Why La Jolla Pharmaceutical Is Tumbling Today

DRugs spilled over money

What happened

Shares of La Jolla Pharmaceutical Company (NASDAQ: LJPC) , a commercial-stage biopharma focused on life-threating diseases, were down 21% as of 11:55 a.m. EDT Thursday. The huge drop is traceable to the release of second-quarter results that missed the mark.

So what

Here's a look at the key figures from La Jolla's second quarter:

  • Sales of Giapreza -- the company's recently launched drug that treats a sudden drop in blood pressure -- totaled $1.6 million for the period. That was well short of the $2.5 million in total sales that Wall Street was expecting.
  • Net loss was $52.3 million, or $2.02 per share. This figure was also worse than the $1.91 loss that market watchers' had predicted.
  • Cash balance at quarter-end was $241 million.

The lower-than-hoped-for results caused traders to head for the exits.

Now what

Giapreza has only been on the market for a few months, so it's still too early to draw any real conclusions about its chances of achieving commercial success.

La Jolla is expecting to hear from European regulators about a go/no-go decision on Giapreza in the second half of the year. If the regulatory decision is positive, the drug's addressable market opportunity could grow by more than half, so this remains a major catalyst for investors to look forward to.

If you're bullish on Giapreza's potential and think that European regulators will give it the thumbs-up, then right now might not be a bad time to consider picking up a few shares.

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Brian Feroldi has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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