No dreams are biotech, but not everyone can be a biopharma

Biopharma, bigpharma, should be the dream

Biopharma, bigpharma, should be the dream

Without dreams, what is the difference between it and salted fish? However, the road to dreams has never been easy, and biotech is even more so

Fast forward to 2017, when La Jolla, a biotech company that had been in existence for nearly 30 years, finally ushered in the first approved product, Giapreza

At that time, the market was full of expectations, and sales of the product were expected to reach $

But it backfired

But it backfired

In July, Due to the long-term inability of commercialization, La Jolla Pharma chose to sell it for

This also tells us once again that if we cannot successfully commercialize, what awaits biotechs will be the fate of selling themselves

/ 01 // 01 // 01 /

The product was approved for marketing,

The product is approved for listing, the product is approved for listing, the product is approved for listing,

The stock price goes all the way down

The stock price goes all the way down The stock price goes all the way down

The phrase "see the light dies" is the most appropriate way to describe the commercialization of La Jolla
Pharmaceuticals.

The phrase "see the light dies" is the most appropriate way to describe the commercialization of La Jolla
Pharmaceuticals.

Before the product went to market, the market was extremely optimistic
about La Jolla Pharmaceuticals.
Because the company has drawn a broad picture
for the market.

Before the product went to market, the market was extremely optimistic
about La Jolla Pharmaceuticals.
Because the company has drawn a broad picture
for the market.

According to La Jolla Pharma, about 960,000 Americans need to vascularly pressurize
with catecholamines each year.
However, the product is only effective for about two-thirds of people, and 360,000 patients need vasopressors, and there is a broad blue ocean market
behind the clinical unmet needs.

According to La Jolla Pharma, about 960,000 Americans need to vascularly pressurize
with catecholamines each year.
However, the product is only effective for about two-thirds of people, and 360,000 patients need vasopressors, and there is a broad blue ocean market
behind the clinical unmet needs.

Indeed, this logic was verified by Vasostrict, who was also the "predecessor" of vasopressors
.
Vasostrict was approved for listing in the second quarter of 2014 and generated sales of $
343 million in its second complete year of listing (2016).

Indeed, this logic was verified by Vasostrict, who was also the "predecessor" of vasopressors
.
Vasostrict was approved for listing in the second quarter of 2014 and generated sales of $
343 million in its second complete year of listing (2016).

Vasostrict, which performed well, only filled part of the gap in the market
.
La Jolla Pharma believes that there are still 150,000-230,000 people who do not respond to all approved vapressors, leaving a considerable potential market
for its core product, Giapreza.
At least in theory
.

Vasostrict, which performed well, only filled part of the gap in the market
.
La Jolla Pharma believes that there are still 150,000-230,000 people who do not respond to all approved vapressors, leaving a considerable potential market
for its core product, Giapreza.
At least in theory
.

The company's beautiful blueprint, coupled with the continuous advancement of clinical practice, after the listing of La Jolla pharmaceutical market value gradually increased, once stable above
$1 billion.

The company's beautiful blueprint, coupled with the continuous advancement of clinical practice, after the listing of La Jolla pharmaceutical market value gradually increased, once stable above
$1 billion.

But in practice, Giapreza's sales were completely disappointing:

But in practice, Giapreza's sales were completely disappointing:

In the second full year (2019) of the listing, sales were only $23.
1 million; Sales growth in 2020 was limited at $29.
3 million, which cannot be blamed on the pandemic
.
In 2021, when the impact of the epidemic on sales in the United States has faded, Giapreza's sales are only $
33.
4 million.

In the second full year (2019) of the listing, sales were only $23.
1 million; Sales growth in 2020 was limited at $29.
3 million, which cannot be blamed on the pandemic
.
In 2021, when the impact of the epidemic on sales in the United States has faded, Giapreza's sales are only $
33.
4 million.

Dismal sales have gradually erased investor confidence
.
Since the third quarter of 2018, La Jolla Pharmaceutical's stock price has fallen by more than 90%
as the performance of a single quarter has not seen a significant improvement in the past quarter.

Dismal sales have gradually erased investor confidence
.
Since the third quarter of 2018, La Jolla Pharmaceutical's stock price has fallen by more than 90%
as the performance of a single quarter has not seen a significant improvement in the past quarter.

La Jolla Pharmaceuticals fully explains what is called "high open low walk"
.

La Jolla Pharmaceuticals fully explains what is called "high open low walk"
.

/ 02 /

/ 02 // 02 // 02 /

Behind the evaporation of 90% of the market value,

Behind the evaporation of 90% of the market value, behind the evaporation of 90% of the market value, behind the evaporation of the market value of 90%,

The unavoidable tragedy of commercialization

The unavoidable death of commercialization The unavoidable death of commercialization The unavoidable death of commercialization

What caused the demise of La Jolla? This is not caused by a single reason, but the core is still the nightmare of most biotech - the commercialization problem
.

What caused the demise of La Jolla? This is not caused by a single reason, but the core is still the nightmare of most biotech - the commercialization problem
.

In a way, La Jolla Pharmaceuticals is also overconfident in its ability to commercialize
.

In a way, La Jolla Pharmaceuticals is also overconfident in its ability to commercialize
.

First, the size of the market may be exaggerated
.
Giapreza's 150,000-230,000 patient population is based on a total treatment need of 960,000
.
But in practice, the size of the patients treated is much smaller than the theoretical value
.

First, the size of the market may be exaggerated
.
Giapreza's 150,000-230,000 patient population is based on a total treatment need of 960,000
.
But in practice, the size of the patients treated is much smaller than the theoretical value
.

According to a short-selling article about La Jolla Pharmaceuticals, "Red Flags and Heavily Overvalued Markets Create Convincing Bears," Giapreza is suitable for about 95,000 people based on historical data, doctor surveys, reports and journals
, which is significantly lower than the company's estimates.

According to a short-selling article about La Jolla Pharmaceuticals, "Red Flags and Heavily Overvalued Markets Create Convincing Bears," Giapreza is suitable for about 95,000 people based on historical data, doctor surveys, reports and journals
, which is significantly lower than the company's estimates.

Second, Giapreza lacks hard-core clinical data
.
Although in terms of vascular compression, Giapreza showed an extremely good therapeutic effect
.
As shown in the figure below, its phase III clinical data conclude that Giapreza significantly improved the blood pressure response
.

Second, Giapreza lacks hard-core clinical data
.
Although in terms of vascular compression, Giapreza showed an extremely good therapeutic effect
.
As shown in the figure below, its phase III clinical data conclude that Giapreza significantly improved the blood pressure response
.

Unfortunately, the Giapreza treatment group didn't have much of an advantage in terms
of survival.
According to this phase III clinical outcome, the mortality rate from treatment to day 28 of Giapreza was 46% and of placebo was 54%.

It seems that the ultimate clinical benefit of Giapreza is not as eye-catching
as the blood pressure response data.

Unfortunately, the Giapreza treatment group didn't have much of an advantage in terms
of survival.
According to this phase III clinical outcome, the mortality rate from treatment to day 28 of Giapreza was 46% and of placebo was 54%.

It seems that the ultimate clinical benefit of Giapreza is not as eye-catching
as the blood pressure response data.

Finally, and most fundamentally, La Jolla's commercialization capacity is too weak
.
This can be seen
in terms of the speed of admission.

Finally, and most fundamentally, La Jolla's commercialization capacity is too weak
.
This can be seen
in terms of the speed of admission.

On an August 2018 conference call, management mentioned that they had obtained prescription approvals at 200 hospitals, while their target was 1,200 hospitals
.
Completing this coverage density will help companies cover 80%
of the total number of patients.

On an August 2018 conference call, management mentioned that they had obtained prescription approvals at 200 hospitals, while their target was 1,200 hospitals
.
Completing this coverage density will help companies cover 80%
of the total number of patients.

But the reality is that by the end of 2021, La Jolla has only covered 492 U.
S.
hospitals, less than half
of the expected target.
From this point of view, it is not difficult to understand that the commercialization of Giapreza is less than expected
.

But the reality is that by the end of 2021, La Jolla has only covered 492 U.
S.
hospitals, less than half
of the expected target.
From this point of view, it is not difficult to understand that the commercialization of Giapreza is less than expected
.

In fact, La Jolla's weak commercialization capabilities are also reflected
in its second product.
In 2020, in order to generate revenue for the company, La Jolla Pharmaceuticals spent a lot of money to buy the antibiotic Xerava
.

In fact, La Jolla's weak commercialization capabilities are also reflected
in its second product.
In 2020, in order to generate revenue for the company, La Jolla Pharmaceuticals spent a lot of money to buy the antibiotic Xerava
.

Xerava was approved for complex intra-abdominal infections, which have a natural synergy
with Giapreza.
Moreover, Xerava's performance is outstanding, not inferior to that of the more commonly used antibiotics.

Xerava was approved for complex intra-abdominal infections, which have a natural synergy
with Giapreza.
Moreover, Xerava's performance is outstanding, not inferior to that of the more commonly used antibiotics.

But Xerava's sales figures remain poor: Revenue barely hit $
10.
1 million in 2021.
Such Xerava is also difficult to become the second growth curve
of La Jolla Pharmaceuticals.

But Xerava's sales figures remain poor: Revenue barely hit $
10.
1 million in 2021.
Such Xerava is also difficult to become the second growth curve
of La Jolla Pharmaceuticals.

And this may be the last straw
that crushed La Jolla Pharmaceuticals.

And this may be the last straw
that crushed La Jolla Pharmaceuticals.

/ 03 /

/ 03 // 03 // 03 /

No dreams no biotech,

No dream no biotech, no dream no biotech, no dream no biotech,

But not everyone can be a biopharma

But not everyone can be a biopharma but not everyone can be a biopharma but not everyone can be a biopharma

Like many biotechs, La Jolla's biggest dream may be to become biopharma
.
To this end, the company has made many efforts
in commercialization.

Like many biotechs, La Jolla's biggest dream may be to become biopharma
.
To this end, the company has made many efforts
in commercialization.

The most emblematic of its determination is that in 2019, the company abandoned any product development and focused on commercialization, focusing on the sales
of Giapreza and Xerava.

The most emblematic of its determination is that in 2019, the company abandoned any product development and focused on commercialization, focusing on the sales
of Giapreza and Xerava.

Obviously, this is a big gamble
for La Jolla Pharmaceuticals.

Obviously, this is a big gamble
for La Jolla Pharmaceuticals.

Unfortunately, after three years of hard work, sales of La Jolla Pharmaceuticals are still not improving
.
However, this is not surprising, in the case of product data does not have obvious advantages, channel capabilities are undoubtedly the key
to product volume.

Unfortunately, after three years of hard work, sales of La Jolla Pharmaceuticals are still not improving
.
However, this is not surprising, in the case of product data does not have obvious advantages, channel capabilities are undoubtedly the key
to product volume.

However, the channel was not built in one day, which is also the key
to the strong Hengqiang of the big pharmaceutical companies.
La Jolla's antibiotic Xerava directly opposes Pfizer, AstraZeneca and other large pharmaceutical companies
.
In this case, La Jolla pharmaceuticals failed to play the synergistic effect of the product, and it seems understandable
to take advantage of it.

However, the channel was not built in one day, which is also the key
to the strong Hengqiang of the big pharmaceutical companies.
La Jolla's antibiotic Xerava directly opposes Pfizer, AstraZeneca and other large pharmaceutical companies
.
In this case, La Jolla pharmaceuticals failed to play the synergistic effect of the product, and it seems understandable
to take advantage of it.

In fact, this is not what happened
to La Jolla Alone.
According to the Industrial Securities Research Report, the peak revenue of listed products of large pharmaceutical companies is 50% higher than that of small pharmaceutical companies, and the peak sales of products of most small pharmaceutical companies are lower than expected
.

In fact, this is not what happened
to La Jolla Alone.
According to the Industrial Securities Research Report, the peak revenue of listed products of large pharmaceutical companies is 50% higher than that of small pharmaceutical companies, and the peak sales of products of most small pharmaceutical companies are lower than expected
.

Therefore, in the decades of biopharmaceutical development history in the United States, most Biotechs have long understood a truth: selling themselves is the most correct choice
.

Therefore, in the decades of biopharmaceutical development history in the United States, most Biotechs have long understood a truth: selling themselves is the most correct choice
.

Only by living can we be qualified to talk about dreams
.
The biopharmaceutical industry in the United States has long formed a clear division of labor, biotech is mainly responsible for research and development, and big pharma relies on buying and buying to promote back-end clinical and commercialization
.

Only by living can we be qualified to talk about dreams
.
The biopharmaceutical industry in the United States has long formed a clear division of labor, biotech is mainly responsible for research and development, and big pharma relies on buying and buying to promote back-end clinical and commercialization
.

La Jolla Pharmaceutical, which does not believe in evil, tried to break a path without obvious advantages in products, but eventually paid a tragic price
.

La Jolla Pharmaceutical, which does not believe in evil, tried to break a path without obvious advantages in products, but eventually paid a tragic price
.

Interestingly, after La Jolla Pharmaceuticals announced its sale, the stock price rose 81% in response, and the latest market value reached $157 million, exceeding the purchase price
.

Interestingly, after La Jolla Pharmaceuticals announced its sale, the stock price rose 81% in response, and the latest market value reached $157 million, exceeding the purchase price
.

This can also be regarded as a successful end for the biotech that has been established for more than 30 years
.

This can also be regarded as a successful end for the biotech that has been established for more than 30 years
.