La Jolla price target raised to $40 from $27 at Jefferies

Jefferies analyst Eun Yang raised her price target for La Jolla Pharmaceutical to $40 after the company announced positive top-line results from the Phase 3 study of LJPC-501 in patients with catecholamine resistant hypotension. The stock in afternoon trading is up 82%, or $16.36, to $36.23. While a positive outcome was largely expected, a trend toward mortality benefit is encouraging and unexpected, Yang tells investors in a research note, citing her discussions with experts. Her new price target reflects 100% probability for LJPC-501 clinical success and pricing at parity to other hospital-based drugs. Yang keeps a Buy rating on La Jolla.