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CAMBRIDGE, Mass., Mar 12, 2009 (BUSINESS WIRE) -- Javelin Pharmaceuticals, Inc. (NYSE - Amex: JAV) recently reported its audited financial results for the full year and quarter ending December 31, 2008.
Financial Highlights for The Year Ended December 31, 2008:
-- Ended the year with $21.6 million in cash, cash equivalents and long term investments.
-- Net loss increased to approximately $43.5 million, or $0.77 per share, for the 12 months ended December 31, 2008, from $31.0 million, or $0.68 per share, for the same period in 2007.
-- Net loss increased to approximately $13.8 million, or $0.23 per share, in the fourth quarter of 2008, from $9.7 million, or $0.20 per share, in the fourth quarter of 2007.
-- Reported non-cash stock based compensation expense for the year ended December 31, 2008 was approximately $3.3 million, or $0.06 per share impact on operations, in accordance with Statement of Financial Accounting Standard 123R, compared to $3.5 million, or $0.08 per share impact on operations for 2007.
-- On January 15, 2009, Javelin entered into an exclusive European marketing partnership for Dyloject(TM) with Therabel N.V., worth up to $71.0 million in upfront, sales and milestone payments.
Financial Performance for The Year Ended December 31, 2008:
For the year ended December 31, 2008, Javelin recorded approximately $1.1 million in product revenue. There were no product revenues in 2007. The company incurred approximately $45.2 million in operating expenses for the year ended December 31, 2008 compared to operating expenses of $32.9 million for the year ended December 31, 2007.
Costs of product revenues were approximately $0.8 million in 2008. Research and development expenses for the year ended December 31, 2008 were $26.8 million, compared to $19.0 million for the same period in 2007. Total research and development expenses increased by $7.8 million in 2008 compared to 2007 due primarily to advancements in our Phase 3 development programs for Dyloject and Ereska.
Selling, general and administrative expenses for the year ended December 31, 2008 were $17.2 million compared to $13.8 million for the same period in 2007. The $3.4 million increase was mainly due to increased sales and marketing expenses related to the launch of Dyloject in the UK.
Financial Performance for The Fourth Quarter Ended December 31, 2008:
For the quarter ended December 31, 2008, Javelin recorded approximately $0.5 million in product revenue. Javelin incurred approximately $14.1 million in operating expenses for the fourth quarter ending December 31, 2008, compared to $10.2 million for the same period in 2007.
Research and development expenses for the quarter ended December 31, 2008 were $9.8 million, compared to $5.7 million for the same period in 2007. Total research and development expenses increased $4.1 million during the quarter compared to the same period a year ago, primarily due to the advancement of our late stage product candidate development programs for Dyloject and Ereska.
Selling, general and administrative expenses were $3.8 million for the three months ended December 31, 2008 compared to $4.5 million for the same period in 2007. The decrease was mainly due to lower sales and marketing costs related to the launch of Dyloject in the UK.
Selected Financials
| JAVELIN PHARMACEUTICALS, INC | |||||||||
| (A Development Stage Enterprise) | |||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
| December 31, | December 31, | ||||||||
| 2008 | 2007 | ||||||||
| Assets | |||||||||
| Current Assets: | |||||||||
| Cash and cash equivalents | $ | 20,057,937 | $ | 15,931,243 | |||||
| Short term investments | - | 21,319,150 | |||||||
| Accounts receivable, product sales | 470,288 | - | |||||||
| Inventory | 1,847,904 | 116,143 | |||||||
| Prepaid expenses and other current assets | 511,820 | 1,289,809 | |||||||
| Total current assets | 22,887,949 | 38,656,345 | |||||||
| Long term investments | 1,586,910 | - | |||||||
| Fixed assets, at cost, net of accumulated depreciation | 1,195,670 | 545,195 | |||||||
| Intangible assets, net of accumulated amortization | 3,480,248 | 3,795,577 | |||||||
| Other assets | 154,918 | 154,498 | |||||||
| Total assets | $ | 29,305,695 | $ | 43,151,615 | |||||
| Liabilities and Stockholders' Equity | |||||||||
| Current liabilities: | |||||||||
| Accounts payable and accrued expenses | $ | 8,119,006 | $ | 8,156,788 | |||||
| Deferred lease liability | 513,519 | 484,141 | |||||||
| Total current liabilities | 8,632,525 | 8,640,929 | |||||||
| Commitments and contingencies | - | - | |||||||
| Stockholders' Equity | |||||||||
| Preferred stock, $0.001 par value, 5,000,000 | |||||||||
| shares authorized; as of December 31, 2008 and | |||||||||
| 2007, none of which are outstanding | - | - | |||||||
| Common stock, $0.001 par value; 200,000,000 shares authorized | |||||||||
| as of December 31, 2008 and 2007; 60,649,358 and | |||||||||
| 48,990,845 shares issued and outstanding as of | |||||||||
| December 31, 2008 and 2007, respectively | 60,649 | 48,990 | |||||||
| Additional paid-in capital | 174,534,897 | 144,922,785 | |||||||
| Other comprehensive income | 10,383 | 8,594 | |||||||
| Deficit accumulated during the development stage | (153,932,759 | ) | (110,469,683 | ) | |||||
| Total stockholders' equity | 20,673,170 | 34,510,686 | |||||||
| Total liabilities and stockholders' equity | $ | 29,305,695 | $ | 43,151,615 | |||||
| JAVELIN PHARMACEUTICALS, INC | |||||||||||||||||
| (A Development Stage Enterprise) | |||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Three Months Ended | Full Year Ended | ||||||||||||||||
| December 31, | December 31, | ||||||||||||||||
| 2008 | 2007 | 2008 | 2007 | ||||||||||||||
| Revenues | |||||||||||||||||
| Product revenue | $ | 490,261 | $ | - | $ | 1,101,613 | $ | - | |||||||||
| Total revenues | 490,261 | - | 1,101,613 | - | |||||||||||||
| Costs and expenses | |||||||||||||||||
| Cost of product revenue | 397,828 | - | 849,591 | - | |||||||||||||
| Research and development | 9,787,316 | 5,664,724 | 26,830,617 | 19,018,854 | |||||||||||||
| Selling, general and administrative | 3,819,359 | 4,526,906 | 17,219,518 | 13,810,772 | |||||||||||||
| Depreciation and amortization | 86,948 | 28,531 | 293,509 | 97,650 | |||||||||||||
| Total costs and expenses | 14,091,451 | 10,220,161 | 45,193,235 | 32,927,276 | |||||||||||||
| Operating loss | (13,601,190 | ) | (10,220,161 | ) | (44,091,622 | ) | (32,927,276 | ) | |||||||||
| Other income (expense) | |||||||||||||||||
| Interest expense | - | - | - | (699 | ) | ||||||||||||
| Interest income | 113,478 | 546,643 | 921,238 | 1,896,601 | |||||||||||||
| Other expense | (279,055 | ) | - | (276,241 | ) | - | |||||||||||
| Total other income (expense) | (165,577 | ) | 546,643 | 644,997 | 1,895,902 | ||||||||||||
| Loss before income tax provision | (13,766,767 | ) | (9,673,518 | ) | (43,446,625 | ) | (31,031,374 | ) | |||||||||
| Income tax provision | (6,924 | ) | - | 16,451 | - | ||||||||||||
| Net loss attributable to common stockholders | $ | (13,759,843 | ) | $ | (9,673,518 | ) | $ | (43,463,076 | ) | $ | (31,031,374 | ) | |||||
| Net loss per share attributable to common | |||||||||||||||||
| stockholders: | |||||||||||||||||
| Basic and diluted | $ | (0.23 | ) | $ | (0.20 | ) | $ | (0.77 | ) | $ | (0.68 | ) | |||||
| Weighted average shares | 60,402,537 | 48,661,078 | 56,184,146 | 45,462,653 | |||||||||||||
About Javelin Pharmaceuticals, Inc.
With corporate headquarters in Cambridge, MA, Javelin applies innovative proprietary technologies to develop new drugs and improved formulations of existing drugs to target unmet and underserved medical needs in the acute pain management market. The Company has one marketed drug in the UK and three drug candidates in US Phase 3 clinical development. For additional information about Javelin, please visit the Company's website at http://www.javelinpharmaceuticals.com.
Forward Looking Statement
This news release contains forward-looking statements. Such statements are valid only as of today, and we disclaim any obligation to update this information. These statements are subject to known and unknown risks and uncertainties that may cause actual future experience and results to differ materially from the statements made. These statements are based on our current beliefs and expectations as to such future outcomes. Drug discovery and development involve a high degree of risk. Factors that might cause such a material difference include, among others, uncertainties related to the ability to attract and retain partners for our technologies, the identification of lead compounds, the successful preclinical development thereof, the completion of clinical trials, the FDA review process and other governmental regulation, our ability to obtain working capital, our ability to successfully develop and commercialize drug candidates, and competition from other pharmaceutical companies.
JAV-E
SOURCE: Javelin Pharmaceuticals, Inc.
Javelin Pharmaceuticals, Inc.
Stephen J. Tulipano, CPA, 617-349-4500
Chief Financial Officer
stulipano@javelinpharma.com
or
Javelin Pharmaceuticals, Inc.
Investor Relations & Media
Rick Pierce, 617-349-4500
VP Investor Relations
rpierce@javelinpharmaceuticals.com
Copyright Business Wire 2009