Why La Jolla (LJPC) Is Surging Today

Tickers in this article: LJPC

NEW YORK (TheStreet) -- La Jolla Pharmaceutical stock is seeing an astronomical rise on Tuesday on the news that the clinical trial for its galectin inhibitor -- used to treat chronic kidney disease -- was a success.

CEO George Tidmarsh said, "We are obviously delighted with the results. We hope to use these results as a platform for further investigation not only in chronic kidney disease but also in other diseases where tissue fibrosis plays a central role."

The stock is up $7.43, or 68%, and was trading at $18.33 by early afternoon.

In-Depth Analysis:  LJPC Clinical Trials

While investors are excited about the potential of a drug that can successfully treat the 50 million Americans who suffer from kidney disease, La Jolla's clinical trials is not without its detractors. Concerns include insufficient time allotted for observation and the ineffectiveness of higher doses of the drug on patients.

The Street's Adam Feuerstein has been covering La Jolla in depth for months and has a unique take on the news.

Read Adam's Take:  La Jolla's Kidney Drug Is Statistical Noise

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STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.