La Jolla Pharmaceutical Co (LJPC)

[TradingCharts]

LJPC Hurdle for Merger Cleared 23-Jul-09 11:35 pm

On May 22, 2009, the La Jolla Pharmaceutical Co. and its directors were sued by BioMarin Pharmaceutical Company in California Superior Court, alleging breach of contract, breach of covenant of good faith and fair dealing, and breach of fiduciary duty. BioMarin, which had been the company's development partner for Riquent, sued to force the company to accelerate the timing for the registration of approximately 10 million shares of restricted common stock that BioMarin had purchased from the company when entering into the collaboration for Riquent in January 2009. Additionally, BioMarin seeks to recover damages for any loss it may suffer due to the alleged breach. The Company believes these claims are wholly without merit. Prior to the filing of the BioMarin lawsuit, the company had made significant progress negotiating a potential merger with another company and was working toward the execution of a definitive merger agreement and the announcement of the transaction. However, in light of the pending lawsuit by BioMarin and the expected impact on the ability to complete the Merger, as well as the potential litigation damages and the defense costs, the company's Board of Directors concluded that it is impractical for the company to pursue the merger or other any similar transaction with another party.
http://investorshub.advfn.com/boards/profile.asp?user=63350