La Jolla Pharma (LJPC) Price Target Raised at Wedbush Following Positive GCS-100 Trial

March 11, 2014 8:17 AM EDT
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Price: $19.50 +2.96%

Rating Summary:
    8 Buy, 0 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 14 | Down: 11 | New: 8
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Wedbush reiterated an Outperform rating on La Jolla Pharma (NASDAQ: LJPC) and raised its price target to $32.00 (from $27.00). Comments follow positive results in a Phase 2a trial for GCS-100, which showed statistically significant improvement in kidney function in CKD patients.

"There were no serious adverse events in the 1.5 mg/m2 arm but there were two in patients treated with placebo and two in the 30 mg/m2 GCS-100 arm. None of the four SAEs were considered drug-related. A statistically significant (p=0.045) improvement in estimated glomerular filtration rate (eGFR) was observed in the 1.5 mg/m2 treatment arm but not in placebo or 30 mg/m2 treated patients. The lack of net response in the high dose arm was also seen in a retrospective analyses of past oncology trials and we do not believe these results are worrisome," said analyst Liana Moussatos.

"La Jolla ended Q3:13 with about $10.7 million in cash and management reiterated runway into 2015. We anticipate the company is likely to move not only GCS-100 forward in CKD, but also initiate Phase 1 and 2 trials for multiple candidates including: LJPC-1010 for nonalcoholic steatohepatitis (NASH), LJPC-401 in iron overload, and LJPC-501 in hepatorenal syndrome (HRS). With clinical, regulatory, and commercial success, we believe GCS-100 gross peak annual sales in CKD could conservatively reach over $1.2 billion worldwide in 2023. With potentially successful launches of GCS-100 in CKD and LJPC-501 in HRS in 2018, and LJPC-401 in iron overload in 2019, we anticipate LJPC achieving full-year profitability in 2019," she added.

For an analyst ratings summary and ratings history on La Jolla Pharma click here. For more ratings news on La Jolla Pharma click here.

La Jolla Pharma closed at $10.90 yesterday, with a 52 week range of $3 - $12.

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