La Jolla Pharmaceutical Co. said Wednesday it will cut its work force by about 60 positions or 39 percent after the Food and Drug Administration said the company’s lupus treatment drug was not likely to receive accelerated approval.
Shares of the company, traded as LJPC on Nasdaq, rose 2 cents. The stock has ranged from 60 cents to $3.88 over the past 52 weeks.
La Jolla Pharmaceutical said it would begin layoffs immediately and should continue the process into the second quarter. After the cuts, the company would have about 95 employees. The company plans to spend about $1.5 million on severance payments.
La Jolla Pharmaceutical said it plans to continue its clinical trials on the lupus kidney disease treatment drug called Riquent, and file for marketing approval in Europe.