La Jolla Pharmaceutical Company (SAN DIEGO, California), a clinical-stage pharmaceutical company focused on autoimmune and inflammatory disorders, announced the receipt of estimated aggregate net proceeds of approximately $38 million from the recently completed underwritten public offering of 5,800,000 shares of its common stock, including the expected proceeds from an exercised overallotment option to the underwriters to purchase an additional 870,000 shares. The closing of the overallotment is expected to occur on April 11, 2007. All of the shares were sold by the company and were priced at $6.00 per share.

Earlier in 2007, the company announced positive interim antibody results from its ongoing double-blind, placebo-controlled randomized phase III trial of RiquentR) (abetimus sodium), its drug candidate for the treatment of renal disease in patients with systemic lupus erythematosus. The study is designed to assess the ability of Riquent to prevent or delay the time to renal flare in lupus patients with a history of renal disease and with antibodies to double-stranded DNA (dsDNA), a biomarker generally associated with clinical outcome. Analyses of interim antibody data indicate that patients treated with 900 mg or 300 mg/ week doses of Riquent had greater reductions in antibodies to dsDNA. Published data from previous studies indicated that maintaining antibody reductions in individual patients over time was associated with a significantly reduced renal flare rate. The current data indicate that the higher the Riquent dose the greater the consistency and magnitude of response. The company believes that the greater reductions in antibodies to dsDNA observed with these doses of Riquent imply a greater probability of obtaining positive clinical results from the trial.

Riquent's only known biological activity is the reduction of circulating levels of anti-dsDNA antibodies. Increases in these antibodies are associated with an increased risk of renal flare. Although clinical benefit has not yet been proven, Riquent treatment has significantly reduced these antibody levels in all clinical trials where they were measured. Patient enrollment in this international study recommenced in the third quarter of 2006; completion of enrollment is targeted for the end of 2007.

—A. Techman

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