Exhibit 99.1
LA JOLLA PHARMACEUTICAL COMPANY
REPORTS FOURTH QUARTER AND YEAR END 2004 FINANCIAL
RESULTS
SAN DIEGO, MARCH 3, 2005 -- La Jolla Pharmaceutical Company (Nasdaq: LJPC)
reported a net loss for the fourth quarter ended December 31, 2004 of $11.0
million, or $0.18 per share (on 61.4 million weighted average shares), compared
to a net loss of $8.4 million, or $0.17 per share (on 51.0 million weighted
average shares), for the fourth quarter of 2003. The net loss for the twelve
months ended December 31, 2004 was $40.5 million, or $0.68 per share (on 59.7
million weighted average shares), compared to a net loss of $38.8 million, or
$0.85 per share (on 45.8 million weighted average shares), for the same period
in 2003.
Research and development expenses increased to $8.9 million for the three months
ended December 31, 2004 from $6.4 million for the same period in 2003 primarily
due to the purchase of raw materials, which the Company expects to use in the
production of validation lots of Riquent(R) (abetimus sodium) in 2005. The
Company expects to use the validation lots in connection with its ongoing
clinical trial and for other purposes.
Research and development expenses slightly increased to $33.2 million for the
twelve months ended December 31, 2004 from $32.4 million for the same period in
2003. This increase was primarily due to the increase in expenses noted above,
offset by the decreases in costs incurred for clinical studies of Riquent,
including the open-label follow-on clinical trial which was closed in April 2003
and the unblinding and analysis of the data from the Phase 3 trial of Riquent in
the first quarter of 2003.
Cash, cash equivalents and short-term investments as of December 31, 2004 were
$23.1 million compared to $32.1 million as of December 31, 2003. On February 2,
2005, the Company sold 12,250,000 shares of its common stock in a public
offering for net proceeds, after expenses, of approximately $15.8 million.
La Jolla Pharmaceutical Company is a biotechnology company developing
therapeutics for antibody-mediated autoimmune diseases and inflammation
afflicting several million people in the United States and Europe. The Company
is developing Riquent(R) for the treatment of lupus kidney disease, a leading
cause of sickness and death in patients with lupus. The Company is also in the
early stage of developing small molecules to treat various other autoimmune and
inflammatory conditions. The Company's common stock is traded on The Nasdaq
Stock Market under the symbol LJPC. For more information about the Company,
visit its Web site: http://www.ljpc.com
The forward-looking statements in this press release involve 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 that express a plan, belief,
expectation, estimation, anticipation, intent, contingency, future development
or similar expression. The analyses of clinical results of Riquent, previously
known as LJP 394, our drug candidate
for the treatment of systemic lupus erythematosus ("lupus"), including the
results of any trials that are ongoing or that we may initiate in the future,
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 showed that the trial did not reach
statistical significance with respect to its primary endpoint, time to renal
flare, or with respect to the secondary endpoint, time to treatment with
high-dose corticosteroids or cyclophosphamide. The results from our clinical
trials of Riquent, including the results of any trials that are ongoing or that
we may initiate in the future, may not ultimately be sufficient to obtain
regulatory clearance to market Riquent either in the United States or Europe,
and we may be required to conduct additional clinical studies to demonstrate the
safety and efficacy of Riquent in order to obtain marketing approval. There can
be no assurance, however, that we will have the necessary resources to complete
any 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 and will likely be reviewed as part of the Riquent approval
process. 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 clinical trials in addition to our current clinical trial, or may not
approve our drugs. Our ability to develop and sell our products in the future
may be adversely affected by the intellectual property rights of third parties.
Additional risk factors include the uncertainty and timing of: our clear need
for additional financing; obtaining required regulatory approvals, including
delays associated with any approvals that we may obtain; our ability to pass all
necessary FDA inspections; 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; our
ability to make use of the orphan drug designation for Riquent; 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, 2003, 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
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
(UNAUDITED)
2004 2003 2004 2003
---------------------- -----------------------
Research and development expense $ 8,901 $ 6,415 $ 33,169 $ 32,385
General and administrative expense 2,116 2,096 7,568 6,908
-------- ------- -------- --------
Total expenses 11,017 8,511 40,737 39,293
-------- ------- -------- --------
Loss from operations (11,017) (8,511) (40,737) (39,293)
Interest income, net 48 71 193 455
-------- ------- -------- --------
Net loss $(10,969) $(8,440) $(40,544) $(38,838)
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Basic and diluted net loss per share $ (0.18) $ (0.17) $ (0.68) $ (0.85)
Shares used in computing basic and
diluted net loss per share 61,402 50,970 59,704 45,804
BALANCE SHEET INFORMATION
DECEMBER 31, DECEMBER 31,
2004 2003
------------ ------------
ASSETS
Cash, cash equivalents, and short-term
investments $ 23,065 $ 32,133
Other assets 9,961
9,811
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Total assets $ 33,026 $ 41,944
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LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities $ 7,025 $ 5,517
Stockholders' equity 26,001 36,427
--------- ---------
Total liabilities and stockholders' equity $ 33,026 $ 41,944
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