La Jolla Represents An Undervalued Player With Significant Upside, Says H.C. Wainwright
In a research note released Tuesday, H.C. Wainwright analyst Reni Benjamin reiterated a Buy rating on La Jolla Pharmaceutical (LJPC) and raised his price target to $20 (from $17), which represents a potential upside of approx. 100% from where the stock is currently trading.
Benjamin wrote, “La Jolla Pharmaceutical’s biotechnology franchise is comprised of GCS-100, a pectin based galectin-3 inhibitor in Phase 2 development in Chronic Kidney Disease (CKD). The company recently announced the development of LJPC-501 in Catecholamine Resistant Hypotension (CRH), expected to enter a pivotal trial in early 2015, in addition to LJPC-401 which should enter a Phase 1 trial in iron overload disorders later this year. Finally, the company disclosed that it is also developing LJPC-1010, an orally available formulation of GCS-100, in non-alcoholic steatohepatitis (NASH). Based on the clinical profile to date, we believe that GCS-100 shows best-in-class efficacy and safety profiles relative to other competitors in the space. Given the company’s portfolio of diverse assets, the potential to secure an ex-US partnership, and a cash position of $58 MM (pro forma), we believe La Jolla Pharmaceutical represents an undervalued player with significant upside for the longterm investor”.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Reni Benjamin has a -0.8% average return and a 36.7% success rate. Benjamin has a 4.7% average return when recommending LJPC, and is ranked #2552 out of 3203 analysts.
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