CED Member Chelsea Therapeutics (Nasdaq: CHTP) is expanding their fund raise to $100 in advance of a regulatory decision on what could be the company's first approved drug. This is according to a recently filed shelf registration, which shows the company has laid the groundwork to raise the funds, if needed.
Shelf filings are not uncommon in the industry--pharmaceutical companies often use them in order to raise funds quickly when they are needed. Chelsea Therapeutics submitted a $60 million shelf filing, twice using it to raise funds.
Last February, Chelsea raised $40.25 million. Last month, Chelsea raised an additional $19.2 million. Both were through stock offerings. Last month's offering enabled Chelsea to increase drug pipeline development for the commercial launch of Northera, Chelsea's first drug.
Northera is currently under review by the U.S. Food and Drug Administration. Chelsea is preparing for a second quarter launch of Northera, as the FDA approval decision has been targeted for late March.
Northera was developed to treat neurogenic orthostatic hypotension, of NOH, which is common in Parkinson's disease patients. It is characterized by a rapid drop in blood pressure that causes fainting.
Chelsea invested more than $98 million into Northera through the third quarter, according to the company's quarterly report. Chelsea expects to spend an additional $13.5 million prior to the expected March approval date.
Chelsea has a scheduled meeting with the FDA advisory committee on February 23. This is a necessary first step towards a potential March approval of Northera.