NasdaqCM:LJPC

Stock Analysis Report

Executive Summary

La Jolla Pharmaceutical Company, a biopharmaceutical company, focuses on the discovery, development, and commercialization of therapeutics for life-threatening diseases.

Snowflake

Fundamentals

High growth potential and slightly overvalued.

Risks

  • La Jolla Pharmaceutical has significant price volatility in the past 3 months.

Share Price & News

How has La Jolla Pharmaceutical's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-8.1%

NasdaqCM:LJPC

-1.2%

US Biotechs

-0.3%

US Market


1 Year Return

-71.2%

NasdaqCM:LJPC

-11.7%

US Biotechs

3.4%

US Market

LJPC underperformed the Biotechs industry which returned -11.9% over the past year.

LJPC underperformed the Market in United States of America which returned 4.1% over the past year.


Share holder returns

LJPCIndustryMarket
7 Day-8.1%-1.2%-0.3%
30 Day-11.4%-0.4%2.9%
90 Day22.7%1.6%2.1%
1 Year-71.2%-71.2%-11.0%-11.7%5.7%3.4%
3 Year-47.0%-47.0%12.4%8.4%45.8%36.2%
5 Year-23.5%-23.5%10.7%5.8%58.9%41.3%

Price Volatility Vs. Market

How volatile is La Jolla Pharmaceutical's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is La Jolla Pharmaceutical undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

La Jolla Pharmaceutical's share price is below the future cash flow value, and at a moderate discount (> 20%).

La Jolla Pharmaceutical's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

La Jolla Pharmaceutical is loss making, we can't compare its value to the US Biotechs industry average.

La Jolla Pharmaceutical is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for La Jolla Pharmaceutical, we can't assess if its growth is good value.


Price Based on Value of Assets

La Jolla Pharmaceutical is overvalued based on assets compared to the US Biotechs industry average.


Next Steps

Future Growth

How is La Jolla Pharmaceutical expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

48.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

La Jolla Pharmaceutical's revenue is expected to grow significantly at over 20% yearly.

La Jolla Pharmaceutical's earnings are expected to grow significantly at over 20% yearly.

La Jolla Pharmaceutical's revenue growth is expected to exceed the United States of America market average.

La Jolla Pharmaceutical's earnings growth is expected to exceed the United States of America market average.

La Jolla Pharmaceutical's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if La Jolla Pharmaceutical will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

-45.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

La Jolla Pharmaceutical does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare La Jolla Pharmaceutical's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare La Jolla Pharmaceutical's 1-year growth to the US Biotechs industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if La Jolla Pharmaceutical has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if La Jolla Pharmaceutical has efficiently used its assets last year compared to the US Biotechs industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if La Jolla Pharmaceutical improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is La Jolla Pharmaceutical's financial position?


Financial Position Analysis

La Jolla Pharmaceutical is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

La Jolla Pharmaceutical's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

La Jolla Pharmaceutical's level of debt (1100.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (0% vs 1100.2% today).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.2x debt.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

La Jolla Pharmaceutical has less than a year of cash runway based on current free cash flow.

La Jolla Pharmaceutical has less than a year of cash runway if free cash flow continues to grow at historical rates of 46% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate La Jolla Pharmaceutical's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate La Jolla Pharmaceutical's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as La Jolla Pharmaceutical has not reported any payouts.

Unable to verify if La Jolla Pharmaceutical's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as La Jolla Pharmaceutical has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of La Jolla Pharmaceutical's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

George Tidmarsh (59yo)

7.5yrs

Tenure

US$1,509,081

Compensation

Dr. George F. Tidmarsh, M.D., Ph.D., has been the Chief Executive Officer, President and Secretary of La Jolla Pharmaceutical Company since January 19, 2012. Dr. Tidmarsh has experience creating, building  ...


CEO Compensation Analysis

George's remuneration is about average for companies of similar size in United States of America.

George's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.3yrs

Average Tenure

54.5yo

Average Age

The tenure for the La Jolla Pharmaceutical management team is about average.


Board Age and Tenure

5.2yrs

Average Tenure

57yo

Average Age

The tenure for the La Jolla Pharmaceutical board of directors is about average.


Insider Trading

No 3 month individual insider trading information.


Recent Insider Transactions

BuyUS$16,69431 Jan 19
Lakhmir Chawla
EntityIndividual
Role
Chief Medical Officer
Shares3,000
Max PriceUS$5.57
BuyUS$6,985,28510 Jan 19
Tang Capital Management, LLC
EntityCompany
Shares1,300,000
Max PriceUS$5.84
BuyUS$11,70010 Jan 19
George Tidmarsh
EntityIndividual
Role
President
Member of the Board of Directors
Shares2,000
Max PriceUS$5.85
BuyUS$9,74610 Jan 19
James Rolke
EntityIndividual
Role
Chief Scientific Officer
Shares1,600
Max PriceUS$6.10
BuyUS$30,82510 Jan 19
Jennifer Carver
EntityIndividual
Role
Chief Operating Officer
Shares5,000
Max PriceUS$6.19
SellUS$11,715,98510 Jan 19
Perceptive Advisors LLC
EntityCompany
Shares2,060,235
Max PriceUS$9.52
BuyUS$20,89521 Aug 18
Jennifer Carver
EntityIndividual
Role
Chief Operating Officer
Shares1,000
Max PriceUS$20.90
BuyUS$21,99721 Aug 18
James Rolke
EntityIndividual
Role
Chief Scientific Officer
Shares1,000
Max PriceUS$22.00

Ownership Breakdown


Management Team

  • Dennis Mulroy (64yo)

    Chief Financial Officer

    • Tenure: 4.3yrs
    • Compensation: $2.01m
  • George Tidmarsh (59yo)

    President

    • Tenure: 7.5yrs
    • Compensation: $1.51m
  • Mink Chawla (48yo)

    Chief Medical Officer

    • Tenure: 4.0yrs
    • Compensation: $782.21k
  • James Rolke (50yo)

    Chief Scientific Officer

    • Tenure: 2.5yrs
    • Compensation: $2.00m
  • Jennifer Carver (65yo)

    Chief Operating Officer

    • Tenure: 2.5yrs
    • Compensation: $787.39k
  • Darryl Wellinghoff (50yo)

    Chief Commercial Officer

    • Tenure: 0.3yrs
  • Sandra Vedrick

    Director of Investor Relations & Human Resources


Board Members

  • Tom Ganz

    Member of Scientific Advisory Board

    • Tenure: 5.4yrs
  • Elizabeta Nemeth

    Member of Scientific Advisory Board

    • Tenure: 5.4yrs
  • George Tidmarsh (59yo)

    President

    • Tenure: 7.5yrs
    • Compensation: $1.51m
  • Paul Adams

    Member of Advisory Board

    • Tenure: 4.3yrs
  • Victor Gordeuk

    Member of Advisory Board

    • Tenure: 4.3yrs
  • Robert Rosen (63yo)

    Director

    • Tenure: 5.0yrs
    • Compensation: $113.10k
  • Ashutosh Lal

    Member of Advisory Board

    • Tenure: 4.3yrs
  • Kevin Tang (52yo)

    Chairman of the Board

    • Tenure: 4.9yrs
    • Compensation: $53.10k
  • Craig Johnson (57yo)

    Director

    • Tenure: 5.8yrs
    • Compensation: $133.10k
  • Laura Douglass (54yo)

    Director

    • Tenure: 5.8yrs
    • Compensation: $113.10k

Company Information

La Jolla Pharmaceutical Company's company bio, 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$237.656m
  • Shares outstanding: 27.10m
  • Website: Click here

Number of Employees


Location

  • La Jolla Pharmaceutical Company
  • 4550 Towne Centre Court
  • San Diego
  • California
  • 92121
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LJPCNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJun 1994
LJPPDB (Deutsche Boerse AG)YesCommon StockDEEURJun 1994

Biography

La Jolla Pharmaceutical Company, a biopharmaceutical company, focuses on the discovery, development, and commercialization of therapeutics for life-threatening diseases. The company offers GIAPREZA (angiot ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/17 23:38
End of Day Share Price2019/07/17 00:00
Earnings2019/03/31
Annual Earnings2018/12/31


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.