The stock offering that Chelsea Therapeutics (NASDAQ:CHTP) expected to bring in $19.2 million in fresh capital has raised even more money with the sale of additional shares.
Chelsea net $22.1 million that the company will devote to commercializing a Parkinson’s disease treatment and developing additional products from its drug pipeline. Including the over allotment, Chelsea sold more than 4.9 million shares of common stock at $4.75 per share, a discount to Chelsea’s $5.12 per share closing price on Jan. 11.
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Chelsea’s lead product is droxidopa, a drug candidate under priority review by the U.S. Food and Drug Administration for Parkinson’s disease patients. Charlotte, North Carolina-based Chelsea plans to market droxidopa under the name Northera.
Northera has been developed to treat neurogenic orthostatic hypotension, or NOH. The condition is characterized by a sudden drop in blood pressure that causes light-headedness and fainting. NOH is common in Parkinson’s patients. The FDA granted the drug candidate orphan drug status in 2007. Last November, the FDA accepted Northera for priority review; an FDA decision on drug approval is targeted for late March.
Besides financing regulatory and commercialization expenses for Northera, Chelsea plans to also use proceeds from the stock offering to continue R&D on CH-4051. That compound is being studied as a rheumatoid arthritis treatment. The anti-inflammatory is currently in phase 2 clinical trials.
