Chelsea Therapeutics Closes $21.5 Million Placement of Common Stocks

Filed in archive Corporate and Industrial News , Drugs, Vaccines and Therapeutics on February 15, 2006

Chelsea Therapeutics International, Ltd. sold approximately 7.2 million shares of its common stock, raising about $21.5M in proceeds. Healthcor Management, LP was the lead investor in this financing, together with other well known healthcare investors: RA Capital Management, Great Point Partners, GMT Capital, Vivo Ventures, among others.

Chelsea's President and Chief Executive Officer Dr. Simon Pedder says that the proceeds will be used primarily to fund the Phase II clinical development of their lead compound for treatment of rheumatoid arthritis and psoriasis, CH-1504.

CH-1504 is an orally available and metabolically inert antifolate with potent anti-inflammatory and anti-tumor properties. Preclinical and clinical data to date suggests superior safety and tolerability, as well as increased potency versus Methotrexate (MTX), currently the leading antifolate treatment and standard of care for a broad range of abnormal cell proliferation diseases.

Read more about CH-1504 from Chelsea's website.