XML 48 R7.htm IDEA: XBRL DOCUMENT v3.20.4
Description of Business and Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Description of Business and Summary of Significant Accounting Policies

1.  Description of Business and Summary of Significant Accounting Policies

La Jolla Pharmaceutical Company is dedicated to the development and commercialization of innovative therapies that improve outcomes in patients suffering from life-threatening diseases. GIAPREZA™ (angiotensin II) injection is approved by the U.S. Food and Drug Administration (“FDA”) as a vasoconstrictor indicated to increase blood pressure in adults with septic or other distributive shock. XERAVA™ (eravacycline) for injection is approved by the FDA as a tetracycline class antibacterial indicated for the treatment of complicated intra-abdominal infections (“cIAI”) in patients 18 years of age and older.

On July 28, 2020, La Jolla completed its acquisition of Tetraphase Pharmaceuticals, Inc. (“Tetraphase”), a biopharmaceutical company focused on commercializing XERAVA, for $43 million in upfront cash plus potential future cash payments of up to $16 million. The Company’s consolidated financial results for the period ended December 31, 2020 include Tetraphase’s financial results subsequent to the acquisition closing date of July 28, 2020 (see Note 11).

As of December 31, 2020 and December 31, 2019, the Company had cash and cash equivalents of $21.2 million and $87.8 million, respectively. Subsequent to December 31, 2020, the Company received $19.1 million in connection with the PAION License (see Note 15). Based on the Company’s current operating plans and projections, the Company expects that its existing cash and cash equivalents will be sufficient to fund operations for at least one year from the date this Annual Report on Form 10-K is filed with the U.S. Securities and Exchange Commission (the “SEC”).