8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): August 3, 2006

La Jolla Pharmaceutical Company

(Exact name of registrant as specified in its charter)

Delaware	0-24274	33-0361285
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)
6455 Nancy Ridge Drive, San Diego, California		92121
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (858) 452-6600

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

EXHIBIT 99.1

2.02 Results of Operations and Financial Condition.

     On August 3, 2006, La Jolla Pharmaceutical Company announced and commented on its second quarter and year-to-date financial results for the period ended June 30, 2006. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated by reference herein.

     The information in this Form 8-K and the exhibit attached hereto and incorporated herein shall not be deemed “filed” for purposes of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	La Jolla Pharmaceutical Company
Date: August 3, 2006	By:	/s/ Gail A. Sloan
		Gail A. Sloan
		Vice President of Finance and Secretary

EXHIBIT INDEX

Exhibit
Number	Description of Exhibit
99.1	Press Release (furnished pursuant to Item 2.02 of Form 8-K)

EX-99.1

EXHIBIT 99.1

LA JOLLA PHARMACEUTICAL COMPANY
REPORTS SECOND QUARTER AND YEAR-TO-DATE
FINANCIAL RESULTS

SAN DIEGO, AUGUST 3, 2006 — La Jolla Pharmaceutical Company (Nasdaq: LJPC) reported a net loss for the second quarter ended June 30, 2006 of $9.3 million, or $0.29 per share (on 32.5 million weighted average shares), compared to a net loss of $6.3 million, or $0.42 per share (on 14.8 million weighted average shares), for the second quarter of 2005. The net loss for the six months ended June 30, 2006 was $20.2 million, or $0.62 per share (on 32.5 million weighted average shares), compared to a net loss of $15.4 million, or $1.07 per share (on 14.3 million weighted average shares), for the same period in 2005.

Research and development expenses increased to $8.2 million for the three months ended June 30, 2006 from $5.2 million for the same period in 2005. The increase was primarily due to an increase in Riquent^®-related drug production expenses as well as share-based compensation expense of approximately $0.7 million recorded in the second quarter of 2006 in connection with the adoption of Statement of Financial Accounting Standard No.123R, Share-Based Payment (SFAS 123R), on January 1, 2006.

Research and development expenses increased to $16.1 million for the six months ended June 30, 2006 from $12.5 million for the same period in 2005. The increase was primarily due to an increase in Riquent^®-related drug production and clinical trial expenses. In addition, the increase was due to share-based compensation expense of approximately $1.1 million recorded in the first and second quarters of 2006 in connection with the adoption of SFAS 123R. These increases were partially offset by a decrease in termination benefits, mainly severance, of approximately $0.9 million recorded in March 2005 in connection with the termination of 44 research and development personnel, and the savings in salaries and related expenses as a result of this reduction in personnel.

General and administrative expenses increased to $1.9 million for the three months ended June 30, 2006 from $1.2 million for the same period in 2005. The increase was primarily due to share-based compensation expense of approximately $0.6 million recorded in the second quarter of 2006 in connection with the adoption of SFAS 123R. The increase was also due to an increase in consulting and professional outside services.

General and administrative expenses increased to $5.6 million for the six months ended June 30, 2006 from $3.1 million for the same period in 2005. The increase was primarily due to share-based compensation expense of approximately $1.9 million recorded in the first and second quarters of 2006 in connection with the adoption of SFAS 123R. The increase was also due to the expense recorded in the

first quarter of 2006 for severance to the former Chairman and Chief Executive Officer and an increase in consulting and professional outside services. These increases were partially offset by a decrease in termination benefits, mainly severance, of approximately $0.4 million recorded in March 2005 in connection with the termination of 16 general and administrative personnel, and the savings in salaries and related expenses as a result of this reduction in personnel.

Cash, cash equivalents and short-term investments as of June 30, 2006 were $57.0 million compared to $72.9 million as of December 31, 2005.

La Jolla Pharmaceutical Company is a biotechnology company developing therapeutics for antibody-mediated autoimmune diseases and inflammation afflicting several million people around the world. The Company is developing Riquent® for the treatment of lupus kidney disease, a leading cause of sickness and death in patients with lupus. The Company is also developing small molecules to treat various other autoimmune and inflammatory conditions. The Company’s common stock is traded on The Nasdaq Global Market under the symbol LJPC. For more information about the Company, visit its website: http://www.ljpc.com.

The forward-looking statements in this press release involve and will involve significant risks and uncertainties, and a number of factors, both foreseen and unforeseen, could cause actual results to differ materially from our current expectations. Forward-looking statements include those that express a plan, belief, expectation, estimation, anticipation, intent, contingency, future development or similar expression. The results from our clinical trials of Riquent, our drug candidate for the treatment of systemic lupus erythematosus (lupus), and any other drug candidate that we may develop, may not ultimately be sufficient to obtain regulatory clearance to market Riquent either in the United States or Europe, and we may be required to conduct additional clinical studies to obtain marketing approval. There can be no assurance, however, that we will have the necessary resources to complete any current or future trials or that any such trials will be sufficient to obtain marketing approval. The analysis of the data from our Phase 3 trial of Riquent showed that the trial did not reach statistical significance with respect to its primary endpoint, time to renal flare, or with respect to its secondary endpoint, time to treatment with high-dose corticosteroids or cyclophosphamide. Our blood test to measure the binding affinity for Riquent is experimental, has not been validated by independent laboratories and will likely be reviewed as part of the Riquent approval process. Our SSAO inhibitor program is at a very early stage of development and involves comparable risks. We depend on patents and other proprietary rights, and our ability to develop and sell our products in the future may be adversely affected by the intellectual property rights of third parties. Readers are cautioned to not place undue reliance upon forward-looking statements, which speak only as of the date hereof, and we undertake no obligation to update forward-looking statements to reflect events or circumstances occurring after the date hereof. Interested parties are urged to review additional risks described in our Annual Report on Form 10-K for the year ended December 31, 2005, and in other reports and registration statements that we file with the Securities and Exchange Commission from time to time.

La Jolla Pharmaceutical Company
Condensed Consolidated Financial Statements (in thousands, except per share data)

Summary of Operations

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	(Unaudited)						(Unaudited)
	2006			2005			2006			2005
Research and development expenses	$	8,187		$	5,182		$	16,077		$	12,530
General and administrative expenses		1,900			1,235			5,625			3,143
Total expenses		10,087			6,417			21,702			15,673
Loss from operations		(10,087	)		(6,417	)		(21,702	)		(15,673	)
Interest income		750			193			1,510			343
Interest expense		(8	)		(30	)		(21	)		(66	)
Net loss	$	(9,345	)	$	(6,254	)	$	(20,213	)	$	(15,396	)
Basic and diluted net loss per share	$	(0.29	)	$	(0.42	)	$	(0.62	)	$	(1.07	)
Shares used in computing basic and diluted net loss per share		32,503			14,781			32,491			14,333

Balance Sheet Information

	June 30,		December 31,
	2006		2005
	(Unaudited)
Assets
Cash, cash equivalents, and short-term investments	$	57,018	$	72,877
Other assets		8,554		8,051
Total assets	$	65,572	$	80,928
Liabilities and Stockholders’ Equity
Liabilities	$	5,501	$	3,798
Stockholders’ equity		60,071		77,130
Total liabilities and stockholders’ equity	$	65,572	$	80,928