ETFinnovators (< 20)

A Rough Flight for Javelin Pharma

December 05, 2008 – Comments (0) | RELATED TICKERS: JAV

Javelin Pharma (JAV) looks like a spec buy today as a victim of forced liquidation as the Company now trades at the same market cap as its cash balance of $36.5M, along with zero debt + insider buying over the past year at much higher prices. I bought shares earlier today at 44 cents and view the current price as a call option trade which never expires unless the company goes under, which is unlikely given the cash hoard and pipeline/product prospects. 

Nice move this afternoon for Javelin Pharma today representing major capitulation down to 40 cents - now up over 20% on the day at 60 cents on over 10X average volume with pending Dyloject Phase 3 results before year-end to support NDA filing with the FDA for US approval next year. Javelin recently announced a 15% workforce reduction to conserve cash and the Company is actively negotiating for deals for its late-stage pipeline of pain drugs.

 

Below is a summary from the 3Q08 results:

  Completed patient enrollment - Pivotal Phase 3 Dyloject orthopedic trial (expect to report top-line data by year end) Ahead of schedule - Phase 3 Ereska trial (85 percent patient enrollment achieved) Initiated ahead of schedule - Dyloject open-label observational safety study Robust US and EU partnership discussions for Dyloject and Ereska continue Continued increases in hospital formulary approvals and sales in the UK for Dyloject Filed MAA variation to include Baxter as European manufacturer – MHRA review in process