27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
La Jolla Pharmaceutical Company (NASDAQ:LJPC) has an upcoming catalyst in the form of a Feb. 28 PDUFA date. An analyst at H.C. Wainwright recommends buying of the shares ahead of the decision.
The Analyst
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H.C. Wainwright analyst Edward White initiated coverage of the shares of La Jolla with a Buy rating and a $62 price target.
The Thesis
The top-notch rating is based on the outlook for La Jolla's pipeline, including LJPC-501 and LJPC-401, White said in a Thursday note. (See White's track record here.)
LJPC-501 is La Jolla's proprietary formulation of angiotensin II, a naturally occurring regulator of blood pressure, and LJPC-401 is its proprietary formulation of hepcidin, an endogenous peptide hormone that controls and regulates iron metabolism.
With the company having submitted the NDA for LJPC-501 — a treatment candidate for vasodilatory shockm — to the FDA, the PDUFA date is set for Feb. 28, White said. The company released positive Phase 3 data from the ATHOS-3 Phase 3 study for LJPC-501 in late February 2017, sending the stock higher, the analyst said.
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White expects the company to launch LJPC-501 in March 2018 pending approval. La Jolla plans to submit a marketing authorization approval for the product in the third quarter of 2018. The pricing is expected to be $5,000 per patient course, White said.
La Jolla's LJPC-401 for iron overload is now being evaluated in a pivotal clinical study in patients with beta-thalassemia and in a Phase 2 study of hereditary hemochromatosis, according to H.C. Wainwright.
The firm estimates revenues of $27 million for 2018 and $113 million for 2019, against consensus estimates of $33 million and $97 million, respectively. The below-consensus revenue guidance for 2018 is due to a slower ramp up rate, White said.
The Price Action
The shares of La Jolla are up about 55 percent year-to-date.
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27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.