UPDATE 1-BioMarin in pact with La Jolla for lupus drug

Jan 6 (Reuters) - BioMarin Pharmaceutical Inc (BMRN.O) said it entered into an agreement with La Jolla Pharmaceutical Co (LJPC.O) to co-develop and market La Jolla's experimental lupus drug worldwide, except in the Asia-Pacific region.

Shares of La Jolla nearly doubled their value to $1.49 in trading after the bell.

BioMarin would pay $15 million upfront to La Jolla, which could receive up to $289 million in cash through milestones and equity purchases by BioMarin as part of the deal, the companies said.

Both companies would jointly commercialize Riquent, which is currently in late-stage trials as a treatment for lupus, in the United States. BioMarin would be responsible for all other commercialization activities in Europe and other territories outside of Asia.

Results from the late-stage studies of Riquent is expected in the first quarter of 2009 and in mid-2009. Lupus is a potentially fatal, chronic autoimmune disease in which the body creates antibodies that attack the body's own connective tissues.

Following a successful late-stage trial, both companies would share equally in all losses and profits.

"If the ASPEN study is successful, Riquent provides BioMarin the opportunity to launch a product in the 2010 and 2011 timeframe in regions where we can leverage existing commercial operations," BioMarin Chief Executive Jean-Jacques Bienaime said.

BioMarin shares closed at $18.31 Tuesday on Nasdaq. (Reporting by Vidya L Nathan in Bangalore; Editing by Deepak Kannan)