Javelin Pharmaceuticals, Inc. Reports Second Quarter 2009 Results and Corporate Highlights

Javelin Pharmaceuticals, Inc. (NYSE Amex: JAV), a leading developer of novel products for pain management, today reported its unaudited financial results for the second quarter ended June 30, 2009. The Company's milestones in the second quarter included the following:

Announced new findings from recent Phase I pharmacokinetic (PK) study of Dyloject® , which showed Dyloject was well tolerated in high risk patients with impaired renal and hepatic function
Successful completion of its open-label, multi-day, observational Phase III safety study of Dyloject in the United States, keeping the product candidate on track to file an NDA
On track to file a high quality NDA for Dyloject this Fall
Significant reduction in Q2 expenses from Q1 2009 as the majority of the current clinical programs at the Company have been completed

Financial Performance

The Company ended the second quarter of 2009 with $8.9 million in cash, cash equivalents, and long term marketable securities available-for-sale.

For the three and six months ended June 30, 2009, total revenues were $0.3 million and $2.4 million, compared to $ 0.2 million, for each of the respective, three and six months period in the prior year.

Javelin’s net loss decreased to approximately $7.9 million, or $0.13 per share, for the three months ended June 30, 2009, from approximately $9.1 million, or $0.16 per share, for the comparable period in 2008. For the six months ended June 30, 2009, the net loss was approximately $22.7 million, or $0.38 per share, up from $18.8 million, or $0.36 per share, for the similar period in 2008.

Javelin incurred approximately $8.2 million in total operating expenses in the second quarter of 2009 compared to $9.5 million for the same period a year ago. For the six months ended June 30, 2009 and 2008, Javelin’s total operating expenses were $25.1 million and $19.7 million, respectively.

For both three months ended June 30, 2009, and 2008 our cost of revenues was approximately $0.1 million. For the six months ended June 30, 2009, cost of revenues was approximately $2.0 million compared to $0.2 million in the similar period in 2008.

Research and development expenses increased from approximately $4.5 million for the three months ended June 30, 2008 to $5.3 million for the three months ended June 30, 2009. Total research and development expenses increased from $10.2 million for the six months ended June 30, 2008 to $17.2 million for the six months ended June 30, 2009.

Selling, general and administrative expenses for the three months ended June 30, 2009 were $2.7 million as compared to $4.8 million for the three months ended June 30, 2008, and $5.8 million for the six months ended June 30, 2009 as compared to $9.2 million for the similar period in 2008.

JAVELIN PHARMACEUTICALS, INC
(A Development Stage Enterprise)
CONDENSED CONSOLIDATED BALANCE SHEETS

			(Unaudited)
			June 30,			December 31,
			2009			2008
Assets
Current assets:
	Cash and cash equivalents		$	7,227,952		$	20,057,937
	Accounts receivable, product sales			-			470,288
	Inventory			740,729			1,847,904
	Prepaid expenses and other current assets			572,165			511,820
		Total current assets		8,540,846			22,887,949
Long term marketable securities available-for-sale				1,624,896			1,586,910
Fixed assets, at cost, net of accumulated depreciation				1,030,040			1,195,670
Intangible assets, net of accumulated amortization				3,186,142			3,480,248
Other assets				146,331			154,918
		Total assets	$	14,528,255		$	29,305,695

Liabilities and Stockholders' Equity (Deficit)
Current liabilities:
	Accounts payable and accrued expenses		$	7,974,192		$	8,119,006
	Deferred revenue, current			1,204,301			-
	Deferred lease liability			458,326			513,519
		Total current liabilities		9,636,819			8,632,525
Deferred revenue, noncurrent				5,318,996			-
		Total liabilities		14,955,815			8,632,525

Commitments and contingencies				-			-

Stockholders' Equity (Deficit)
Preferred stock, $0.001 par value, 5,000,000
	shares authorized; as of June 30, 2009 and
	December 31, 2008, none of which are outstanding			-			-

Common stock, $0.001 par value; 200,000,000 shares authorized
	as of June 30, 2009 and December 31, 2008; 60,675,016
	60,649,358 shares issued and outstanding as of
	June 30, 2009 and December 31, 2008, respectively			60,675			60,649
Additional paid-in capital				176,092,394			174,534,897
Other comprehensive income				63,456			10,383
Deficit accumulated during the development stage				(176,644,085	)		(153,932,759	)
		Total stockholders' equity (deficit)		(427,560	)		20,673,170
		Total liabilities and stockholders' equity (deficit)	$	14,528,255		$	29,305,695

JAVELIN PHARMACEUTICALS, INC
(A Development Stage Enterprise)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

			Three Months Ended						Six Months Ended
			June 30,						June 30,
			2009			2008			2009			2008
Revenues:
	Partner revenue		$	301,075		$	-		$	2,199,883		$	-
	Product revenue			-			179,509			188,172			245,302
		Total revenues		301,075			179,509			2,388,055			245,302
Costs and Expenses
	Cost of revenues			105,205			129,498			2,017,829			179,405
	Research and development			5,308,385			4,489,899			17,154,456			10,155,349
	Selling, general and administrative			2,738,442			4,760,242			5,784,745			9,236,513
	Depreciation and amortization			81,651			79,850			165,523			120,603
		Total costs and expenses		8,233,683			9,459,489			25,122,553			19,691,870
Operating loss				(7,932,608	)		(9,279,980	)		(22,734,498	)		(19,446,568	)
Other income (expense):
	Interest income			14,234			220,782			43,768			577,802
	Other income (expense)			(31,653	)		(514	)		(21,140	)		36,089
		Total other income (expense)		(17,419	)		220,268			22,628			613,891
		Loss before income tax provision		(7,950,027	)		(9,059,712	)		(22,711,870	)		(18,832,677	)
		Income tax provision		(544	)		-			(544	)		-
Net loss attributable to common stockholders			$	(7,949,483	)	$	(9,059,712	)	$	(22,711,326	)	$	(18,832,677	)

Net loss per share attributable to common
	stockholders:
		Basic and diluted	$	(0.13	)	$	(0.16	)	$	(0.38	)	$	(0.36	)
		Weighted average shares		60,430,494			55,057,493			60,426,428			51,924,001

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

Javelin Pharmaceuticals (JAV)