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LJPC

La Jolla PharmaceuticalNasdaqCM:LJPC Stock Report

Market Cap

US$103.4m

7D

-2.1%

1Y

-6.0%

Updated

25 Oct, 2021

Data

Company Financials +
LJPC fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance2/6
Financial Health0/6
Dividends0/6

LJPC Overview

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

Summary of all time highs, changes and price drops for La Jolla Pharmaceutical
Historical stock prices
Current Share PriceUS$3.76
52 Week HighUS$3.35
52 Week LowUS$7.85
Beta2.38
1 Month Change-7.39%
3 Month Change4.15%
1 Year Change-6.00%
3 Year Change-76.98%
5 Year Change-78.51%
Change since IPO-100.00%

Recent News & Updates

Jul 02

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.

Shareholder Returns

LJPCUS BiotechsUS Market
7D-2.1%2.7%1.9%
1Y-6.0%18.8%33.4%

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.

Price Volatility

Is LJPC's price volatile compared to industry and market?
LJPC volatility
LJPC Beta2.38
Industry Beta0.98
Market Beta1

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

FoundedEmployeesCEOWebsite
198959Larry Edwardshttps://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$103.36m
Earnings (TTM)US$2.91m
Revenue (TTM)US$70.22m

35.5x

P/E Ratio

1.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LJPC income statement (TTM)
RevenueUS$70.22m
Cost of RevenueUS$11.47m
Gross ProfitUS$58.75m
ExpensesUS$55.83m
EarningsUS$2.91m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.11
Gross Margin83.66%
Net Profit Margin4.15%
Debt/Equity Ratio-188.0%

How did LJPC perform over the long term?

See historical performance and comparison

Valuation

Is La Jolla Pharmaceutical undervalued compared to its fair value and its price relative to the market?

49.0%

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.


Future Growth

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

31.8%

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


Past Performance

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

8.4%

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.


Financial Health

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).


Balance Sheet


Dividend

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.


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Larry Edwards (49 yo)

1.25yrs

Tenure

US$2,914,616

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 ($USD2.91M) is above average for companies of similar size in the US market ($USD542.93K).

Compensation vs Earnings: Insufficient data to compare Larry's compensation with company performance.


Leadership Team

Experienced Management: LJPC's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: LJPC's board of directors are considered experienced (6.8 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
  • Market Cap: US$103.355m
  • Shares outstanding: 27.49m
  • Website: https://lajollapharmaceutical.com

Number of Employees


Location

  • La Jolla Pharmaceutical Company
  • 4747 Executive Drive
  • Suite 240
  • San Diego
  • California
  • 92121
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 23:08
End of Day Share Price2021/10/25 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.