Success after failure

Chelsea Therapeutics (NASDAQ:CHTP) was rewarded last week for learning from an initial failure with lead compound Northera droxidopa. The company gained $0.67 (13%) to $5.73 on Tuesday after reporting Northera met the primary endpoint in a Phase III trial to treat neurogenic orthostatic hypotension.

A year ago, the company lost more than half its market cap after Northera failed its first Phase III trial (Study 302). The stock shed $4.29 (61%) to close at $2.73 on Sept. 24, 2009, the day the results were announced (see BioCentury, Oct. 5, 2009)...