ProductGIAPREZA^TM (angiotensin II)

In December 2017, GIAPREZA^TM was approved by the U.S. Food and Drug Administration (FDA) to increase blood pressure in adults with septic or other distributive shock. GIAPREZA^TM mimics the body’s endogenous regulatory peptide that is central to the renin-angiotensin-aldosterone system to increase blood pressure.

Background

After the approval of GIAPREZA^TM by the FDA in December 2017, La Jolla Pharmaceutical Company (NASDAQ: LJPC) was interested in raising incremental capital to fund its US launch through a non-dilutive financing. Shortly after raising $100 million in equity in March 2018, La Jolla supplemented its cash balance with an incremental $125 million by selling a tiered royalty on future sales of GIAPREZA^TM to HCR. La Jolla will use the proceeds of the Synthetic RoyaltyTM transaction to fund the US launch of GIAPREZA^TM, advance other clinical candidates and general corporate purposes. By consummating this transaction, La Jolla was able to raise a considerable amount of capital by leveraging the value of the GIAPREZA^TM franchise through a sale of a partial royalty, leaving the rest of the capital structure unencumbered.