Last Updated on January 28, 2020 by Zion Miller
Rating: BTFD (buy the effin dip)
Since our initial coverage, the LJPC thesis has been unfolding according to plan. For a look back at the initial story, click here. With RSI approaching oversold territory, recent massive insider buys, and imminent catalysts, bulls have a lot to look forward to.
LJPC has filled its gap down to $6.96 off of highs of $8.83. Several near-term catalysts are lurking that could reignite its uptrend. The company submitted an NDA for its Malaria drug sometime in mid-November of 2019. The FDA could decide to approve the NDA without a PDUFA given the need for the product. Furthermore, the company could announce receipt of a priority review voucher at any point. We are 99% sure they are getting this. Moreover, from our network of practicing medical professionals, we know their commercial asset Giapreza is selling. Heart surgeons and ICU doctors, in particular, are liking the drug as its more effective at keeping a patient’s blood pressure up than the contemporary drug Vasostrict (vasopressin). The drug prices are also comparable so Giapreza is a “no brainer” for them. The drug is thus popping up in more and more formularies as doctors are asking their pharmacies for it. Not to mention insiders have bought shares at even higher prices including 3000 @$8.25 shares by LJPC Chief Commercial Officer. Tang Capital management further bought ~3.0M shares recently. He could report a filing soon showing he owns over 50% of the company which would send the stock to the moon. We are feeling short-term pain for long-term gain!
With support at $6.90 and resistance at $7.83, LJPC appears to be poised for a volatile range until news hits. Currently, the price is hovering around $6.90 support with the next level suggesting $6.39. The stock price has found downward pressure since reaching highs in the $8 range and has since been curling up into oversold territory.
The risk-reward profile for LJPC is largely tipped in favor of the bulls. With recent massive insider buys at higher prices, imminent news, growth in revenue, and still no CEO or COO, the company has many things to look forward to. Recently the commercial reorganization shed a lot of excess weight for the company, allowing them to focus on Giapreza. The results, although early, are further bullish indicators. With job postings surfacing on a daily basis, LJPC appears to have re-positioned to deliver immense value to investors and their customers.
MS Money Moves is still very long LJPC
Let’s get this bread!!!!