Chelsea Therapeutics Earnings: Loss Narrows and Exceeds Estimates
Chelsea Therapeutics International Ltd. ‘s (NASDAQ:CHTP) third quarter loss narrowed, beating estimates. Chelsea Therapeutics International is a specialty pharmaceutical company focused on the acquisition, development, and commercialization of innovative pharmaceutical products.
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Chelsea Therapeutics International Ltd. Earnings Cheat Sheet
Results: Loss narrowed to $6.1 million (loss of 9 cents per diluted share) from $10.9 million (loss of 18 cents per share) in the same quarter a year earlier.
Actual vs. Wall St. Expectations: Chelsea Therapeutics International Ltd. beat the mean analyst estimate of a loss of 11 cents per share.
Quoting Management: “As 2012 draws to a close, we look forward to reporting results, in the fourth quarter, from Northera Study 306B, the largest clinical trial ever conducted in symptomatic neurogenic orthostatic hypotension,” said Joseph G. Oliveto, Interim CEO of Chelsea. “These data, along with input from the FDA, should enable us to finalize the size and design of an additional confirmatory clinical study to support our effort to gain marketing approval of Northera in Neurogenic OH.” Mr. Oliveto added: “Thanks to our restructuring and ongoing cost containment efforts, we currently project that year-end cash will be over $27 million. Based on our current projections, including the recently announced waiver of a 2013 purchase obligation, this should provide us with sufficient cash runway to cover operations into the second quarter of 2014.”
The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with a loss of -12 cents versus a mean estimate of a loss of 19 cents per share.
Looking Forward: The outlook for the company’s performance in the upcoming quarter is increasingly favorable. Over the past ninety days, the average estimate for the fourth quarter has risen from a loss 13 cents per share to a profit of 10 cents. Over the past ninety days, the average estimates for the fiscal year has risen from a loss of 64 cents per share to a loss of 56 cents.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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