LA JOLLA PHARMACEUTICAL COMPANY (NASDAQ:LJPC) Files An 8-K Costs Associated with Exit or Disposal Activities

On May 28, 2020, the Board of Directors of La Jolla Pharmaceutical Company approved a restructuring plan (the “Restructuring”) to align its organization with the Company’s sole focus on the commercialization of GIAPREZA (angiotensin II). La Jolla estimates that it will incur expenses of approximately $4.1 million related to the Restructuring, which will be incurred in the second quarter of 2020 and consist of one-time termination benefits to the affected employees, including severance and healthcare benefits.

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

In connection with the Restructuring, Dennis Mulroy and James Rolke each mutually agreed with La Jolla to leave as officers and employees, effective May 31, 2020. Mr. Mulroy had served as La Jolla’s Chief Financial Officer, and

Mr. Rolke had served as La Jolla’s Chief Scientific Officer. In connection with their separation from La Jolla, Mr. Mulroy and Mr. Rolke will each be entitled to receive aggregate salary continuation payments of $327,883, payable over the 10-month period following their separation date. Mr. Mulroy and Mr. Rolke will also be reimbursed by La Jolla for continued medical coverage for up to 12 months following their separation date. Additionally, Mr. Mulroy and Mr. Rolke will be entitled to continued vesting through January 9, 2021 of their stock option grant made on January 9, 2020. In each case, such severance benefits are conditioned on the entry into a separation and general release agreement.

Effective June 1, 2020, the Board of Directors appointed Michael Hearne as La Jolla’s Chief Financial Officer and as La Jolla’s “principal financial officer” and “principal accounting officer,” as such terms are defined under the Securities Exchange Act of 1934, as amended. Since 2015, Mr. Hearne, age 57, has served as Chief Financial Officer of Tang Capital Management, LLC, a life sciences-focused investment company. Since 2015, Mr. Hearne has also held various positions at Odonate Therapeutics, Inc., most recently serving as Chief Financial Officer since 2018. From 2014 to 2015, he served as a Partner at Weaver & Tidwell, LLP. Mr. Hearne started his career in public accounting at Coopers & Lybrand. Mr. Hearne received a B.S. degree in accounting and a masters of accountancy, taxation from Brigham Young University and is a Certified Public Accountant (inactive) in the state of California. Mr. Hearne will be compensated with an annualized base salary of $135,375 and a target bonus equal to 40% of his base salary. In connection with Mr. Hearne’s appointment, he was granted an option to purchase up to 100,000 shares of common stock in La Jolla, which vests over 4 years.

Item 8.01 Other Events

As previously reported on Form 8-K, on May 26, 2020, La Jolla learned by way of a press release issued by the FDA that Amivas, LLC, an entity not affiliated with La Jolla, was granted FDA approval of its IV artesunate product. Artesunate is the active ingredient used in LJPC-0118. Amivas had previously been granted Orphan Drug designation for its IV artesunate product. According to FDA regulations, the FDA will not approve another sponsor’s marketing application for the same drug for the same use or indication within 7 years of the initial approval. On May 29, 2020, La Jolla received notice from the FDA that its marketing application for LJPC-0118 was tentatively approved. La Jolla will not receive final approval until Amivas’ 7-year market exclusivity has expired.

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About LA JOLLA PHARMACEUTICAL COMPANY (NASDAQ:LJPC)

La Jolla Pharmaceutical Company is a biopharmaceutical company. The Company is focused on the discovery, development and commercialization of therapies to improve outcomes in patients suffering from life-threatening diseases. It is engaged in the research, development and commercialization of its technologies and drug candidates for pharmaceutical products. Its product candidates in development include LJPC-501, LJPC-401, LJPC-30Sa and LJPC-30Sb. The Company is developing LJPC-501 for the treatment of catecholamine-resistant hypotension (CRH). The Company is developing LJPC-401 for the treatment of iron overload, which occurs as a result of diseases, such as hereditary hemochromatosis, beta thalassemia, sickle cell disease and myelodysplastic syndrome. It is developing LJPC-30Sa and LJPC-30Sb not only for the treatment of serious bacterial infections but also for the potential treatment of rare genetic disorders, such as cystic fibrosis and Duchenne muscular dystrophy.