Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, pharmaceutical company Chelsea Therapeutics
With that in mind, let's take a closer look at Chelsea's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Charlotte, N.C. (2002)|
|Market Cap||$215.9 million|
|Trailing-12-Month EBITDA||($50.5 million)|
|Management||CEO Dr. Simon Pedder
CFO Nick Riehle
|Return on Capital (Average, Past 3 Years)||(93.6%)|
|Cash/Debt||$57.6 million / $0|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 12.5% of the 136 members who have rated Chelsea believe the stock will underperform the S&P 500 going forward.
Chelsea CEO Simon Pedder laid some serious crepe in an unusual press release ahead of the FDA Advisory Committee meeting for Northera. He referenced FDA briefing documents that apparently raised concerns about weakness in the design of the Northera phase III trials, as well as much more troubling "questions" regarding the role of Northera in several deaths which occurred during the studies. ...
It seems that Pedder was trying to protect himself and his company from accusations of concealing material information ahead of the FDA Ad Comm material event. Indeed, a large contingent of investors fled the stock, dropping the share price substantially. ...
I believe that the prudent souls who exited the stock will be proven correct when the FDA issues very negative briefing documents on February 21, two days in advance of the advisory committee meeting.
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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Abbott. Motley Fool newsletter services have recommended buying shares of Abbott. Try any of our Foolish newsletter services free for 30 days.