Local drugmaker La Jolla Pharmaceutical Co. plans to raise up to $100 million in a public offering of its stock.
The money will be used for a variety of reasons, such as covering the expenses related to the possible regulatory approval of one drug program called LJPC-501.
This investigational medicine has already been through late-stage clinical trials, with positive results reported last month. The drug is being developed to treat a type of low blood pressure that’s resistant to various treatments. The actual condition is called catecholamine resistant hypotension, and can be a life-threatening condition caused by septic shock, blood loss from trauma, or adverse drug reactions.
La Jolla Pharmaceutical also plans to use the new funds to pay for ongoing and future clinical trials of other drug candidates, potential future acquisitions, and general and administrative expenses.
In the company’s most recent earnings statement (December 2016), La Jolla Pharmaceutical had $65.7 million in cash and cash equivalents on hand. The new public offering should significantly extend the company’s cash runway.