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La Jolla Pharmaceutical Company Announces Financial Results for the Three Months Ended March 31, 2020

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SAN DIEGO, May 04, 2020 (GLOBE NEWSWIRE) -- La Jolla Pharmaceutical Company (NASDAQ:LJPC), which is dedicated to the development and commercialization of innovative therapies that improve outcomes in patients suffering from life-threatening diseases, today announced financial results for the three months ended March 31, 2020.

For the three months ended March 31, 2020, GIAPREZA U.S. net sales were $7.6 million, up 73% from the three months ended March 31, 2019 and up 5% from the three months ended December 31, 2019. Vials of GIAPREZA shipped from distributors to hospitals (hospital demand) grew 58% for the three months ended March 31, 2020 as compared to the three months ended March 31, 2019 and decreased 1% as compared to the three months ended December 31, 2019.

La Jolla's net loss for the three months ended March 31, 2020 was $8.6 million, or $0.32 per share, compared to $31.7 million, or $1.17 per share, for the same period in 2019.

As of March 31, 2020, La Jolla had $77.2 million in cash, compared to $87.8 million as of December 31, 2019. Net cash used in operating activities for the three months ended March 31, 2020 was $12.2 million, compared to $32.7 million for the same period in 2019. La Jolla has no debt.

About GIAPREZA

In December 2017, GIAPREZA™ (angiotensin II) was approved by the U.S. Food and Drug Administration (FDA) as a vasoconstrictor indicated to increase blood pressure in adults with septic or other distributive shock. In August 2019, GIAPREZA was approved by the European Commission (EC) for the treatment of refractory hypotension in adults with septic or other distributive shock who remain hypotensive despite adequate volume restitution and application of catecholamines and other available vasopressor therapies. GIAPREZA mimics the body's endogenous angiotensin II peptide, which is central to the renin-angiotensin-aldosterone system, which in turn regulates blood pressure. Prescribing information for GIAPREZA is available at www.giapreza.com. The European Summary of Product Characteristics is available on the EMA website: www.ema.europa.eu/en/medicines/human/EPAR/giapreza. GIAPREZA is marketed in the U.S. by La Jolla Pharmaceutical Company on behalf of La Jolla Pharma, LLC, its wholly owned subsidiary.

IMPORTANT SAFETY INFORMATION

Contraindications

None.

Warnings and Precautions

There is a potential for venous and arterial thrombotic and thromboembolic events in patients who receive GIAPREZA. Use concurrent venous thromboembolism (VTE) prophylaxis.

Adverse Reactions

The most common adverse reactions that were reported in greater than 10% of GIAPREZA-treated patients were thromboembolic events.

Drug Interactions

Angiotensin converting enzyme (ACE) inhibitors may increase response to GIAPREZA. Angiotensin II receptor blockers (ARBs) may reduce response to GIAPREZA.

You are encouraged to report negative side effects of prescription drugs to the FDA. Visit www.fda.gov/medwatch or call 1-800-FDA-1088.

For additional information, please see Full Prescribing Information for the United States and the Summary of Product Characteristics for the European Union.

About LJPC-0118

LJPC-0118 (I.V. artesunate) is La Jolla's investigational product for the treatment of severe malaria. The active pharmaceutical ingredient in LJPC-0118, artesunate, was compared to quinine in patients with severe falciparum malaria infection in two randomized, active-controlled, clinical studies. In both studies, in-hospital mortality in the artesunate group was statistically significantly lower than in-hospital mortality in the quinine group. The U.S. Food and Drug Administration (FDA) granted Breakthrough Therapy designation and Orphan Drug designation for LJPC-0118 for the treatment of malaria in April 2019 and July 2019, respectively. La Jolla filed a New Drug Application (NDA) with the FDA for LJPC-0118 for the treatment of severe malaria in the second half of 2019. Severe malaria is a serious and sometimes fatal disease caused by a parasite that commonly infects a certain type of mosquito. Symptoms include: fever, chills, sweating, hypoglycemia and shock. In 2013, an estimated 2 million cases of severe malaria occurred worldwide. In 2018, an estimated 405,000 people died from malaria worldwide.

About La Jolla Pharmaceutical Company

La Jolla Pharmaceutical Company is dedicated to the development and commercialization of innovative therapies that improve outcomes in patients suffering from life-threatening diseases. In December 2017, GIAPREZA™ (angiotensin II) was approved by the U.S. Food and Drug Administration (FDA) as a vasoconstrictor indicated to increase blood pressure in adults with septic or other distributive shock. In August 2019, GIAPREZA was approved by the European Commission (EC) for the treatment of refractory hypotension in adults with septic or other distributive shock who remain hypotensive despite adequate volume restitution and application of catecholamines and other available vasopressor therapies. LJPC-0118 (artesunate) is La Jolla's investigational product for the treatment of severe malaria. For more information, please visit www.ljpc.com.

Forward-looking Statements

This press release contains "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995. We caution investors that forward-looking statements are based on management's expectations and assumptions as of the date of this press release and involve substantial risks and uncertainties that could cause the actual outcomes to differ materially from what we currently expect. These risks and uncertainties include, but are not limited to, those associated with: GIAPREZA™ (angiotensin II) sales; regulatory actions relating to La Jolla's products by the U.S. Food and Drug Administration (FDA), European Commission and/or other regulatory authorities; cash used in operating activities and our capital requirements; and other risks and uncertainties identified in our filings with the U.S. Securities and Exchange Commission. Forward-looking statements in this press release apply only as of the date made, and we undertake no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances.


LA JOLLA PHARMACEUTICAL COMPANY

Condensed Consolidated Balance Sheets
(in thousands, except par value and share amounts)

  March 31,
2020
  December 31,
2019
  (Unaudited)    
ASSETS      
Current assets:      
Cash $ 77,219     $ 87,820  
Accounts receivable, net 3,552     2,960  
Inventory, net 1,960     2,211  
Prepaid expenses and other current assets 3,383     4,467  
Total current assets 86,114     97,458  
Property and equipment, net 16,038     18,389  
Right-of-use lease asset 15,146     15,491  
Restricted cash 909     909  
Total assets $ 118,207     $ 132,247  
       
LIABILITIES AND SHAREHOLDERS' DEFICIT      
Current liabilities:      
Accounts payable $ 1,895     $ 4,177  
Accrued expenses 7,675     9,312  
Accrued payroll and related expenses 3,649     8,332  
Lease liability, current portion 2,828     2,766  
Total current liabilities 16,047     24,587  
Lease liability, less current portion 25,745     26,481  
Deferred royalty obligation, net 124,392     124,379  
Other noncurrent liabilities 13,692     12,790  
Total liabilities 179,876     188,237  
Shareholders' deficit:      
Common Stock, $0.0001 par value; 100,000,000 shares authorized,
27,276,734 and 27,195,469 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively
3     3  
Series C-12 Convertible Preferred Stock, $0.0001 par value; 11,000 shares authorized, 3,906 shares issued and outstanding at March 31, 2020 and December 31, 2019; and liquidation preference of $3,906 at March 31, 2020 and December 31, 2019 3,906     3,906  
Additional paid-in capital 980,344     977,432  
Accumulated deficit (1,045,922 )   (1,037,331 )
Total shareholders' deficit (61,669 )   (55,990 )
Total liabilities and shareholders' deficit $ 118,207     $ 132,247  


LA JOLLA PHARMACEUTICAL COMPANY

Condensed Consolidated Statements of Operations
(Unaudited)
(in thousands, except per share amounts)

  Three Months Ended March 31,
  2020   2019
Revenue      
Net product sales $ 7,591     $ 4,395  
Total revenue 7,591     4,395  
Operating expenses      
Cost of product sales 716     500  
Research and development 9,183     21,244  
Selling, general and administrative 8,152     12,320  
Total operating expenses 18,051     34,064  
Loss from operations (10,460 )   (29,669 )
Other income (expense)      
Interest expense (2,406 )   (2,729 )
Interest income 190     713  
Other income—related party 4,085      
Total other expense, net 1,869     (2,016 )
Net loss $ (8,591 )   $ (31,685 )
Net loss per share, basic and diluted $ (0.32 )   $ (1.17 )
Weighted-average common shares outstanding, basic and diluted 27,238     27,035  


LA JOLLA PHARMACEUTICAL COMPANY

Condensed Consolidated Statements of Cash Flows
(Unaudited)
(in thousands)

  Three Months Ended March 31,
  2020   2019
Operating activities      
Net loss $ (8,591 )   $ (31,685 )
Adjustments to reconcile net loss to net cash used for operating activities:      
Share-based compensation expense 2,407     6,711  
Depreciation and amortization expense 1,060     1,130  
Loss on disposal of equipment 148     15  
Non-cash interest expense 1,682     2,310  
Non-cash rent expense 345     316  
Changes in operating assets and liabilities:      
Accounts receivable, net (592 )   (618 )
Inventory, net 251     43  
Prepaid expenses and other current assets 1,084     (28 )
Accounts payable (2,282 )   (5,531 )
Accrued expenses (2,404 )   742  
Accrued payroll and related expenses (4,683 )   (5,473 )
Lease liability (674 )   (618 )
Net cash used for operating activities (12,249 )   (32,686 )
Investing activities      
Proceeds from the sale of property and equipment 1,143      
Purchase of property and equipment     (184 )
Net cash provided by (used for) investing activities 1,143     (184 )
Financing activities      
Net proceeds from issuance of common stock under 2013 Equity Plan 305      
Net proceeds from issuance of common stock under ESPP 200     283  
Net cash provided by financing activities 505     283  
Net decrease in cash and restricted cash (10,601 )   (32,587 )
Cash and restricted cash at beginning of period 88,729     173,513  
Cash and restricted cash at end of period $ 78,128     $ 140,926  
Supplemental disclosure of non-cash investing and financing activities:      
Conversion of Series F Convertible Preferred Stock into common stock $     $ 2,737  
Cumulative-effect adjustment from adoption of ASU 2018-07 $     $ (160 )
Initial recognition of right-of-use lease asset $     $ 16,798  
Reconciliation of cash and restricted cash to the condensed consolidated balance sheets
Cash $ 77,219     $ 140,017  
Restricted cash 909     909  
Total cash and restricted cash $ 78,128     $ 140,926  


Company Contacts

Sandra Vedrick
Senior Director, Investor Relations
La Jolla Pharmaceutical Company
Phone: (858) 207-4264 Ext: 1135
Email: svedrick@ljpc.com

and

Dennis Mulroy
Chief Financial Officer
La Jolla Pharmaceutical Company
Phone: (858) 207-4264 Ext: 1040
Email: dmulroy@ljpc.com

 

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