Javelin Pharmaceuticals Inc. (Public, AMEX:JAV)
Take one look at a chart of Javelin Pharmaceuticals over the past six months and you will see a stock that has doubled in price but still sits only around $2.00 per share. In fact, just two years ago, the stock was being recommended by analysts with its stock price hovering around $7.00. In short, as detailed on their website, Javelin is a specialty pharmaceutical company that applies innovative proprietary technologies to develop new drugs and improved formulations of existing drugs that target current unmet and under-served medical need in the pain management market. Javelin’s focus is different than other pharmaceutical companies’ pain management products: they develop new and proprietary administration routes for well-characterized molecules of the non-opioid category. This enables patients in hospitals to be less dependent on pain medication which utilizes opioids thus keeping them in the hospital for longer stays, something the health-care field is trying to drastically reduce. Javelin currently has three drugs in Phase III testing, one of which, Dyloject, already has European approval.
What has investors so excited about this stock is a long list of positives. First and foremost, this year, with Javelin announcing a $71 million European commercialization partnership with Therabel Pharma for Dyloject, they have already begun to tap into a large pain management market and are reaping the benefits financially. Global Industry Analysts Inc. predict that the worldwide pain management market will hit 43.2 billion by 2010. This is a huge market that Javelin is working hard at continuing to tap into.
Currently, according to CEO Martin Driscoll, Javelin is working on a partnership for Dyloject in the United States. In June, JAV reported fantastic results from their safety study for Dyloject in the United States and will be filing what Mr. Driscoll calls a “high quality” NDA this fall. With such great results from their study, it seems highly unlikely that the FDA will deny or even seek additional information from Javelin once the NDA filing is complete. Like Javelin’s other two drug candidates, Ereska and Rylomine, Dyloject focuses on helping patients deal with pain. In particular, however, Dyloject is injectible and focuses on post operative pain; it is being used in hospitals throughout the United Kingdom. A large partnership with a mid to large cap pharmaceutical company is imminent once Dyloject is approved in the United States.
In their recent May 2009 conference call, Mr.
