Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Chelsea Therapeutics (UNKNOWN:CHTP.DL), a biopharmaceutical company focused on developing therapies to treat a number of disorders and conditions, skyrocketed as much as 32% after Danish pharmaceutical company H. Lundbeck (OTC:HLUYY) agreed to purchase the company.

So what: Under the terms of the deal H. Lundbeck will pay Chelsea shareholders $6.44 in cash per share, a 28.8% premium to yesterday's close, but will add up to an additional $1.50 per share in contingent value rights (CVR) based on the performance of Northera, Chelsea's recently approved drug that treats low blood pressure associated with Parkinson's disease. According to a Reuters report, H. Lundbeck CEO Ulf Wiinberg was quoted as saying, "We think Northera has the potential to be the most valuable product that we have in our portfolio."

Now what: This is certainly a victory for Chelsea Therapeutics' shareholders since launching a new drug, even one without any true competition, can be challenging. Chelsea had no experience in launching or marketing a drug, so agreeing to be purchased seems like a logical move. It's also smart on the part of H. Lundbeck to cover its behind with contingent value rights. Even if Northera doesn't reach its peak sales potential of $400 million it should still be able to whittle decent profits out of the drug over its patented lifetime to cover its buyout price of Chelsea. It might be tempting to jump in here in order to get your hands on those CVRs eventually, but I'd suggest that may not be the wisest move as there's no guarantee Northera will hit its sales goals. If I were a shareholder, I'd consider cashing out at least part of my holdings here.