EXHIBIT 99.1
LA JOLLA PHARMACEUTICAL COMPANY
REPORTS THIRD QUARTER 2003 FINANCIAL RESULTS
SAN DIEGO, NOVEMBER 6, 2003 -- La Jolla Pharmaceutical Company (Nasdaq: LJPC)
reported a net loss for the third quarter ended September 30, 2003 of $6.9
million, or $0.15 per share (on 47.1 million weighted average shares), compared
to a net loss of $10.7 million, or $0.25 per share (on 42.4 million weighted
average shares), for the third quarter of 2002. The net loss for the nine months
ended September 30, 2003 was $30.4 million, or $0.69 per share (on 44.1 million
weighted average shares), compared to a net loss of $30.2 million, or $0.72 per
share (on 41.9 million weighted average shares), for the same period in 2002.
Research and development expenses decreased to $5.6 million for the three months
ended September 30, 2003 from $9.4 million for the same period in 2002 primarily
due to a decrease in expenses related to the Company's Phase 3 clinical trial of
Riquent(TM) which was completed in December 2002, the open-label follow-on
clinical trial of Riquent which was initiated in July 2002 and closed in April
2003, and the Phase 1/2 clinical trial of LJP 1082 which was completed in
October 2002.
Research and development expenses decreased to $26.0 million for the nine months
ended September 30, 2003 from $26.4 million for the same period in 2002
primarily due to a decrease in expenses related to the completion of the
Company's clinical trials as discussed above. These decreases were offset by an
increase in salaries and wage expense due to the restructuring charges recorded
in May 2003.
Cash, cash equivalents and short-term investments as of September 30, 2003 were
$39.3 million compared to $52.7 million as of December 31, 2002. The Company
anticipates that its existing cash and cash investments, including the net
proceeds of $20.9 million received by the Company from the sale of 8,150,000
shares of its common stock in August 2003, and interest earned thereon, will be
sufficient to fund the Company's operations as currently planned into the fourth
quarter of 2004, assuming the Company does not engage in any significant
clinical trial or commercialization activities.
La Jolla Pharmaceutical Company is a biotechnology company developing
therapeutics for antibody-mediated autoimmune diseases afflicting several
million people in the United States and Europe. The Company is developing
Riquent, formerly known as LJP 394, for the treatment of lupus kidney disease, a
leading cause of sickness and death in patients with lupus. The Company is also
developing 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.
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. Forward-looking statements include those which express a plan,
belief, expectation, estimation, anticipation, intent, contingency, future
development or similar expression. Although we plan to submit a New Drug
Application ("NDA") for Riquent(TM), there is no guarantee that regulatory
authorities will approve Riquent in a timely manner, or at all. Our analyses of
clinical results of Riquent, previously known as 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 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. The analysis of the data from our Phase 3 trial of Riquent has shown
that the trial did not reach statistical significance with respect to its
primary endpoint, time to renal flare. Although we plan to submit an NDA for
Riquent, the results from our clinical trials of Riquent may not ultimately be
sufficient to obtain regulatory clearance to market Riquent either in the U.S.
or Europe, and we may be required to conduct additional clinical studies to
demonstrate the safety and efficacy of Riquent to obtain marketing approval.
There is no guarantee, however, that we will have the necessary resources to
complete any additional trial, that we will elect to conduct an additional
trial, or that any additional trial will sufficiently demonstrate the safety and
efficacy of Riquent. Our blood test to measure the binding affinity for Riquent
is experimental, has not been validated by independent laboratories, may require
regulatory approval, and will likely be necessary for the approval and the
commercialization of Riquent. 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. In any event,
regulatory authorities may require additional clinical trials, or may not
approve our drugs. Our ability to develop and sell our products in the future
may be affected by the intellectual property rights of third parties. Additional
risk factors include the uncertainty and timing of: obtaining required
regulatory approvals, including delays associated with any approvals that we may
obtain; the clear need for additional financing; FDA approval of our
manufacturing facilities and processes; the increase in capacity of our
manufacturing capabilities for possible commercialization; successfully
marketing and selling our products; our lack of manufacturing, marketing, and
sales experience; generating future revenue from product sales or other sources
such as collaborative relationships; future profitability; and our dependence on
patents and other proprietary rights. 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 Annual Report on Form
10-K for the year ended December 31, 2002, and in other reports and registration
statements that we file with the Securities and Exchange Commission from time to
time.
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LA JOLLA PHARMACEUTICAL COMPANY
CONDENSED FINANCIAL STATEMENTS (IN THOUSANDS EXCEPT PER SHARE DATA)
SUMMARY OF OPERATIONS
<Table>
<Caption>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
(UNAUDITED) (UNAUDITED)
2003 2002 2003 2002
--------- --------- --------- ---------
Research and development expense $ 5,633 $ 9,448 $ 25,970 $ 26,353
General and administrative expense 1,413 1,656 4,812 4,857
--------- --------- --------- ---------
Total expenses 7,046 11,104 30,782 31,210
--------- --------- --------- ---------
Loss from operations (7,046) (11,104) (30,782) (31,210)
Interest income 169 425 534 1,073
Interest expense (57) (7) (150) (22)
--------- --------- --------- ---------
Net loss $ (6,934) $ (10,686) $ (30,398) $ (30,159)
========= ========= ========= =========
Basic and diluted net loss per share $ (0.15) $ (0.25) $ (0.69) $ (0.72)
Shares used in computing basic and diluted net loss
per share 47,089 42,402 44,063 41,918
</Table>
BALANCE SHEET INFORMATION
<Table>
<Caption>
SEPTEMBER 30, DECEMBER 31,
2003 2002
------------ ------------
(UNAUDITED)
ASSETS
Cash, cash equivalents, and short-term investments $ 39,311 $ 52,725
Other assets 10,356 9,139
--------- ---------
Total assets $ 49,667 $ 61,864
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities $ 5,100 $ 8,065
Stockholders' equity 44,567 53,799
--------- ---------
Total liabilities and stockholders' equity $ 49,667 $ 61,864
========= =========
</Table>