CHTP- Good News. Now they have enough cash until 2014
Chelsea Therapeutics International, Ltd. has received a written waiver from Dainippon Sumitomo Pharma Co., Ltd., or DSP, wherein DSP has released Chelsea Therapeutics, Inc. from its requirement to purchase a portion of the active pharmaceutical ingredient of droxidopa previously produced for the planned commercial launch of droxidopa, as required in the Supply Agreement executed on May 26, 2006 between Chelsea and DSP. Chelsea most recently disclosed this purchase commitment in its Quarterly Report on Form 10-Q for the quarter ended June 30, 2012 with a corresponding purchase price of $5.7 million, using exchange rates as of June 30, 2012.
As a result of this waiver from DSP, as well as Chelsea's ongoing review of its operations, Chelsea is changing guidance on its cash runway, estimating that existing resources are now extended further to cover operations into the second quarter of 2014. While details and timing for a future clinical trial for Northera are yet to be determined, this guidance assumes a new Phase III trial would commence dosing in the third quarter of 2013 with significant spending expected to begin in the second quarter of 2013.
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