LA
JOLLA PHARMACEUTICAL COMPANY
REPORTS SECOND QUARTER 2002 FINANCIAL
RESULTS
SAN DIEGO, August 6, 2002 -- La Jolla
Pharmaceutical Company (Nasdaq: LJPC)
reported a net loss for the second quarter
ended June 30, 2002 of $11.4 million
or $0.27 per share (on 42.4 million
weighted average shares) compared to
a net loss of $6.1 million or $0.17
per share (on 35.2 million weighted
average shares) for the second quarter
of 2001. The net loss for the six months
ended June 30, 2002 was $19.5 million
or $0.47 per share (on 41.7 million
weighted average shares) compared to
a net loss of $12.7 million or $0.37
(on 33.9 million weighted average shares)
per share for the same period in 2001.
Research and development expenses increased
to $9.7 million for the three months
and $16.9 million for the six months
ended June 30, 2002 compared to $5.9
million and $12.4 million for the same
periods in 2001, respectively. The increase
was primarily due to expenses associated
with the Company's ongoing Phase III
clinical trial of its lupus drug candidate,
LJP 394, and the Phase I/II clinical
trial of its thrombosis drug candidate,
LJP 1082, which was initiated in November
2001.
Cash, cash equivalents and short-term
investments as of June 30, 2002 were
$74.9 million compared to $47.0 million
as of December 31, 2001. In January
2002, the Company sold 7.0 million shares
of its common stock in a private placement
for net proceeds of approximately $48.3
million.
La Jolla Pharmaceutical Company is
a biotechnology company leading the
development of therapeutics for antibody-mediated
autoimmune diseases afflicting several
million people in the United States
and Europe. The Company is conducting
a Phase III trial of LJP 394 in patients
with lupus kidney disease, a leading
cause of sickness and death in these
patients. The Company is also conducting
a Phase I/II trial of LJP 1082 for the
treatment of antibody-mediated thrombosis,
a condition in which patients suffer
from recurrent stroke, deep-vein thrombosis
and other thrombotic events. The Company's
common stock is traded on The Nasdaq
Stock Market under the symbol LJPC.
For more information about the Company,
visit our Web site: http://www.ljpc.com.
Patients interested in the Phase III
lupus trial may call 1-800-30-LUPUS
for information.
La Jolla Pharmaceutical Company
Condensed Financial Statements
(in thousands except per share data)
Summary of Operations
|
|
|
Three Months
Ended
June 30,
(Unaudited)
|
|
Six Months
Ended
June 30
(Unaudited) ,
|
|
2002
|
2001
|
|
2002
|
2001
|
|
Revenue from collaborative agreement
- related party |
$ -- |
$-- |
|
$ -- |
$-- |
Research and development expense
General and administrative expense
 Total expenses |
9,661
1,788
11,449
|
5,949
1,024
6,973
|
|
16,905
3,201
20,106
|
12,414
1,908
14,322
|
|
Loss from operations |
(11,449) |
(6,973) |
|
(20,106) |
(14,322) |
Interest income
Interest expense |
100
(9)
|
880
(13)
|
|
648
(15)
|
1,680
(13)
|
|
Net loss |
$ (11,358)
 |
$ (6,106)
|
|
$ (19,473)
|
$(12,655)
|
|
Basic and diluted net loss per
share |
$ (0.27) |
$ (0.17) |
|
$ (0.47) |
$ (0.37) |
|
Shares used in computing basic
and diluted net loss per share |
42,356
|
35,150 |
|
41,671 |
33,926 |
Balance Sheet Information
|
|
|
June 30,
2002
(Unaudited)
|
|
December 31,
2001
|
Assets
|
|
Cash, cash equivalents, and short-term
investments |
$ 74,878 |
|
$ 46,960 |
|
Other assets |
6,673
|
|
4,726
|
|
Total assets |
$ 81,551
|
|
$
51,686
|
|
Liabilities and Stockholders'
Equity
|
|
Liabilities |
$ 4,004 |
|
$ 3,141 |
|
Stockholders' equity |
77,547
|
|
48,545
|
|
Total liabilities and stockholders'
equity |
$ 81,551
|
|
$ 51,686
|
Except for historical statements, this
press release contains forward-looking
statements involving significant risks
and uncertainties, and a number of factors,
both foreseen and unforeseen, could cause
actual results to differ materially from
our current expectations. Our analyses
of clinical results of LJP 394, our drug
candidate for the treatment of systemic
lupus erythematosus ("lupus"),
and LJP 1082, our drug candidate for the
treatment of antibody-mediated thrombosis
("thrombosis"), are ongoing
and future analyses could result in a
finding that these drug candidates are
not effective in large patient populations,
do not provide a meaningful clinical benefit
or may reveal a potential safety issue
requiring us to develop new candidates.
Our blood test to measure the binding
affinity for LJP 394 is experimental,
has not been validated by independent
laboratories, may require regulatory approval
and may be necessary for the approval
and the commercialization of LJP 394.
Our other potential drug candidates are
at earlier stages of development and involve
comparable risks. Analysis of our clinical
trials could have negative or inconclusive
results. Any positive results observed
to date may not be indicative of future
results. Even if results are promising,
the U.S. Food and Drug Administration
("FDA") may require additional
clinical trials. The Company's ability
to develop and sell its products in the
future may be affected by the intellectual
property rights of third parties. Additional
risk factors include the uncertainty of:
obtaining required regulatory approvals;
successfully marketing products; receiving
future revenue from product sales or other
sources such as collaborative relationships;
future profitability; the need for additional
financing; our dependence on patents and
other proprietary rights; FDA approval
of our manufacturing facilities; the increase
in capacity of our manufacturing capabilities
for possible commercialization; and our
lack of marketing experience. Readers
are cautioned to not place undue reliance
upon forward-looking statements, which
speak only as of the date hereof, and
we undertake no obligation to update forward-looking
statements to reflect events or circumstances
occurring after the date hereof. Interested
parties are urged to review the risks
described in our other reports and registration
statements filed with the Securities and
Exchange Commission from time to time,
including the report on Form 10-K for
the year ended December 31, 2001
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