development of its drug pipeline.
Charlotte, North Carolina-based Chelsea is offering 4.3 million shares of common stock for $4.75 per share. Chelsea’s shares are currently trading at around $5 per share. The stock offering is expected to close on Jan. 11.
Chelsea’s lead drug candidate is droxidopa, which will be marketed under the name Northera. The drug candidate is aimed at treating dizziness and fainting commonly experienced by patients with Parkinson’s disease. Northera has completed phase 3 clinical trials and is currently under priority review by the U.S. Food and Drug Administration. An approval decision could come by the end of March. Chelsea earlier this week said that a meeting has been scheduled with an FDA advisory committee to discuss the drug.
Early last year, Chelsea filed a shelf registration, which gives the company the flexibility to raise up to $60 million in a stock offering. Besides Northera, the company also plans to direct proceeds toward other clinical compounds. The company recently reported positive phase 2 clinical trial results studying droxidopa as a fibromyalgia treatment. Another compound, CH-4501, is in phase 2 clinical trials as a rheumatoid arthritis treatment.
Leerink Swann LLC is acting as the sole book-running manager for the offering. Needham & Company, LLC and Roth Capital Partners, LLC are acting as the comanagers of the offering.
