La Jolla Pharmaceutical Company engages in the development and commercialization of therapies that improve outcomes in patients suffering from life-threatening diseases.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$3.76|
|52 Week High||US$3.35|
|52 Week Low||US$7.85|
|1 Month Change||-7.39%|
|3 Month Change||4.15%|
|1 Year Change||-6.00%|
|3 Year Change||-76.98%|
|5 Year Change||-78.51%|
|Change since IPO||-100.00%|
Recent News & Updates
Our Take On La Jolla Pharmaceutical Company
La Jolla Pharmaceutical Company (LJPC) strengthened its balance sheet with upfront money from the EU commercial rights to its two septic shock related products. Although Giapreza sales have been uninspiring since its 2018 launch, the company is nearing cash flow positive, owing to the lack of a meaningful R&D effort since a 2019 restructuring. With a market cap less than two times forecasted 2022 sales and insider buying, La Jolla merited a deeper dive. A full investment analysis follows in the paragraphs below.
|LJPC||US Biotechs||US Market|
Return vs Industry: LJPC underperformed the US Biotechs industry which returned 16.1% over the past year.
Return vs Market: LJPC underperformed the US Market which returned 30.3% over the past year.
Stable Share Price: LJPC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: LJPC's weekly volatility (7%) has been stable over the past year.
About the Company
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
|LJPC fundamental statistics|
Is LJPC overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|LJPC income statement (TTM)|
|Cost of Revenue||US$11.47m|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||0.11|
|Net Profit Margin||4.15%|
How did LJPC perform over the long term?See historical performance and comparison
Is La Jolla Pharmaceutical undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LJPC ($3.76) is trading below our estimate of fair value ($7.37)
Significantly Below Fair Value: LJPC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: LJPC is poor value based on its PE Ratio (35.5x) compared to the US Biotechs industry average (24x).
PE vs Market: LJPC is poor value based on its PE Ratio (35.5x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: LJPC is poor value based on its PEG Ratio (1.1x)
Price to Book Ratio
PB vs Industry: LJPC has negative assets, so we can't compare its PB Ratio to the US Biotechs industry average.
How is La Jolla Pharmaceutical forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LJPC's forecast earnings growth (31.8% per year) is above the savings rate (2%).
Earnings vs Market: LJPC's earnings (31.8% per year) are forecast to grow faster than the US market (14.7% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: LJPC's revenue (4.8% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: LJPC's revenue (4.8% 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
How has La Jolla Pharmaceutical performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LJPC has a large one-off loss of $6.0M impacting its June 30 2021 financial results.
Growing Profit Margin: LJPC became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: LJPC has become profitable over the past 5 years, growing earnings by 8.4% per year.
Accelerating Growth: LJPC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: LJPC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Biotechs industry (4.9%).
Return on Equity
High ROE: LJPC's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
How is La Jolla Pharmaceutical's financial position?
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 (5.7%).
Interest Coverage: LJPC's interest payments on its debt are not well covered by EBIT (2.6x coverage).
What is La Jolla Pharmaceutical current dividend yield, its reliability and sustainability?
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.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of LJPC's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Larry Edwards (49 yo)
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 ($USD2.91M) is above average for companies of similar size in the US market ($USD542.93K).
Compensation vs Earnings: Insufficient data to compare Larry's compensation with company performance.
Experienced Management: LJPC's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Experienced Board: LJPC's board of directors are considered experienced (6.8 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
La Jolla Pharmaceutical Company's employee growth, exchange listings and data sources
- Name: La Jolla Pharmaceutical Company
- Ticker: LJPC
- Exchange: NasdaqCM
- Founded: 1989
- Industry: Biotechnology
- Sector: Pharmaceuticals & Biotech
- Market Cap: US$103.355m
- Shares outstanding: 27.49m
- Website: https://lajollapharmaceutical.com
Number of Employees
- La Jolla Pharmaceutical Company
- 4747 Executive Drive
- Suite 240
- San Diego
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/25 23:08|
|End of Day Share Price||2021/10/25 00:00|
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.