FDA Report Card: Chelsea Therapeutics (CHTP) jumps after surprise positive FDA panel vote

Chelsea Therapeutics International Ltd. (CHTP)’s drug to treat a condition that can cause dizziness in people with central nervous system disorders won the backing of a U.S. advisory panel.

The panel voted 7-4 today in Silver Spring, Maryland, the treatment called Northera, potentially the company’s first on the market, should be approved. The Food and Drug Administration is scheduled to decide whether to clear the drug for sale by March 28. The agency doesn’t have to follow the panel’s recommendation.

Source: Bloomberg

Trading Roadmap

CHTP jumped almost 75% in AH trading to close at $4.21. I would expect CHTP to see a quick 'slide' tomorrow (target: $3 or below) and therefore will purchase cheap put options tomorrow morning, hoping to profit from a drop in share price after the initial peak. As always, good luck to all! Feel free to follow me on Twitter (@MichaelJuan01) for more trading updates.