NasdaqCM:LJPC

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Slightly overvalued with limited growth.

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

Stable Share Price: LJPC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.4%

LJPC

-3.9%

US Biotechs

1.3%

US Market


1 Year Return

-53.1%

LJPC

27.2%

US Biotechs

14.9%

US Market

Return vs Industry: LJPC underperformed the US Biotechs industry which returned 24.5% over the past year.

Return vs Market: LJPC underperformed the US Market which returned 12.5% over the past year.


Shareholder returns

LJPCIndustryMarket
7 Day1.4%-3.9%1.3%
30 Day-9.8%-3.5%4.7%
90 Day-47.5%7.4%17.1%
1 Year-53.1%-53.1%28.5%27.2%17.3%14.9%
3 Year-87.7%-87.7%26.2%22.0%38.9%29.9%
5 Year-84.6%-84.6%-4.2%-9.7%71.3%52.8%

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 compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LJPC ($3.98) is trading below our estimate of fair value ($28.3)

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


Price To Earnings Ratio

PE vs Industry: LJPC is unprofitable, so we can't compare its PE Ratio to the US Biotechs industry average.

PE vs Market: LJPC is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LJPC's PEG Ratio to determine if it is good value.


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.


Next Steps

Future Growth

How is La Jolla Pharmaceutical forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

49.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LJPC is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: LJPC is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: LJPC is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: LJPC's revenue (29.4% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: LJPC's revenue (29.4% per year) is forecast to grow faster 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


Next Steps

Past Performance

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

-27.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LJPC is currently unprofitable.

Growing Profit Margin: LJPC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LJPC is unprofitable, and losses have increased over the past 5 years at a rate of 27.6% per year.

Accelerating Growth: Unable to compare LJPC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LJPC is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (-22.5%).


Return on Equity

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


Next Steps

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.


Balance Sheet


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.

Stable Cash Runway: LJPC has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if LJPC has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

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?

1.0yrs

Average management tenure


CEO

La Jolla Pharmaceutical has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Lakhmir Chawla
Chief Medical Officer5.08yrsUS$690.54k0.042% $45.5k
Darryl Wellinghoff
Chief Commercial Officer1.42yrsUS$1.03m0.035% $37.8k
Michael Hearne
CFO, Principal Financial & Accounting Officer0.17yrno datano data
Sandra Vedrick
Senior Director of Investor Relations & Human Resourcesno datano datano data
Stewart Kroll
Chief Development Officer0.67yrno datano data

1.0yrs

Average Tenure

54yo

Average Age

Experienced Management: LJPC's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Kevin Tang
Chairman of the Board6yrsUS$34.41kno data
David Ramsay
Independent Director0.83yrUS$154.65kno data
Tomas Ganz
Member of Scientific Advisory Board6.5yrsno datano data
Laura Douglass
Independent Director6.83yrsUS$94.41k0.0018% $2.0k
Elizabeta Nemeth
Member of Scientific Advisory Board6.5yrsno datano data
Craig Johnson
Independent Director6.83yrsUS$109.41kno data
Robert Rosen
Independent Director6.08yrsUS$94.41kno data
Paul Adams
Member of Advisory Board5.33yrsno datano data
Victor Gordeuk
Member of Advisory Board5.33yrsno datano data
Ashutosh Lal
Member of Advisory Board5.33yrsno datano data
Gordon McLaren
Member of Advisory Board5.33yrsno datano data

6.0yrs

Average Tenure

55yo

Average Age

Experienced Board: LJPC's board of directors are considered experienced (6 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 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$108.649m
  • Shares outstanding: 27.30m
  • Website: https://lajollapharmaceutical.com

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 (angiotensin II), a vasoconstrictor indicated to increase blood pressure in adults with septic or other distributive shock. It is also developing LJPC-0118 for the treatment of severe malaria; and LJPC-401 (synthetic human hepcidin), an investigational product to treat conditions characterized by iron overload. The company was founded in 1989 and is headquartered in San Diego, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/03 00:15
End of Day Share Price2020/07/31 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.