Losses lessening at La Jolla

San Diego-based La Jolla Pharmaceutical has reported a net loss for the fourth quarter ended December 31, 2003 of $8.4m compared with a net loss of $13.2m for the fourth quarter of 2002. The net loss for the year ended December 31, 2003 was $38.8m compared with a net loss of $43.3m for the same period in 2002.

Research and development expenses decreased to $6.4m for the three months ended December 31, 2003 from $11.3m for the same period in 2002. This was primarily due to a decrease in expenses related to the company's Phase III clinical trial of Riquent. which was completed in December 2002, the open-label follow-on clinical trial of Riquent which was initiated in July 2002 and closed in April 2003, and the Phase I/II clinical trial of LJP 1082 which was completed in October 2002.

Research and development expenses decreased to $32.4m for the twelve months ended December 31, 2003 from $37.7m for the same period in 2002 primarily due to a decrease in expenses related to the completion of the company's clinical trials as highlighted above. These decreases were partially offset by an increase in personnel costs, including the restructuring charges recorded in May 2003.

Cash, cash equivalents and short-term investments as of December 31, 2003 were $32.1m compared with $52.7m as of December 31, 2002. On February 25, 2004, the company sold 8,695,653 shares of its common stock in a public offering for net proceeds of approximately $25.6m.

The company anticipates that its existing cash and cash investments, including the net proceeds received by the company from the February 2004 public offering, and interest earned thereon, will be sufficient to fund its operations as currently planned into the second quarter of 2005, assuming that it does not engage in any significant clinical trial or commercialisation activities and further assuming that the company does not enter into an agreement with a collaborative partner or engage in any other fundraising activities.