La Jolla Pharmaceutical Co. (OTCBB:LJPC) dropped for a second day in a row after losing another 10% during yesterday’s session. The stock is now trading for $0.165 per share which is still more than doubling their price per share from early September. Investors are continuing to show strong interest in the company and traded volume has remained consistently above the average of 427 thousand shares for the past week.
LJPC placed among the top traded stocks after they announced the completion of the private offering of their stock on September 30. They managed to accrue the sum of $10 million for approximately 96 million common shares at a price of $0.007 which was just below the market price at the time. The newly acquired funds will go towards the further development of the two major drugs for the company – GCS-100 and
LJPC-501.
The first one is currently undergoing Phase II clinical trial and is geared towards patients with Chronic Kidney Disease while
LJPC-501 will now begin a Phase I proof-of-concept clinical study in hepatorenal syndrome. In the second quarter of 2013
LJPC also managed to receive two Orphan Drug Designations from the FDA for
LJPC-6417 and
LJPC-0712. Their financial results for the period have also shown some improvement:
- $1.8 million cash
- $1.9 million total current assets
- $308 thousand total current liabilities
- ZERO revenue
- $3.1 million net loss
The company is not generating revenues due to the lack of a completed product but has managed to turn a negative working capital of $10 million from June 30, 2012 to a positive $1.6 million. And their cash position has been significantly boosted from the recent private placement.
LJPC have a rather big authorized share count of 12 billion but for now they have 871 million shares outstanding on a fully diluted basis.
Some email alerts were sent late in the afternoon from a couple of pumpers but none of them disclosed receiving any kind of compensation.
LJPC are among the more stable pharmaceutical pennystock companies but that doesn’t mean they are
without risk. Both products are in early development which leaves a lot of uncertainties for the future. That is why doing your due diligence is the best option before committing to anything.
Another medical company that recently caught the attention of the market is Biozone Pharmaceuticals, Inc. (OTCBB:BZNE). They finally managed to stem the bleeding of their stock and yesterday closed 3% up to $0.5. On the other hand Titan Pharmaceuticals, Inc. (OTCBB:TTNP) are doing much better and managed to break through the $1 mark and are now trading for $1.16 per share.
