La Jolla Pharmaceutical Company (OTCBB:LJPC) (the "Company”) provided an
update today that the Company is actively seeking and evaluating
potential pharmaceutical products for in-licensing or acquisition and
has engaged consultants to determine whether there is any potential for
the further development of Riquent® for the treatment of
lupus. The Company is seeking potential pharmaceutical products that are
small molecules with initial clinical data indicated for cancer,
infectious diseases (but not HIV, HCV or HBV), dermatological
conditions, gastrointestinal diseases and rare or orphan diseases. This
profile is designed to target product opportunities that could be
advanced in a clinically meaningful way with the cash resources
currently available to the Company. Gail Sloan is the contact for this
effort at gail.sloan@ljpc.com.
The Company expects to complete its process of identifying potential
candidates by September 30, 2010, and thereafter focus its attention on
selecting a potential candidate for development.
In May 2010, the Company entered into definitive agreements with
institutional investors and affiliates for a private placement of common
stock, redeemable convertible preferred stock and warrants to purchase
convertible preferred stock totaling up to $16.3 million in gross
proceeds, payable in two tranches and subject to the acquisition of a
suitable drug candidate or the approval of a development plan for
Riquent. The Company expects to use a portion of the initial $6.0
million in proceeds to evaluate potential pharmaceutical products for
in-licensing or acquisition and/or to assess whether development
opportunities for Riquent exist, among other uses. A condition of this
funding is that the Company must consummate a strategic transaction that
is approved by a majority of the investors in the private placement by
February 2011. Upon the acquisition/in-licensing of a product or the
decision to develop, sell or out-license the Company’s Riquent program,
the same investors are required to infuse the additional $10.3 million
into the Company, which would represent the closing of the second
tranche of the offering.
About La Jolla Pharmaceutical Company
La Jolla Pharmaceutical Company is a biopharmaceutical company dedicated
to improving and preserving human life by acquiring and developing
innovative pharmaceutical products. The Company has historically focused
on the development and testing of Riquent as a treatment for lupus
nephritis. The Phase 3 clinical trial for Riquent, called the "ASPEN”
study, was terminated in February 2009, after the Independent Data
Monitoring Board for the ASPEN study informed the Company that they had
completed the first interim efficacy analysis and determined that
continuing the study was futile. Although continuing the ASPEN study was
determined to be futile with respect to the clinical endpoints, Riquent
did demonstrate a statistically significant, dose dependent reduction in
antibodies to double-stranded DNA when compared to placebo and appeared
to be well tolerated. No clinical development activities are ongoing,
and the Company is assessing whether there is any potential for further
development of Riquent.
Forward Looking Statement Safe Harbor
This document contains forward-looking statements as that term is
defined in the Private Securities Litigation Reform Act of 1995.
These statements relate to future events or our future results of
operations. These statements are only predictions and involve known and
unknown risks, uncertainties and other factors, which may cause actual
results to be materially different from these forward-looking
statements. The Company cautions readers not to place undue reliance on
any such forward-looking statements, which speak only as of the date
they were made. Certain of these risks, uncertainties, and other factors
are described in greater detail in the Company’s filings from time to
time with the SEC, all of which are available free of charge on the
SEC’s web site at http://www.sec.gov.
These risks include, but are not limited to, risks relating to the
ability to find suitable candidates for acquisition or the ability to
consummate a strategic transaction within the nine month period
following closing, the ability to secure the maximum offering proceeds,
and risks arising out of covenants and control rights granted to
investors in the private placement. Subsequent written and oral
forward-looking statements attributable to the Company or to persons
acting on its behalf are expressly qualified in their entirety by the
cautionary statements set forth in the Company’s reports filed with the
SEC. The Company expressly disclaims any intent to update any
forward-looking statements.
