NEW YORK (CNN/Money) - The Food and Drug Administration has given "fast track" designation for a potential treatment for lupus that is currently in late-stage testing, said drugmaker La Jolla Pharmaceutical Company on Tuesday.

The FDA's new designation for Riquent, a potential drug for the treatment of lupus renal disease, is designed to speed up the review of new drugs intended to treat life-threatening illnesses, said La Jolla (up $0.24 to $0.64, Research).

Riquent's late-stage clinical trials have been ongoing since 2004 and the penny stock company has hinted strongly that its future depends on the drug's success.

"The Company currently only has limited financial resources and if it does not receive funding from a collaborative agreement or obtain other financing in the near future, it will not have sufficient resources to complete the ongoing clinical benefit trial or to continue its operations beginning in the first quarter of 2006," said La Jolla, in a prepared release.

Founded in 1989, the San Diego-based biotech reported a first quarter, 2005 net loss of $9.1 million, or 13 cents a share.

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