La Jolla Pharma throws in the towel

In April, La Jolla Pharmaceutical warned that if it wasn't able to raise funds, a merger, license agreement or other collaboration, it would have to liquidate. And with no "knight in shining armor" showing up at the eleventh hour, La Jolla said today that it would ask shareholders to approve a liquidation plan at a special meeting. The company didn't indicate when that meeting would take place.

La Jolla Pharmaceutical's fate has been in question since February after its Phase III lupus drug Riquent was being shelved after an interim analysis revealed negative late-stage results. Riquent was La Jolla's only clinical-stage drug.

According to an SEC filing, La Jolla has resolved the lawsuit filed against the company by former Riquent partner BioMarin Pharmaceutical, and has discharged substantially all of its obligations to creditors. The biotech says that it does not expect that there will be any significant remaining assets available for distribution to the company's stockholders.

- here's the Xconomy brief
- see the SEC filing