La Jolla Pharmaceutical Co., poised to begin a Phase II efficacy trialof its lead drug for lupus, is hoping to raise about $20 million in apublic offering of 3 million shares to support development of thecompound and other research programs aimed at antibody-mediateddisorders.
The San Diego company registered for the offering a week afterterminating a potential $40 million collaboration with LeoPharmaceutical Products Ltd., of Ballerup, Denmark, fordevelopment of the lupus drug, called LJP 394. (See BioWorldToday, May 28, 1996, p. 1.)
Leo had purchased European and Middle Eastern rights to thecompound. La Jolla kept Leo's $3 million up-front payment andregained complete ownership of the drug. The alliance ended after LaJolla Pharmaceutical disputed Leo's decision to proceed slowly withdevelopment of LJP 394.
La Jolla Pharmaceutical expects to begin a Phase IIb efficacy trial ofthe drug for lupus nephritis during the second half of this year.
Based on the $6.75 closing price of La Jolla Pharmaceutical's stock(NASDAQ:LJPC) Monday, the company would raise more than $20million. Following the equity sales, La Jolla Pharmaceutical will have17 million shares outstanding. La Jolla Pharmaceutical ended the daydown 37 cents.
Underwriters for the offering are Robertson, Stephens & Co. LLC,Pacific Growth Equities Inc. and Van Kasper & Co., all of SanFrancisco, and Vector Securities International Inc., of Deerfield, Ill.
As of March 31, 1996, La Jolla Pharmaceutical had more than $20million in cash and a net loss for the first quarter of the year of $3million.
The company's lead product, LJP 394, is derived from its ToleranceTechnology, which is designed to make molecules that bind to thesurface of B cells and shut down production of disease-causingantibodies.
LJP 394 targets specific B cells that produce antibodies to double-stranded DNA, which are believed to cause kidney disease, the mainkiller of lupus patients.
La Jolla Pharmaceutical also is using its technology to generatecompounds that target antibody-mediated stroke and other diseases,such as deep vein thrombosis and recurrent fetal loss. n
-- Charles Craig
(c) 1997 American Health Consultants. All rights reserved.