|Upcoming events may move Javelin|
|By R. Saito|
|Monday, 30 November 2009 03:00|
Javelin Pharmaceuticals Inc. (AMEX:JAV) is a is a specialty pharmaceutical company that applies technologies to develop new products and improved formulations of existing drugs that target medical need in the pain management market.
The company has three products in the phase III development stage in the US, one of them already approved for use in Great Britain; Dyloject. Big news events are expected any day now from Javelin. First of all, they will be filing their first new drug application (NDA) with the FDA for marketing of Dyloject in the US, and secondly, the company is expected to announce news of a major strategic transaction.
During the third quarter financial conference call on November 10th, CEO Martin Driscoll was very clear on two points; the NDA filing was taking place and its completion was “days away”, and the strategic negotiations were at an advanced stage. So advanced in fact that the company has avoided further dilution of the stock and stopped efforts to raise more cash, even though there is only enough cash to last into January by most estimates.
This would mean the strategic transaction is merely days away and will probably be announced around the same time as the NDA filing. CEO Driscoll was confident no further cash was needed. From the conference call transcript it is also clear that there were current institutional holders present who would have been willing to provide more operating cash for the company if needed.
The stock price has been steady since the conference call, not moving upward as some shareholders become impatient and move on, “days away” has now turned into three weeks, and this creates a buying opportunity at these levels. Although the company does not have much cash, they also do not have debt, and with a strong pipeline and upcoming NDA filing, Javelin should be a very good buyout target for a large pharmaceutical company.
It is widely expected that the strategic transaction will infact be a buyout rather than a partnership, we will have to wait and see when the announcement comes. I urge all readers to go back and read through the conference call transcript, there is little doubt that these development will be positive for shareholders.
Disclosure: Long JAV