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

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


Market Performance


7 Day Return

0.7%

LJPC

1.6%

US Biotechs

0.4%

US Market


1 Year Return

-47.7%

LJPC

-7.7%

US Biotechs

6.9%

US Market

Return vs Industry: LJPC underperformed the US Biotechs industry which returned -7.7% over the past year.

Return vs Market: LJPC underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

LJPCIndustryMarket
7 Day0.7%1.6%0.4%
30 Day-17.8%-2.4%-1.2%
90 Day-3.1%-1.5%-0.4%
1 Year-47.7%-47.7%-6.9%-7.7%9.3%6.9%
3 Year-56.7%-56.7%14.7%10.7%45.8%36.4%
5 Year-24.9%-24.9%-2.3%-7.0%62.9%45.1%

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

Undervalued: LJPC ($8.45) is trading below our estimate of fair value ($110.44)

Significantly Undervalued: 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 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

Low 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 5 analysts?

44.9%

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 (47.3% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: LJPC's revenue (47.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

-42.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: LJPC is unprofitable, and losses have increased over the past 5 years at a rate of -42.4% 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 (78.4%).


Return on Equity

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


Return on Assets

ROA vs Industry: LJPC is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: LJPC is currently unprofitable, so its Return on Capital Employed is negative.


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

Inventory Level: LJPC has a high level of physical assets or inventory.

Debt Coverage by Assets: LJPC has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


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's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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

3.5yrs

Average management tenure


CEO

George Tidmarsh (59yo)

7.8yrs

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

Compensation vs. Market: George's total compensation ($USD1.51M) is about average for companies of similar size in the US market ($USD1.16M).

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


Management Age and Tenure

3.5yrs

Average Tenure

54.5yo

Average Age

Experienced Management: LJPC's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

5.5yrs

Average Tenure

57yo

Average Age

Experienced Board: LJPC's board of directors are considered experienced (5.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$16,69431 Jan 19
Lakhmir Chawla
EntityIndividual
Role
Senior Key Executive
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
Chief Executive Officer
President
Shares2,000
Max PriceUS$5.85
BuyUS$9,74610 Jan 19
James Rolke
EntityIndividual
Role
Chief Scientific Officer
Chief Scientific Officer
Shares1,600
Max PriceUS$6.10
BuyUS$30,82510 Jan 19
Jennifer Carver
EntityIndividual
Role
Chief Operating Officer
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

Ownership Breakdown


Management Team

  • Dennis Mulroy (64yo)

    Chief Financial Officer

    • Tenure: 4.5yrs
    • Compensation: US$2.01m
  • George Tidmarsh (59yo)

    President

    • Tenure: 7.8yrs
    • Compensation: US$1.51m
  • Mink Chawla (48yo)

    Chief Medical Officer

    • Tenure: 4.3yrs
    • Compensation: US$782.21k
  • James Rolke (50yo)

    Chief Scientific Officer

    • Tenure: 2.8yrs
    • Compensation: US$2.00m
  • Jennifer Carver (65yo)

    Chief Operating Officer

    • Tenure: 2.8yrs
    • Compensation: US$787.39k
  • Darryl Wellinghoff (50yo)

    Chief Commercial Officer

    • Tenure: 0.6yrs
  • Sandra Vedrick

    Director of Investor Relations & Human Resources

    • Tenure: 0yrs

Board Members

  • Kevin Tang (52yo)

    Chairman of the Board

    • Tenure: 5.2yrs
    • Compensation: US$53.10k
  • George Tidmarsh (59yo)

    President

    • Tenure: 7.8yrs
    • Compensation: US$1.51m
  • Tom Ganz

    Member of Scientific Advisory Board

    • Tenure: 5.7yrs
  • Laura Douglass (54yo)

    Director

    • Tenure: 6yrs
    • Compensation: US$113.10k
  • Elizabeta Nemeth

    Member of Scientific Advisory Board

    • Tenure: 5.7yrs
  • Craig Johnson (57yo)

    Director

    • Tenure: 6yrs
    • Compensation: US$133.10k
  • Robert Rosen (63yo)

    Director

    • Tenure: 5.3yrs
    • Compensation: US$113.10k
  • Paul Adams

    Member of Advisory Board

    • Tenure: 4.5yrs
  • Victor Gordeuk

    Member of Advisory Board

    • Tenure: 4.5yrs
  • Ashutosh Lal

    Member of Advisory Board

    • Tenure: 4.5yrs

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$229.341m
  • Shares outstanding: 27.14m
  • 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 (angiot ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 23:36
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.