La Jolla Pharmaceuticals is on the edge of the abyss after announcing in February that it's lupus drug Riquent was a bust. Not long after that the company cut an unspecified number of jobs and said it would evaluate its strategic options.
Now the company has been issued a going concern warning. La Jolla says it doesn't think it can raise the capital needed to sustain its business without a strategic transaction, such as a merger, license agreement or other collaboration. The company plans to reduce its R&D workforce substantially this quarter; however, because La Jolla doesn't know which strategic option it will pursue, the company couldn't say how many more workers would be laid off. Additionally, the biotech may be delisted from the Nasdaq, as its shares are trading below the $1.00 minimum.
"If we are unable to consummate such a transaction, we expect that we would need to cease all operations and wind down. Although we are currently evaluating our strategic alternatives with respect to all aspects of our business, we cannot assure you that any actions that we take would raise or generate sufficient capital to fully address the uncertainties of our financial position," La Jolla said in an SEC filing.
- see the company's release
- here's the filing