La Jolla 'evaluates options' after trial failure

Following last week's announcement that it's lead drug failed a Phase III trial,  La Jolla Pharmaceutical announced that it is taking steps to preserve its cash, including a "substantial reduction" in personnel and other operating expenses. The brief statement did not indicate how many of the company's employees would be cut. La Jolla is also evaluating strategic options such as winding down the business or the sale of the company.

La Jolla's stock was hit hard after investors learned that its lupus drug Riquent was being shelved after an interim analysis revealed negative late-stage results. The loss of Riquent--La Jolla's only clinical-stage drug--leaves the company with few assets.

"Following the receipt of the interim efficacy results, we have undertaken activities to rapidly reduce costs, paring down to the minimum necessary to carry out basic operations and address contractual obligations," said La Jolla CEO Deirdre Gillespie. Unfortunately, Riquent was our sole significant asset. The only other program in our research pipeline targeted SSAO inhibitors which are at an early preclinical stage and of minimum value."

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