October 15, 2009 / 3:35 AM / 10 years ago

UPDATE 1-La Jolla to seek stockholders' approval of dissolution

* Stockholders expected to receive $0.028 and $0.045/shr

* Co. writes down value of clinical-stage drug Riquent

Oct 15 (Reuters) - La Jolla Pharmaceutical Co (LJPC.O) has called a special meeting of stockholders on Oct 30. to vote on a plan of the company’s liquidation and dissolution.

In a statment late on Wednsday, the U.S. firm said it would expect to dissolve shortly after the stockholders’ meeting and then commence a liquidation process.

The company said it expects to satisfy remaining debt obligations and distribute between $0.028 and $0.045 per share to holders of about 66 million shares of the common stock.

Shares of the company closed at 21 cents Wednesday on Nasdaq.

As of August 31, La Jolla had cash, net of liabilities and obligations, of about $4.4 million, it said.

La Jolla said it had written down the value of the Riquent program and related assets to zero and expects the Riquent patents will lapse.

Riquent was being co-developed with BioMarin Pharmaceutical Inc (BMRN.O) and was La Jolla’s only clinical-stage drug candidate.

La Jolla, which had stopped developing Riquent in February, said it has no ongoing research programs. (Reporting by Sakthi Prasad in Bangalore; Editing by Anshuman Daga)

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