La Jolla Pharmaceutical Company Provides Update on Search for Clinical Products to In-License or Acquire

SAN DIEGO--(BUSINESS WIRE)--La Jolla Pharmaceutical Company (OTCBB:LJPC) (the “Company”) provided an update today that the Company is actively seeking and evaluating potential pharmaceutical products for in-licensing or acquisition and has engaged consultants to determine whether there is any potential for the further development of Riquent^® for the treatment of lupus. The Company is seeking potential pharmaceutical products that are small molecules with initial clinical data indicated for cancer, infectious diseases (but not HIV, HCV or HBV), dermatological conditions, gastrointestinal diseases and rare or orphan diseases. This profile is designed to target product opportunities that could be advanced in a clinically meaningful way with the cash resources currently available to the Company. Gail Sloan is the contact for this effort at [e-mail].

The Company expects to complete its process of identifying potential candidates by September 30, 2010, and thereafter focus its attention on selecting a potential candidate for development.

In May 2010, the Company entered into definitive agreements with institutional investors and affiliates for a private placement of common stock, redeemable convertible preferred stock and warrants to purchase convertible preferred stock totaling up to $16.3 million in gross proceeds, payable in two tranches and subject to the acquisition of a suitable drug candidate or the approval of a development plan for Riquent. The Company expects to use a portion of the initial $6.0 million in proceeds to evaluate potential pharmaceutical products for in-licensing or acquisition and/or to assess whether development opportunities for Riquent exist, among other uses. A condition of this funding is that the Company must consummate a strategic transaction that is approved by a majority of the investors in the private placement by February 2011. Upon the acquisition/in-licensing of a product or the decision to develop, sell or out-license the Company’s Riquent program, the same investors are required to infuse the additional $10.3 million into the Company, which would represent the closing of the second tranche of the offering.

About La Jolla Pharmaceutical Company

La Jolla Pharmaceutical Company is a biopharmaceutical company dedicated to improving and preserving human life by acquiring and developing innovative pharmaceutical products. The Company has historically focused on the development and testing of Riquent as a treatment for lupus nephritis. The Phase 3 clinical trial for Riquent, called the “ASPEN” study, was terminated in February 2009, after the Independent Data Monitoring Board for the ASPEN study informed the Company that they had completed the first interim efficacy analysis and determined that continuing the study was futile. Although continuing the ASPEN study was determined to be futile with respect to the clinical endpoints, Riquent did demonstrate a statistically significant, dose dependent reduction in antibodies to double-stranded DNA when compared to placebo and appeared to be well tolerated. No clinical development activities are ongoing, and the Company is assessing whether there is any potential for further development of Riquent.

Forward Looking Statement Safe Harbor

This document contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements relate to future events or our future results of operations. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, which may cause actual results to be materially different from these forward-looking statements. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date they were made. Certain of these risks, uncertainties, and other factors are described in greater detail in the Company’s filings from time to time with the SEC, all of which are available free of charge on the SEC’s web site at http://www.sec.gov. These risks include, but are not limited to, risks relating to the ability to find suitable candidates for acquisition or the ability to consummate a strategic transaction within the nine month period following closing, the ability to secure the maximum offering proceeds, and risks arising out of covenants and control rights granted to investors in the private placement. Subsequent written and oral forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by the cautionary statements set forth in the Company’s reports filed with the SEC. The Company expressly disclaims any intent to update any forward-looking statements.