La Jolla Pharmaceutical Company (LJPC, Financial) filed Quarterly Report for the period ended 2010-06-30.
La Jolla Pharmaceutical Company has a market cap of $2.83 million; its shares were traded at around $0 with and P/S ratio of 0.35.
For the three months ended June 30, 2010, we incurred virtually no research and development expense compared to a credit of $0.1 million for the same period in 2009. For the six months ended June 30, 2010, research and development expense was similarly insignificant compared to $9.8 million for the same period in 2009, as a result of the discontinuation of the Riquent Phase 3 ASPEN study which had been actively in process during part of that period.
For the three and six months ended June 30, 2010, general and administrative expense decreased to $0.9 million and $2.7 million, respectively, from $2.1 million and $4.6 million for the same periods in 2009. The decreases for the three and six months ended June 30, 2010 are primarily the result of decreases of $0.8 million and $1.2 million, respectively, due to the termination of a majority of our workforce in April 2009, with the remainder due to decreases in consulting and legal services related to our restructuring activities in the first two quarters of 2009.
Non-operating income as a result of adjustments to the estimated fair value of derivative liabilities for the three and six months ended June 30, 2010 was $3.0 million. The derivative liabilities issued in the May 2010 financing were remeasured at their estimated fair value as of June 30, 2010 resulting in a decrease in value from their issuance based upon changes in the inputs to the valuation models used to estimate the liabilities. This resulted in $3.0 million of non-operating income for the three and six months ended June 30, 2010.
From inception through June 30, 2010, we have incurred a cumulative net loss of approximately $429.2 million and have financed our operations through public and private offerings of securities, revenues from collaborative agreements, equipment financings and interest income on invested cash balances. From inception through June 30, 2010, we have raised approximately $417.0 million in net proceeds from sales of equity securities.
At June 30, 2010, we had $8.1 million in cash, of which up to $5.2 million, plus accrued dividends, could be required to be paid upon the triggering of a redemption right under our outstanding preferred securities, as compared to $4.3 million of cash at December 31, 2009. Our working capital at June 30, 2010 was a deficit of $0.4 million, as compared to $4.2 million at December 31, 2009 and is largely driven by our derivative liability obligations which will likely change in value and the change in value can be significant, either up or down, based on changes in the inputs to the valuation models used to derive them. The increase in cash resulted from the net proceeds of $6.0 million received in the May 2010 financing offset by the use of our financial resources to fund our general corporate operations.
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La Jolla Pharmaceutical Company has a market cap of $2.83 million; its shares were traded at around $0 with and P/S ratio of 0.35.
Highlight of Business Operations:
In May 2010, we sold approximately 29.0 million shares of common stock and 5,134 shares of redeemable convertible preferred stock, for aggregate gross proceeds of approximately $6.0 million in a private placement. The investors also received a three-year warrant to purchase, for cash, an additional 10,268 shares of convertible preferred stock for an aggregate exercise price of approximately $10.3 million. The investors will be required to exercise the warrants and purchase the additional shares of convertible preferred stock in the event that the Company consummates a Strategic Transaction (as defined in the Certificate of Designations) approved by the investors.For the three months ended June 30, 2010, we incurred virtually no research and development expense compared to a credit of $0.1 million for the same period in 2009. For the six months ended June 30, 2010, research and development expense was similarly insignificant compared to $9.8 million for the same period in 2009, as a result of the discontinuation of the Riquent Phase 3 ASPEN study which had been actively in process during part of that period.
For the three and six months ended June 30, 2010, general and administrative expense decreased to $0.9 million and $2.7 million, respectively, from $2.1 million and $4.6 million for the same periods in 2009. The decreases for the three and six months ended June 30, 2010 are primarily the result of decreases of $0.8 million and $1.2 million, respectively, due to the termination of a majority of our workforce in April 2009, with the remainder due to decreases in consulting and legal services related to our restructuring activities in the first two quarters of 2009.
Non-operating income as a result of adjustments to the estimated fair value of derivative liabilities for the three and six months ended June 30, 2010 was $3.0 million. The derivative liabilities issued in the May 2010 financing were remeasured at their estimated fair value as of June 30, 2010 resulting in a decrease in value from their issuance based upon changes in the inputs to the valuation models used to estimate the liabilities. This resulted in $3.0 million of non-operating income for the three and six months ended June 30, 2010.
From inception through June 30, 2010, we have incurred a cumulative net loss of approximately $429.2 million and have financed our operations through public and private offerings of securities, revenues from collaborative agreements, equipment financings and interest income on invested cash balances. From inception through June 30, 2010, we have raised approximately $417.0 million in net proceeds from sales of equity securities.
At June 30, 2010, we had $8.1 million in cash, of which up to $5.2 million, plus accrued dividends, could be required to be paid upon the triggering of a redemption right under our outstanding preferred securities, as compared to $4.3 million of cash at December 31, 2009. Our working capital at June 30, 2010 was a deficit of $0.4 million, as compared to $4.2 million at December 31, 2009 and is largely driven by our derivative liability obligations which will likely change in value and the change in value can be significant, either up or down, based on changes in the inputs to the valuation models used to derive them. The increase in cash resulted from the net proceeds of $6.0 million received in the May 2010 financing offset by the use of our financial resources to fund our general corporate operations.
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