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LJPC

La Jolla Pharmaceutical NasdaqCM:LJPC Stock Report

Last Price

US$6.22

Market Cap

US$155.1m

7D

0.3%

1Y

69.9%

Updated

18 Aug, 2022

Data

Company Financials +
LJPC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance3/6
Financial Health0/6
Dividends0/6

LJPC Stock Overview

La Jolla Pharmaceutical Company engages in the development and commercialization of therapies that improve outcomes in patients suffering from life-threatening diseases.

La Jolla Pharmaceutical Competitors

Price History & Performance

Summary of all time highs, changes and price drops for La Jolla Pharmaceutical
Historical stock prices
Current Share PriceUS$6.22
52 Week HighUS$6.22
52 Week LowUS$3.07
Beta2.41
1 Month Change0.49%
3 Month Change57.87%
1 Year Change69.95%
3 Year Change-39.14%
5 Year Change-79.92%
Change since IPO-100.00%

Recent News & Updates

Jul 11

Innoviva to acquire La Jolla Pharma for $149M including debt

Innoviva, Inc. (INVA), a diversified holding company, has agreed to acquire the commercial-stage biotech La Jolla Pharmaceutical Company (NASDAQ:LJPC) for $6.23 per share in cash, implying an enterprise value of ~$149M, the companies announced on Monday. Per the terms of the merger agreement, Innoviva (INVA) intends to pay $5.95 per share for La Jolla (LJPC) and $0.28 per share for additional cash proceeds from the divestiture of a non-core asset. The initial purchase price of $5.95 indicates a premium of 70% to the 30-day volume-weighted average price (VWAP). Innoviva (INVA), through one of its subsidiaries, will start a tender offer in this regard on or before July 25, 2022. The deal is expected to close within 30 business days. In 2017, the FDA approved La Jolla’s (LJPC) lead product to increase blood pressure in adults with septic or other distributive shock. A year later, the agency greenlighted its second product XERAVA as a treatment for adults with complicated intra-abdominal infections. The company reported $43.5M of net product sales in 2021 with ~30% YoY growth.

Shareholder Returns

LJPCUS BiotechsUS Market
7D0.3%-2.0%1.4%
1Y69.9%-22.2%-8.4%

Return vs Industry: LJPC exceeded the US Biotechs industry which returned -23% over the past year.

Return vs Market: LJPC exceeded the US Market which returned -9% over the past year.

Price Volatility

Is LJPC's price volatile compared to industry and market?
LJPC volatility
LJPC Average Weekly Movement23.8%
Biotechs Industry Average Movement12.4%
Market Average Movement7.6%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.1%

Stable Share Price: LJPC is more volatile than 90% of US stocks over the past 3 months, typically moving +/- 24% a week.

Volatility Over Time: LJPC's weekly volatility has increased from 14% to 24% over the past year.

About the Company

FoundedEmployeesCEOWebsite
198961Larry Edwardshttps://www.lajollapharmaceutical.com

La Jolla Pharmaceutical Company engages in the development and commercialization of therapies that improve outcomes in patients suffering from life-threatening diseases. The company offers GIAPREZA, a vasoconstrictor indicated to increase blood pressure in adults with septic or other distributive shock; and XERAVA, a tetracycline class antibacterial indicated for the treatment of complicated intra-abdominal infections in patients 18 years of age and older. It offers GIAPREZA and XERAVA to hospitals and other healthcare organizations in the United States.

La Jolla Pharmaceutical Fundamentals Summary

How do La Jolla Pharmaceutical's earnings and revenue compare to its market cap?
LJPC fundamental statistics
Market CapUS$155.11m
Earnings (TTM)US$3.97m
Revenue (TTM)US$46.49m

39.1x

P/E Ratio

3.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LJPC income statement (TTM)
RevenueUS$46.49m
Cost of RevenueUS$8.87m
Gross ProfitUS$37.62m
Other ExpensesUS$33.65m
EarningsUS$3.97m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.16
Gross Margin80.92%
Net Profit Margin8.54%
Debt/Equity Ratio-179.3%

How did LJPC perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is LJPC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LJPC?

Other financial metrics that can be useful for relative valuation.

LJPC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5.1x
Enterprise Value/EBITDA-304.6x
PEG Ratio0.7x

Price to Earnings Ratio vs Peers

How does LJPC's PE Ratio compare to its peers?

LJPC PE Ratio vs Peers
The above table shows the PE ratio for LJPC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average24.5x
XOMA XOMA
22.3x60.5%US$212.5m
SESN Sesen Bio
2.9x8.6%US$138.7m
RGBP Regen BioPharma
57.2xn/aUS$51.8m
CLNN Clene
15.6x68.6%US$241.3m
LJPC La Jolla Pharmaceutical
39.1x59.0%US$155.1m

Price-To-Earnings vs Peers: LJPC is expensive based on its Price-To-Earnings Ratio (39.1x) compared to the peer average (24.5x).


Price to Earnings Ratio vs Industry

How does LJPC's PE Ratio compare vs other companies in the US Biotechs Industry?

Price-To-Earnings vs Industry: LJPC is expensive based on its Price-To-Earnings Ratio (39.1x) compared to the US Biotechs industry average (16.2x)


Price to Earnings Ratio vs Fair Ratio

What is LJPC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LJPC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio39.1x
Fair PE Ratio42.2x

Price-To-Earnings vs Fair Ratio: LJPC is good value based on its Price-To-Earnings Ratio (39.1x) compared to the estimated Fair Price-To-Earnings Ratio (42.2x).


Share Price vs Fair Value

What is the Fair Price of LJPC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LJPC ($6.22) is trading below our estimate of fair value ($28.86)

Significantly Below Fair Value: LJPC is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is La Jolla Pharmaceutical forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


59.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LJPC's forecast earnings growth (59% per year) is above the savings rate (1.9%).

Earnings vs Market: LJPC's earnings (59% per year) are forecast to grow faster than the US market (14.4% per year).

High Growth Earnings: LJPC's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LJPC's revenue (19.8% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: LJPC's revenue (19.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if LJPC's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has La Jolla Pharmaceutical performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


40.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LJPC has a large one-off gain of $2.3M impacting its June 30 2022 financial results.

Growing Profit Margin: LJPC's current net profit margins (8.5%) are higher than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: LJPC has become profitable over the past 5 years, growing earnings by 40.6% per year.

Accelerating Growth: LJPC's earnings growth over the past year (36.3%) is below its 5-year average (40.6% per year).

Earnings vs Industry: LJPC earnings growth over the past year (36.3%) exceeded the Biotechs industry 24.5%.


Return on Equity

High ROE: LJPC's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


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Financial Health

How is La Jolla Pharmaceutical's financial position?

Financial Health Score

0/6

Financial Health Score 0/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: LJPC has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: LJPC has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: LJPC has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: LJPC's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: LJPC's debt is not well covered by operating cash flow (10.5%).

Interest Coverage: Insufficient data to determine if LJPC's interest payments on its debt are well covered by EBIT.


Balance Sheet


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Dividend

What is La Jolla Pharmaceutical current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate LJPC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate LJPC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LJPC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LJPC's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as LJPC has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average management tenure


CEO

Larry Edwards (50 yo)

2.08yrs

Tenure

US$2,389,409

Compensation

Mr. Larry G. Edwards has been President and Chief Executive Officer at La Jolla Pharmaceutical Company since July 2020. Mr. Edwards serves as Director at La Jolla Pharmaceutical Company since October 29, 2...


CEO Compensation Analysis

Compensation vs Market: Larry's total compensation ($USD2.39M) is above average for companies of similar size in the US market ($USD1.67M).

Compensation vs Earnings: Larry's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: LJPC's management team is considered experienced (2.1 years average tenure).


Board Members

Experienced Board: LJPC's board of directors are considered experienced (7.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

La Jolla Pharmaceutical Company's employee growth, exchange listings and data sources


Key Information

  • Name: La Jolla Pharmaceutical Company
  • Ticker: LJPC
  • Exchange: NasdaqCM
  • Founded: 1989
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Implied Market Cap: US$155.107m
  • Shares outstanding: 24.94m
  • Website: https://www.lajollapharmaceutical.com

Number of Employees


Location

  • La Jolla Pharmaceutical Company
  • 201 Jones Road
  • Suite 400
  • Waltham
  • Massachusetts
  • 2451
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/18 00:00
End of Day Share Price2022/08/18 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.