Phil Nadeau Continues to Highlight La Jolla Pharmaceutical Company (LJPC) as “Undervalued” on Back of Giapreza’s Early FDA Victory

Cowen's Phil Nadeau looks for "rapid adoption" in La Jolla's Giapreza's approved wider indication to hike up blood pressure in refractory patients.


La Jolla Pharmaceutical Company (NASDAQ:LJPC) shares are on a 15% upspring today after investors caught word of last night’s best kind of FDA approval timing: early. Keep in mind, this comes a whopping two months before the biotech company’s PDUFA date with destiny for its injection for intravenous infusion Giapreza (angiotensin II), designed for adult patients who need to boost severely low blood pressure from septic or other distributive shock.

Cowen analyst Phil Nadeau takes the exciting news in stride, likewise cheering a “wider-than-expected indication,” one that will not mandate patients be refractory to take the treatment.

With Giapreza set for a March launch and continuing to bet that this drug maker is “undervalued for Giapreza’s potential,” the analyst reiterates an Outperform rating on LJPC stock with a $55 price target, which implies a 69% upside potential from current levels. (To watch Nadeau’s track record, click here)

With broad bullish praise, Nadea asserts: “As Giapreza’s Phase III SPA-supported ATHOS trial had produced strongly positive results, and as the FDA had indicated that no Advisory Committee would be held, investors anticipated that Giapreza would be approved. However, we suspect that investors were nonetheless surprised by last night’s announcement, for two reasons. First, the approval came more than two months ahead of Giapreza’s February 28 PDUFA date, a fast review even for this accommodative FDA. Second, Giapreza’s indication is quite wide, essentially for anyone in septic or other distributive shock. Since Giapreza’s Phase III had been conducted in catecholamine refractory patients, most investors expected Giapreza to receive a label for use in the refractory setting. Therefore, Giapreza’s indication is meaningfully more wide than anticipated.”

Though Giaprezza’s price has not been disclosed by the company yet, Nadeau angles for an average price per patient of $7,500 at the time of the asset’s launch come March of 2018.

TipRanks highlights a mostly confident Wall Street on La Jolla’s opportunity in the biotech-verse. Out of 5 analysts polled in the last 3 months, 4 are bullish on La Jolla stock with just 1 bearish. With a meaningful return potential of 115%, the stock’s consensus target price stands at $69.00.

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