Health Business Recap: Forest Labs, Chelsea Therapeutics Stuck Waiting on the FDA

The FDA wants further testing of Chelsea Therapeutics’ (NASDAQ:CHTP) Northera drug’s durability over a two to three month period, and shares plummet. The med, which is designed to help stop patients with Parkinson’s disease type conditions from tumbling, had already been recommended for approval by an agency panel.

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Three additional months will be required by the FDA to evaluate Forest Labs’ (NYSE:FRX) proposed drug that is designed for treatment of chronic obstructive pulmonary disease, although a federal advisory panel of non-FDA medical experts recently backed its approval.

Nasdaq advises Peregrine Pharmaceuticals (NASDAQ:PPHM) that its stock price is too low, and as such might be removed from the list. Shares fall at the revelation, perhaps making the prophecy nearer to becoming self-fulfilled.

It’s a day in which the FDA mandates further tests and trials for several treatments proposed by a number of pharmaceutical developers. Impacted adversely are Vivus (NASDAQ:VVUS) shares, as the agency’s advisory panel decides to require cardiovascular outcomes trials for drugs that do not contain a theoretical risk or signal for cardiovascular harm. Other weight-loss drug companies such as Orexigen Therapeutics, Inc. (NASDAQ:OREX) and Arena Pharmaceuticals, Inc. (NASDAQ:ARNA), might also have to run additional tests to convince the FDA of their drug’s safety.

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To contact the reporter on this story: Mark Lawson at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com