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La Jolla Pharma Is A 'Top Pick' For This Analyst

La Jolla Pharma Is A 'Top Pick' For This Analyst
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In a report published Monday, Chardan Capital Markets analyst Gbola Amusa maintained a Buy rating on La Jolla Pharmaceutical Company (NASDAQ: LJPC), with a price target of $60.

Analyst Gbola Amusa commented, “Post Q2 results, we update our model, accounting for a pick-up in expenses due to the successful start of phase I/II trials for LJPC-501 in hepatorenal syndrome and LJPC-401 in hereditary hemochromatosis (chronic iron overload).”

The EPS estimates for 2015 and 2016 and 2017 have been reduced from -$2.16 to -$2.85 and from -$2.27 to -$3.01, respectively. The EPS estimate for 2017 has been raised from -$2.98 to -$2.62.

Amusa said that La Jolla was a “top pick” in view of the “multi-layered optionality from upcoming catalysts.” These were enumerated as:

  • Option 1: LJPC-501 could achieve a penetration of 60-100 percent in the catecholamine-resistant hypotension market. This suggests a price target of $110 to $200+, “with further upside and operating leverage possible if the LJPC-501 price were greater than $15,000.”
  • Option 2: Phase I/II data for LJPC-401 in hereditary hemochromatosis, or chronic iron overload, is expected in the back half of this year. Positive data could result in a price target upside of $24.
  • Option 3: Phase I/II data for LJPC-501 in hepatorenal syndrome, or HRS, is expected in the back half of this year. While the final phase III CRH data for LJPC-501 is expected in 2H16, positive phase I/II data could lead to further upside.

Latest Ratings for LJPC

Feb 2018JefferiesDowngradesBuyUnderperform
Dec 2017H.C. WainwrightInitiates Coverage OnBuy
Dec 2017JP MorganDowngradesOverweightUnderweight

View More Analyst Ratings for LJPC
View the Latest Analyst Ratings

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