<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
MARK ONE
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _________ TO _______
Commission File Number: 0-24274
LA JOLLA PHARMACEUTICAL COMPANY
(Exact Name of Registrant as Specified in its Charter)
DELAWARE 33-0361285
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
6455 NANCY RIDGE DRIVE 92121
SAN DIEGO, CA (Zip Code)
(Address of Principal Executive Offices)
Registrant's Telephone Number, Including Area Code: (619) 452-6600
Indicate by check mark whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. YES [X] NO [ ]
The number of shares of the Registrant's common stock, $.01 par value,
outstanding at March 31, 1998 was 18,168,607.
<PAGE> 2
LA JOLLA PHARMACEUTICAL COMPANY
FORM 10-Q
QUARTERLY REPORT
INDEX
<TABLE>
<S> <C>
COVER PAGE ...................................................................... 1
INDEX ........................................................................... 2
PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements (Unaudited)
Balance Sheets as of March 31, 1998 and December 31, 1997 ................. 3
Statements of Operations for the three months ended March 31, 1998 and 1997 4
Statements of Cash Flows for the three months ended March 31, 1998 and 1997 5
Notes to Financial Statements ............................................. 6
ITEM 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations ............................................. 7
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk ........ *
PART II. OTHER INFORMATION
ITEM 1. Legal Proceedings ................................................. *
ITEM 2. Changes in Securities ............................................. *
ITEM 3. Defaults upon Senior Securities ................................... *
ITEM 4. Submission of Matters to a Vote of Security Holders ............... *
ITEM 5. Other information ................................................. *
ITEM 6. Exhibits and Reports on Form 8-K .................................. 10
SIGNATURE ....................................................................... 13
</TABLE>
* No information provided due to inapplicability of item.
2
<PAGE> 3
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
LA JOLLA PHARMACEUTICAL COMPANY
BALANCE SHEETS
(in thousands)
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
------------ ------------
(Unaudited) (Note)
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 15,984 $ 11,999
Short-term investments 8,597 14,979
Other current assets 440 658
------------ ------------
Total current assets 25,021 27,636
Property and equipment, net 1,194 946
Patent costs and other assets, net 1,153 1,064
------------ ------------
Total Assets $ 27,368 $ 29,646
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 478 $ 1,256
Accrued expenses 579 880
Accrued payroll and related expenses 391 377
Deferred revenue - related party 2,104 1,277
Current portion of obligations under capital leases 69 133
------------ ------------
Total current liabilities 3,621 3,923
Noncurrent portion of obligations under capital -- 8
leases
Commitments
Stockholders' equity:
Common stock 182 182
Additional paid-in capital 80,314 80,304
Deferred compensation (17) (30)
Accumulated deficit (56,732) (54,741)
------------ ------------
Total stockholders' equity 23,747 25,715
------------ ------------
Total Liabilities and Stockholders' Equity $ 27,368 $ 29,646
============ ============
</TABLE>
Note: The balance sheet at December 31, 1997 has been derived from the audited
financial statements at that date but does not include all of the information
and footnotes required by generally accepted accounting principles for complete
balance sheets.
See accompanying notes.
3
<PAGE> 4
LA JOLLA PHARMACEUTICAL COMPANY
STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
---------------------------
1998 1997
-------- --------
<S> <C> <C>
Revenue from collaborative agreement - related party $ 1,903 $ 2,364
Expenses:
Research and development 3,525 3,137
General and administrative 718 780
-------- --------
Total expenses 4,243 3,917
-------- --------
Loss from operations (2,340) (1,553)
Interest expense (4) (24)
Interest income 353 355
-------- --------
Net loss and comprehensive net loss $ (1,991) $ (1,222)
======== ========
Basic and diluted net loss per share $ (.11) $ (.07)
======== ========
Shares used in computing basic and diluted net
loss per share 18,161 17,279
======== ========
</TABLE>
See accompanying notes.
4
<PAGE> 5
LA JOLLA PHARMACEUTICAL COMPANY
STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
-------------------------------
1998 1997
------------ ------------
<S> <C> <C>
OPERATING ACTIVITIES
Net loss $ (1,991) $ (1,222)
Adjustments to reconcile net loss to net cash (used
for) provided by operating activities:
Depreciation and amortization 106 166
Deferred compensation amortization 12 35
Change in operating assets and liabilities:
Receivable - related party -- 4,000
Other current assets 218 42
Accounts payable and accrued expenses (1,079) (1,550)
Accrued payroll and related expenses 14 (1)
Deferred revenue - related party 827 2,290
------------ ------------
Net cash (used for) provided by operating activities (1,893) 3,760
INVESTING ACTIVITIES
Increase (decrease) in short-term investments 6,382 (363)
Additions to property and equipment (347) (337)
Increase in patent costs and other assets (96) (63)
------------ ------------
Net cash provided by (used for) investing activities 5,939 (763)
FINANCING ACTIVITIES
Net proceeds from issuance of common stock 11 (32)
Payments on obligations under capital leases (72) (255)
------------ ------------
Net cash used for financing activities (61) (287)
Net increase in cash and cash equivalents 3,985 2,710
Cash and cash equivalents at beginning of period 11,999 6,613
------------ ------------
Cash and cash equivalents at end of period $ 15,984 $ 9,323
============ ============
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid $ 4 $ 24
============ ============
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND
FINANCING ACTIVITIES:
Adjustment to deferred compensation for terminations $ 1 $ 15
============ ============
</TABLE>
See accompanying notes.
5
<PAGE> 6
LA JOLLA PHARMACEUTICAL COMPANY
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
MARCH 31, 1998
1. BASIS OF PRESENTATION
The accompanying unaudited financial statements of La Jolla Pharmaceutical
Company (the "Company") have been prepared in accordance with generally accepted
accounting principles for interim financial information and with the
instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do
not include all of the information and footnotes required by generally accepted
accounting principles for complete financial statements. In the opinion of
management, all adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation have been included. Operating results for the
three months ended March 31, 1998 are not necessarily indicative of the results
that may be expected for other quarters or the year ended December 31, 1998. For
more complete financial information, these financial statements, and the notes
thereto, should be read in conjunction with the audited financial statements for
the year ended December 31, 1997 included in the Company's Form 10-K filed with
the Securities and Exchange Commission.
2. ACCOUNTING POLICIES
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts reported in the financial statements and disclosures made in
the accompanying notes to the financial statements. Actual results could differ
from those estimates.
COMPREHENSIVE INCOME
On January 1, 1998, the Company adopted Statement of Financial Accounting
Standard No. 130, "Reporting Comprehensive Income" ("SFAS 130"). SFAS 130
requires that all components of comprehensive income, including net income, be
reported in the financial statements in the period in which they are recognized.
Comprehensive income is defined as the change in equity during the period from
transactions and other events and circumstances from non-owner sources. Net
income and other comprehensive income, including unrealized gains and losses on
investments, shall be reported, net of their related tax effect, to arrive at
comprehensive income. The Company's comprehensive net loss and net loss are the
same and therefore the adoption of SFAS 130 did not have an impact on the
Company's financial statements.
SEGMENT INFORMATION
On January 1, 1998, the Company adopted Statement of Financial Accounting
Standard No. 131, "Segment Information" ("SFAS 131"). SFAS 131 redefines
segments and requires companies to report financial and descriptive information
about their operating segments. The Company has determined that it operates in
one business segment and therefore the adoption of SFAS 131 did not affect the
Company's financial statements.
6
<PAGE> 7
LA JOLLA PHARMACEUTICAL COMPANY
PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The discussion below includes forward-looking statements, including
without limitation those dealing with the Company's drug development plans and
clinical trials, its relationship with Abbott Laboratories ("Abbott"), and other
matters described in terms of the Company's plans and expectations. The
forward-looking statements involve risks and uncertainties and a number of
factors, both foreseen and unforeseen, could cause actual results to differ from
the Company's current expectations. The Company's ongoing Phase II/III clinical
trial of LJP 394, the Company's drug candidate for the treatment of lupus, could
result in a finding that LJP 394 is not effective in producing a sustained
reduction of dsDNA antibodies in large patient populations or does not provide a
meaningful clinical benefit. The Company's other potential drug candidates are
at earlier stages of development and involve comparable risks. Payments by
Abbott to the Company are contingent upon progress of clinical trials and the
Company's achievement of certain other milestones that might not be met. The
relationship with Abbott could be terminated by either party for various
reasons. Clinical trials could be delayed and could have negative or
inconclusive results. Additional risk factors include the uncertainty of future
revenue from product sales or other sources such as collaborative relationships,
the uncertainty of future profitability, the Company's dependence on patents and
other proprietary rights, the Company's limited manufacturing capabilities and
the Company's lack of marketing experience. Readers are cautioned not to place
undue reliance upon forward-looking statements, which speak only as of the date
hereof, and the Company undertakes no obligation to update forward-looking
statements to reflect events or circumstances occurring after the date hereof.
Interested parties are urged to review the risks described below and in other
reports and registration statements of the Company filed with the SEC from time
to time.
OVERVIEW
Since its inception in May 1989, the Company has devoted substantially
all of its resources to the research and development of technology and potential
drugs to treat antibody-mediated diseases. The Company has never generated any
revenue from product sales and has relied upon private and public investors,
revenues from collaborative agreements, equipment lease financings and interest
income on invested cash balances for its working capital. The Company has been
unprofitable since inception and expects to incur substantial additional
operating losses for at least the next several years as it increases
expenditures on research and development and allocates significant and
increasing resources to its manufacturing, clinical trials, and marketing
activities. The Company's activities to date are not as broad in depth or scope
as the activities it must undertake in the future, and the Company's historical
operations and the financial information reported below are not indicative of
its future operating results or financial condition.
The Company expects that losses will fluctuate from quarter to quarter
as a result of differences in the timing of expenses incurred and potential
revenues from collaborative arrangements. Some of these fluctuations may be
significant. The Company's research and development expenses are expected to
increase significantly in the future as the Company increases its development
efforts. As of March 31, 1998, the Company's accumulated deficit was
approximately $56.7 million.
The Company's business is subject to significant risks including, but
not limited to, the risks inherent in its research and development efforts,
including clinical trials, uncertainties associated with both obtaining and
enforcing its patents and with the patent rights of others, the lengthy,
expensive and uncertain process of seeking regulatory approvals, uncertainties
regarding government reforms and of product pricing and reimbursement levels,
technological change and competition, manufacturing uncertainties and dependence
on its collaborative relationship with Abbott. Even if the Company's product
7
<PAGE> 8
LA JOLLA PHARMACEUTICAL COMPANY
candidates appear promising at an early stage of development, they may not reach
the market for numerous reasons. Such reasons include the possibilities that the
products will be ineffective or unsafe during clinical trials, will fail to
receive necessary regulatory approvals, will be difficult to manufacture on a
large scale, will be uneconomical to market or will be precluded from
commercialization by proprietary rights of third parties. All of the Company's
product development efforts are based upon technologies and therapeutic
approaches that are unproven. There can be no assurance that LJP 394 will
reliably induce or sustain suppression of disease-causing antibodies, or that
LJP 394 will prove to be safe or effective. Furthermore, clinical trials of LJP
394 may be viewed as a test of the Company's entire Tolerance Technology
approach. If these clinical trials are unsuccessful, the applicability of the
Company's Tolerance Technology to other antibody-mediated diseases will be
highly uncertain.
RESULTS OF OPERATIONS
The Company earned $1.9 million in revenue from its collaborative
agreement with Abbott in the first quarter of 1998 compared to $2.4 million for
the same period in 1997. The decrease in revenue is due to the transferring of
certain clinical trials related expenses for LJP 394 directly to Abbott.
Payments received in advance under the collaborative agreement with Abbott are
recorded as deferred revenue until earned. Total payments of approximately $2.7
million were received under the collaborative agreement with Abbott in the first
three months of 1998. As of March 31, 1998, deferred revenue was approximately
$2.1 million. The receipt of payments and the recognition of revenue from the
collaborative agreement with Abbott may vary significantly from quarter to
quarter and from year to year depending on the level of research effort expended
and the timing of milestone payments. There can be no assurance that the Company
will realize any further revenue from the Abbott arrangement or any other
collaborative arrangement.
For the three months ended March 31, 1998, research and development
expenses increased to $3.5 million from $3.1 million for the same period in
1997. The increase was due primarily to the expansion of the Company's research
and development programs, an increase in manufacturing scale-up activities and
increased facilities expenditures. The Company's research and development
expenses are expected to increase significantly in the future as the
organization grows, efforts to develop additional drug candidates are
intensified and potential products progress into and through clinical trials.
General and administrative expenses decreased to $718,000 for the three
months ended March 31, 1998, from $780,000 for the same period in 1997. The
decrease was due to lower insurance costs. The Company expects general and
administrative expenses to increase in the future in order to support increased
manufacturing scale-up and research and development activities.
Interest income of $353,000 for the three months ended March 31, 1998
remained comparable to the interest income of $355,000 for the same period in
1997. The average invested cash balances for the first quarter of 1998 and 1997
were comparable. For the three months ended March 31, 1998, interest expense
decreased to $4,000 from $24,000 for the same period in 1997. The decrease was
the result of decreases in the Company's capital lease obligations.
LIQUIDITY AND CAPITAL RESOURCES
As of March 31, 1998, the Company had incurred a cumulative net loss
since inception of approximately $56.7 million, and had financed its operations
through private and public offerings of its securities, payments from
collaborative agreements, capital and operating lease transactions, and interest
income on its invested cash balances. As of March 31, 1998, the Company had
raised $79.5 million in net proceeds since inception from sales of equity
securities.
8
<PAGE> 9
LA JOLLA PHARMACEUTICAL COMPANY
At March 31, 1998, the Company had $24.6 million in cash, cash
equivalents and short-term investments, as compared to $27.0 million at December
31, 1997. The Company's working capital at March 31, 1998 was $21.4 million, as
compared to $23.7 million at December 31, 1997. The decrease in cash, cash
equivalents and short-term investments resulted from the continued use of the
Company's cash toward expenses of ongoing clinical and research and development
programs and related general and administrative expenses and the purchase of
property and equipment. The decrease in working capital is primarily due to the
use of cash for net operating expenses in the first quarter of 1998. The Company
invests its cash in corporate and United States Government-backed debt
instruments.
As of March 31, 1998, the Company had acquired an aggregate of $4.4
million in property and equipment, of which approximately $956,000 of total
fixed assets costs is financed under capital lease obligations. In addition, the
Company leases its office and laboratory facilities and certain property and
equipment under operating leases. The Company has no material commitments for
the acquisition of property and equipment but anticipates increasing investment
in property and equipment in connection with the enhancement of its research and
development and manufacturing facilities and capabilities.
The Company intends to use its financial resources to fund manufacturing
scale-up activities including the production of LJP 394 for clinical trials,
research and development efforts, and for working capital and other general
corporate purposes. The amounts actually expended for each purpose may vary
significantly depending upon numerous factors, including the results of clinical
trials, the timing of regulatory applications and approvals, and technological
developments. Expenditures will also depend upon the establishment and progress
of collaborative arrangements, contract research and the availability of other
financing. There can be no assurance that these funds will be available on
acceptable terms, if at all.
The Company anticipates that its existing capital and interest earned
thereon and anticipated funding from the Abbott collaboration will be sufficient
to fund the Company's operations as currently planned through 1999. The
Company's future capital requirements will depend on many factors, including
continued scientific progress in its research and development programs, the size
and complexity of these programs, the scope and results of clinical trials, the
time and costs involved in applying for regulatory approvals, the costs involved
in preparing, filing, prosecuting, maintaining and enforcing patent claims,
competing technological and market developments, the ability of the Company to
maintain its collaborative arrangement with Abbott and to establish and maintain
additional collaborative relationships and the cost of manufacturing scale-up
and effective commercialization activities and arrangements. The Company expects
to incur significant net operating losses each year for at least the next
several years as it expands its current research and development programs and
increases its general and administrative expenses to support a larger, more
complex organization. It is possible that the Company's cash requirements will
exceed current projections and that the Company will therefore need additional
financing sooner than currently expected.
The Company has no current means of generating cash flow from operations
and its lead drug candidate, LJP 394, will not generate revenues, if at all,
until it has been proven safe and effective, has received regulatory approval
and has been successfully commercialized, a process that is expected to take at
least the next several years. The Company's other drug candidates are much less
developed than LJP 394. There can be no assurance that the Company's product
development efforts with respect to LJP 394 or any other drug candidate will be
successfully completed, that required regulatory approvals will be obtained, or
that any product, if introduced, will be successfully marketed or achieve
commercial acceptance. Accordingly, the Company must continue to rely upon
outside sources of financing to meet its capital needs for the foreseeable
future.
9
<PAGE> 10
LA JOLLA PHARMACEUTICAL COMPANY
Abbott's funding of the development costs for LJP 394 and milestone
payments are expected to continue to enhance the Company's short-term liquidity
by minimizing the expenditure of the Company's own funds on further development
of LJP 394. However, the Company anticipates increasing expenditures on the
development of other drug candidates and over time, the Company's consumption of
cash will necessitate additional sources of financing. Furthermore, the Company
has no internal sources of liquidity and termination of the Abbott arrangement
would have a serious adverse effect on the Company's ability to generate
sufficient cash to meet its needs.
The Company will continue to seek capital through any appropriate means,
including issuance of its securities and establishment of additional
collaborative arrangements. However, there can be no assurance that additional
financing will be available on acceptable terms and the Company's negotiating
position in its capital-raising efforts may worsen as it continues to use its
existing resources. Financing through collaborative arrangements is uncertain
because payments under the Company's collaborative agreement with Abbott are
subject to certain termination rights, including those related to progress in
clinical trials for LJP 394, and there is no assurance that the Company will be
able to enter into further collaborative relationships.
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) EXHIBITS
<TABLE>
<CAPTION>
Exhibit
Number Description
- ------ -----------
<S> <C>
3.1 Intentionally omitted
3.2 Bylaws of the Company (1)
3.3 Restated Certificate of Incorporation of the Company (3)
10.1 Intentionally omitted
10.2 Stock Option Agreement dated February 4, 1993 entitling Joseph
Stemler to purchase 35,000 shares of Common Stock (1) *
10.3 Letter regarding terms of employment and potential severance of
Stephen M. Coutts (1) and the modification to this letter (10) *
10.4 Intentionally omitted
10.5 Intentionally omitted
10.6 Steven B. Engle Employment Agreement (1) and Amendment No. 1 (10) *
10.7 Form of Directors and Officers Indemnification Agreement (1)
10.8 Intentionally omitted
10.9 Exclusive License Agreement dated September 1, 1991 regarding PLA2
inhibition technology between the Company and the Regents of the
University of California (1)
10.10 Option and Collaborative Research Agreement dated June 10, 1991
regarding certain compounds for potential treatment of muscular
dystrophies or myasthenia gravis between the Company and CepTor
Corporation (1)
</TABLE>
10
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LA JOLLA PHARMACEUTICAL COMPANY
<TABLE>
<CAPTION>
Exhibit
Number Description
- ------ -----------
<S> <C>
10.11 Consulting Agreement dated September 1, 1991 between the Company and
Dr. Edward A. Dennis (1)
10.12 Agreement dated September 1, 1991 regarding stock purchase between
the Company and Dr. Edward A. Dennis (1)
10.13 Form of Employee Invention and Confidential Information Agreement (1)
10.14 Industrial Real Estate Lease (1)
10.15 Intentionally omitted
10.16 Master Lease Agreement dated June 22, 1993 with Aberlyn Capital
Management Limited Partnership ("ACM") and related Agreements to
Issue Warrant with Warrants issued to ACM and Aberlyn Holding
Company, Inc. (1)
10.17 La Jolla Pharmaceutical Company 1989 Incentive Stock Option Plan and
1989 Nonstatutory Stock Option Plan (1)*
10.18 Form of Stock Option Agreement under the 1989 Nonstatutory Stock
Option Plan (1)
10.19 La Jolla Pharmaceutical Company 1994 Incentive Stock Option Plan (1)*
10.20 Intentionally omitted
10.21 Letter Agreement dated June 7, 1993 between the Company and Vector
Securities International regarding Vector's engagement as financial
advisor to the Company with respect to potential corporate strategic
alliances (1)
10.22 Intentionally omitted
10.23 Intentionally omitted
10.24 Intentionally omitted
10.25 Second Amendment to Lease dated June 30, 1994 by and between the
Company and BRE Properties, Inc. (2)
10.26 Intentionally omitted
10.27 Third Amendment to Lease dated January 26, 1995 by and between the
Company and BRE Properties, Inc. (4)
10.28 Intentionally omitted
10.29 Master Lease Agreement dated September 13, 1995 by and between the
Company and Comdisco Electronics Group (5)
10.30 Intentionally omitted
10.31 Agreement dated September 22, 1995 between the Company and Joseph
Stemler regarding option vesting (6)*
10.32 Consulting Agreement dated January 1, 1996 between the Company and
Joseph Stemler (6)*
10.33 Building Lease Agreement effective November 1, 1996 by and between
the Company and WCB II-S BRD Limited Partnership (7)
10.34 Master Lease Agreement dated December 20, 1996 by and between the
Company and Transamerica Business Credit Corporation (9)
10.35 License and Supply Agreement dated December 23, 1996 by and between
the Company and Abbott Laboratories (8), (9)
</TABLE>
11
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LA JOLLA PHARMACEUTICAL COMPANY
<TABLE>
<CAPTION>
Exhibit
Number Description
- ------ -----------
<S> <C>
10.36 Stock Purchase Agreement dated December 23, 1996 by and between the
Company and Abbott Laboratories (9)
10.37 Option Amendment Agreement dated November 3, 1997 between the Company
and Peter G. Ulrich (11)*
27 Financial Data Schedule (12)
</TABLE>
- -----------------
* This exhibit is a management contract or compensatory plan or
arrangement.
(1) Previously filed with the Company's Registration Statement on Form S-1
(No. 33-76480) as declared effective by the Securities and Exchange
Commission on June 3, 1994.
(2) Previously filed with the Company's quarterly report on Form 10-Q for
the quarter ended June 30, 1994 and incorporated by reference herein.
(3) Previously filed with the Company's annual report on Form 10-K for the
fiscal year ended December 31, 1994 and incorporated by reference
herein.
(4) Previously filed with the Company's quarterly report on Form 10-Q for
the quarter ended March 31, 1995 and incorporated by reference herein.
(5) Previously filed with the Company's quarterly report on Form 10-Q for
the quarter ended September 30, 1995 and incorporated by reference
herein.
(6) Previously filed with the Company's annual report on Form 10-K for the
fiscal year ended December 31, 1995 and incorporated by reference
herein.
(7) Previously filed with the Company's quarterly report on Form 10-Q for
the quarter ended September 30, 1996 and incorporated by reference
herein.
(8) Portions of the Exhibit 10.35 have been omitted and filed separately
with the Securities and Exchange Commission pursuant to a request for
confidential treatment under Rule 24b-2 of the Securities Exchange Act
of 1934.
(9) Previously filed with the Company's annual report on Form 10-K for the
fiscal year ended December 31, 1996 and incorporated by reference
herein.
(10) Previously filed with the Company's quarterly report on Form 10-Q for
the quarter ended June 30, 1997 and incorporated by reference herein.
(11) Previously filed with the Company's quarterly report on Form 10-Q for
the quarter ended September 30, 1997 and incorporated by reference
herein.
(12) Filed herein.
(b) REPORTS ON FORM 8-K
None
12
<PAGE> 13
LA JOLLA PHARMACEUTICAL COMPANY
SIGNATURE
MARCH 31, 1998
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
La Jolla Pharmaceutical Company
Date: May 13, 1998 By: /s/ Wood C. Erwin
-------------------------
Wood C. Erwin
Vice President Finance
Chief Financial Officer
Signed both on behalf of the Registrant and
as Principal Accounting Officer.
13
<PAGE> 14
LA JOLLA PHARMACEUTICAL COMPANY
INDEX TO EXHIBITS
<TABLE>
Sequentially
Exhibit Numbered
Number Exhibit Page
- ------ ------- ------------
<S> <C> <C>
27 Financial Data Schedule 15
</TABLE>
14
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<CASH> 15,984
<SECURITIES> 8,597
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 440
<PP&E> 4,414
<DEPRECIATION> (3,220)
<TOTAL-ASSETS> 27,368
<CURRENT-LIABILITIES> 3,621
<BONDS> 0
0
0
<COMMON> 182
<OTHER-SE> 23,565
<TOTAL-LIABILITY-AND-EQUITY> 27,368
<SALES> 0
<TOTAL-REVENUES> 1,903
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 4,243
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 4
<INCOME-PRETAX> (1,991)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,991)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,991)
<EPS-PRIMARY> (0.11)
<EPS-DILUTED> (0.11)
</TABLE>
