La Jolla Could Nearly Triple, Cowen Says

On Tuesday, Cowen and Company issued a company note on La Jolla Pharmaceutical Company

ahead of multiple drug trials for the company's pipeline. Currently, analysts at Cowen rate La Jolla Pharmaceutical as Outperform with a $40 price target. Phil Nadeau and Cristina Ghenoiu, analysts at Cowen and Company, wrote, "La Jolla's lead candidate LJPC-501 is a proprietary formulation...and a key regulator of blood pressure. La Jolla has advanced LJPC-501 into the...Phase III trial in patients...We estimate that LJPC-501 will achieve $480MM in sales by 2021 and over $1B at peak… Analysts at Cowen and Company gave a key insight into why they believe that La Jolla's stock has the potential to triple in value: 1. Clinical data for its lead drug candidate Cowen noted that Phase II data for La Jolla's frug LJPC-501 showed the potential to meet its primary endpoint, thus increasing the likelihood that the drug is effective in treating hypotension. Analysts wrote that there is an extensive need for drugs such as LJPC-501 as there are over 360 thousand patients hospitalized for hypotension with an 80 percent mortality rate. If the drug proves efficacy and safety in subsequent trials, it represents a major opportunity for La Jolla Pharmaceutical to drive revenue and profitability, as analysts believe that physicians will adopt the drug if approved. Currently, La Jolla Pharmaceutical Company is trading at $14.34, up 5.60 percent.