A Good Start Of The Week For La Jolla Pharmaceutical Co. (OTCBB:LJPC)
[[tagnumber 0]]The price of La Jolla Pharmaceutical Co. (OTCBB:LJPC)‘s stock didn‘t attract a lot of investor attention, judging by the volume of trades in recent sessions and the price was swaying in both ways. Things, however, are changing and LJPC is heading in the right direction. [[tagnumber 1]]A reminder of the recently acquired financing was all it took for LJPC to start heading up, after they closed last week in the red. This week started of very well for the ticker as it moved a whopping 43.57% in Monday on more than 10 times its average volume. The total amount of shares that were traded came at 1.3 million, but generated only $133 thousand in trade value with its low price.[[tagnumber 2]] [[tagnumber 1]]Yesterday, things went better as the ticker gained another 39.13% in value and made a much bigger jump in volume. When you look at the intraday chart you will see that the biggest amount of traded stock was recorded shortly after the stock reached the day‘s peak of $0.215 and quickly brought the price down.[[tagnumber 2]] [[tagnumber 1]]The dumping, however, didn‘t manage to do so much damage and LJPC closed the session with a price of $0.16 per share. The total amount of shares that switched hands came at a staggering 3.39 million and helped generate a healthy trade value of $570 thousand.[[tagnumber 2]] [[tagnumber 1]][[tagnumber 8]]This comes after the company reminded investors that they recently acquired $10 million financing, which will be used to further the study and development of their chronic kidney disease (CKD) treatment. However, the financing was acquired through the sale of a significant amount of stock and is likely to cause dilution.[[tagnumber 2]] [[tagnumber 1]]An article on Seeking Alpha regarding the investment of Baker Bros. In several biotech stocks further touted the ticker, but revealed that there is still much work to be done before the final product is approved and available.[[tagnumber 2]] [[tagnumber 1]]With one of their treatments in Phase II clinical trial and the other preparing for Phase I it is likely that it will be years before LJPS‘s receives approval and the possibility of them not being approved at all still remains. Not to mention that the deadlines that medical stocks announce are almost always extended.[[tagnumber 2]] [[tagnumber 1]]One stock with such trouble is Guided Therapeutics, Inc. (OTCBB:GTHP), who received questions about their LuViva® advanced cervical scam, which will make the approval process longer than expected. Another similar case is Titan Pharmaceuticals, Inc. (OTCBB:<a href=“http://www.thehotpennystocks.com/Stock–Quotes/?stock=TTNP“>TTNP</a>), who are getting ready for a meeting with the FDA to discuss issues with their opioid dependence treatment.[[tagnumber 2]] [[tagnumber 1]][[tagnumber 17]]A worst case scenario that we have seen with companies that have had their treatment approved is Affymax, Inc. (OTCMKTS:<a href=“http://www.thehotpennystocks.com/Stock–Quotes/?stock=AFFY“>AFFY</a>), whose drug OMONTYS used for the treatment of anemia associated with CKD was voluntarily recalled, because of side effects that even caused several fatalities. Needless to say the stock‘s price plummeted from its previous $20+ levels and is currently struggling to stay above $1 per share.[[tagnumber 2]] [[tagnumber 1]]All in all medical companies that are in development are risky investment choices and we consider the possibility of LJPC deflating. This is the exact reason for which we advise you to do a lot of due diligence and weigh out the risks before aiming at such tickers.[[tagnumber 2]]
