Javelin Pharmaceuticals Inc. (AMEX:JAV) announced it has received a notice from Hospira that the company
will fund a $2 million loan to Javelin on June 10, 2010 under the existing loan agreement between the two. JAV also reported that the Delaware Court of Chancery has granted Javelin's motion to expedite proceedings, and a trial date has been set for the lawsuit against Hospira and its wholly owned subsidiary, Discus Acquisition Corporation.
After a big price jump, Javelin stock moved down, but as soon as the funding news was released, shares of JAV rose up almost 7% on traded volume of 1.5 million shares. Yesterday the market closed at $1.43, which is a 8.33% jump for the Javelin stock.
However, the company's 2010 quarterly results are not satisfying. Javelin has sustained substantial losses and its financial condition has become quite miserable. Based on these facts, it appears the question if JAV will be able to continue operations and meet its future obligations.
Yesterday Javelin announced its intention to submit a plan to regain compliance by June 11, which the Corporate Compliance Department of the exchange should evaluate and decide if JAV has the ability to regain compliance with the continued listing standards by August 26, 2010.
Javelin Pharmaceuticals Inc.
applies innovative proprietary technologies to develop new drugs and improved formulations of existing drugs to target unmet and underserved medical needs in the pain management market. In April, 2010 the company reported it would terminate a merger agreement with Myriad Pharmaceuticals for a better deal with Hospira, but it failed due to the supply problem in UK.
Currently, JAV stock is having an uptrend and the traded volume exceeds 2 million shares. Javelin keeps seeking licensing partners for the company’s late stage development product candidates and publishes all the relevant information on its official website.