EXHIBIT 99.1
LA JOLLA PHARMACEUTICAL COMPANY
REPORTS SECOND QUARTER AND YEAR-TO-DATE
2005 FINANCIAL RESULTS
SAN DIEGO, AUGUST 4, 2005 -- La Jolla Pharmaceutical Company (Nasdaq: LJPC)
reported a net loss for the second quarter ended June 30, 2005 of $6.3 million,
or $0.08 per share (on 73.9 million weighted average shares), compared to a net
loss of $8.4 million, or $0.14 per share (on 61.2 million weighted average
shares), for the second quarter of 2004. The net loss for the six months ended
June 30, 2005 was $15.4 million, or $0.21 per share (on 71.7 million weighted
average shares), compared to a net loss of $16.7 million, or $0.29 per share (on
58.0 million weighted average shares), for the same period in 2004.
Total operating expenses decreased to $6.4 million for the three months ended
June 30, 2005 from $8.5 million for the same period in 2004 primarily due to the
cost savings related to the termination of 60 employees in connection with the
March 2005 restructuring. Total operating expenses decreased to $15.7 million
for the six months ended June 30, 2005 from $16.8 million for the same period in
2004. The reduction was primarily due to a decrease in expenses related to the
purchase of raw materials for the production of Riquent(R), the Company's drug
candidate for lupus kidney disease, partially offset by both the cost of
termination benefits, mainly severance, of approximately $1.5 million in
connection with the March 2005 restructuring and an increase in expenses
associated with the clinical benefit trial of Riquent, which was initiated in
August 2004.
Research and development expenses decreased to $5.2 million for the three months
ended June 30, 2005 from $6.8 million for the same period in 2004 primarily due
to the cost savings related to the March 2005 restructuring. Also contributing
to the decrease was the decrease in the purchase of raw materials offset by an
increase in clinical trial related expenses as noted above.
Research and development expenses decreased to $12.5 million for the six months
ended June 30, 2005 from $13.6 million for the same period in 2004 primarily due
to the decrease in the purchase of raw materials noted above. This decrease was
partially offset by the cost of termination benefits, mainly severance, of
approximately $1.0 million recorded in connection with the March 2005
restructuring and the increase in clinical trial related expenses discussed
above.
Cash, cash equivalents and short-term investments as of June 30, 2005 were $21.8
million compared to $23.1 million as of December 31, 2004. 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 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. Although we are seeking additional funds from the sale of
securities or a collaborative partner to support the development of Riquent
(abetimus sodium) and our small molecule inflammation program, we cannot
guarantee that we will be successful in obtaining any additional funds or
establishing any collaborative agreements or that the terms of any potential
agreements will be on favorable terms or result in the payment of significant
funds to us. The analyses of clinical results of Riquent, previously known as
LJP 394, our drug candidate for the treatment of systemic lupus erythematosus
("lupus") and any other drug candidate that we may develop, 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 current or future trials or that any such trials 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 also 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 or a collaborative agreement; 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 Quarterly Report on Form 10-Q for the quarter
ended March 31, 2005, 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 CONSOLIDATED FINANCIAL STATEMENTS (IN THOUSANDS EXCEPT PER SHARE DATA)
<Table>
<Caption>
SUMMARY OF OPERATIONS
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
(UNAUDITED) (UNAUDITED)
2005 2004 2005 2004
---------------------- ----------------------
Research and development expenses $ 5,182 $ 6,811 $ 12,530 $ 13,612
General and administrative expenses 1,235 1,654 3,143 3,172
-------- -------- -------- --------
Total expenses 6,417 8,465 15,673 16,784
-------- -------- -------- --------
Loss from operations (6,417) (8,465) (15,673) (16,784)
Interest income, net 163 97 277 41
-------- -------- -------- --------
Net loss $ (6,254) $ (8,368) $(15,396) $(16,743)
======== ======== ======== ========
Basic and diluted net loss per share $ (0.08) $ (0.14) $ (0.21) $ (0.29)
Shares used in computing basic and
diluted net loss per share 73,905 61,213 71,667 58,035
</Table>
<Table>
<Caption>
BALANCE SHEET INFORMATION
JUNE 30, DECEMBER 31,
2005 2004
(UNAUDITED)
------------ ------------
ASSETS
Cash, cash equivalents, and short-term investments
$ 21,792 $ 23,065
Other assets 9,164 9,961
------------ ------------
Total assets $ 30,956 $ 33,026
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities $ 4,334 $ 7,025
Stockholders' equity 26,622 26,001
------------ ------------
Total liabilities and stockholders' equity $ 30,956 $ 33,026
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</Table>