Javelin Pharmaceuticals (JAV) 8-K Javelin Pharmaceuticals, Inc. Reports Second Quarter 2008 Results and Corporate Highlights

Exhibit 99.1

Javelin Pharmaceuticals, Inc. Reports Second Quarter 2008 Results and Corporate Highlights

CAMBRIDGE, Mass., Aug 07, 2008 (BUSINESS WIRE) — Javelin Pharmaceuticals, Inc. (Amex: JAV), a leading developer of novel products for pain management, today reported its unaudited financial results for the second quarter ended June 30, 2008. The Company’s milestones in the second quarter included the following:

• Completed a $25.7 million net financing, thus finishing Q2 2008 with $44.6 million in cash

• Robust partnership discussions continue

• Dosed the first patient in our pivotal Phase 3 study for PMI-150

• Received issuance of European patent for PMI-150 extending protection into 2023

• Tripled the number of UK hospital formulary inclusions; approval rate greater than 90%

• Signed a European supply agreement with Baxter Healthcare for the production of Dyloject(R) serving to potentially increase future gross margins and significantly increasing our European manufacturing capacity

• Implemented organization and personnel changes to deliver more timely clinical and regulatory results and bolster organizational accountability

• Focused the organization on prioritizing cash expenditures and becoming more efficient with our use of capital

Martin J. Driscoll, Chief Executive Officer of Javelin comments, “I have made accountability to our shareholders an organizational priority. While there is much yet to accomplish, I am pleased with our second quarter performance. Changes in a number of business areas are beginning to pay off. These include organizational changes in our clinical and regulatory functions to expedite our clinical timelines. I am most pleased with the progress of our partnering discussions. We are also recognizing efficiencies in our use of capital as evidenced by our second quarter financial performance.”

Financial Performance

The Company ended the second quarter of 2008 with $44.6 million in cash, cash equivalents, and short term investments.

Dyloject revenue for the three and six months ended June 30, 2008 was $179,509 and $245,302, respectively. Javelin did not record any revenue during the same periods in 2007.

Net loss increased to approximately $9.1 million, or $0.16 per share, for the three months ended June 30, 2008, up from approximately $7.2 million, or $0.16 per share, for the comparable period in 2007. For the six months ended June 30, 2008, net loss was approximately $18.8 million or $0.36 per share, up from $13.1 million or $0.31 per share, for the comparable period in 2007.

Javelin incurred approximately $9.5 million in total operating expenses in the second quarter of 2008. In the comparable period in 2007, Javelin incurred $7.7 million in total operating expenses. For the six months ended June 30, 2008 and 2007, Javelin incurred $19.7 million and $13.8 million, respectively in total operating expenses.

For the three and six months ended June 30, 2008, our cost of product revenues were $129,498 and $179,409, respectively.

Research and development expenses decreased slightly from approximately $4.6 million for the three months ended June 30, 2007 to $4.5 million for the three months ended June 30, 2008. Total research and development expenses increased from approximately $8.0 million for the six months ended June 30, 2007 to $10.2 million for the six months ended, June 30, 2008.

Selling, general and administrative expenses for the three months ended June 30, 2008 were $4.8 million compared to $3.0 million for the second quarter of 2007, and $9.2 million for the six months ended June 30, 2008 compared to $5.8 million for the six months ended June 30, 2007.

Selected Financials

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

	(Unaudited)
	June 30,			December 31,
	2008			2007
Assets
Current Assets:
Cash and cash equivalents	$	41,627,954		$	15,931,243
Short term investments		2,975,000			21,319,150
Accounts receivable, product sales		158,190			—
Inventory		1,755,839			116,143
Prepaid expenses and other current assets		629,581			1,289,809
Total current assets		47,146,564			38,656,345
Fixed assets, at cost, net of accumulated depreciation		1,011,202			545,195
Intangible assets, net of accumulated amortization		3,683,393			3,795,577
Other assets		157,730			154,498
Total assets	$	51,998,889		$	43,151,615
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued expenses	$	7,778,693		$	8,156,788
Deferred lease liability		565,370			484,141
Total current liabilities		8,344,063			8,640,929
Commitments and contingencies		—			—
Stockholders’ Equity
Preferred stock, $0.001 par value, 5,000,000 shares authorized as of December 31, 2007 and December 31, 2006; none of which are outstanding		—			—
Common stock, $0.001 par value; 200,000,000 shares authorized as of June 30, 2008 and December 31, 2007; 60,620,473 and 40,409,421 shares issued and outstanding as of June 30, 2008 and December 31, 2007, respectively		60,620			48,990
Additional paid-in capital		172,917,825			144,922,785
Other comprehensive income (loss)		(21,259	)		8,594
Deficit accumulated during the development stage		(129,302,360	)		(110,469,683	)
Total stockholders’ equity		43,654,826			34,510,686
Total liabilities and stockholders’ equity	$	51,998,889		$	43,151,615

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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2008			2007			2008			2007
Revenues
Product revenue	$	179,509		$	—		$	245,302		$	—
Government grants and contracts		—			—			—			—
Total revenues		179,509			—			245,302			—
Costs and expenses
Cost of goods sold		129,498			—			179,405			—
Research and development		4,489,899			4,638,715			10,155,349			7,970,442
Selling, general and administrative		4,760,242			3,023,496			9,236,513			5,797,142
Depreciation and amortization		79,850			23,565			120,603			43,582
Total operating expenses		9,459,489			7,685,776			19,691,870			13,811,166
Operating loss		(9,279,980	)		(7,685,776	)		(19,446,568	)		(13,811,166	)
Other income (expense)
Interest expense		—			—			—			(699	)
Interest income		220,782			451,467			577,802			674,908
Other income (expense)		(514	)		—			36,089			—
Total other income (expense)		220,268			451,467			613,891			674,209
Net loss		(9,059,712	)		(7,234,309	)		(18,832,677	)		(13,136,957	)
Deemed dividend related to beneficial conversion feature of Series B convertible preferred stock		—			—			—

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2008			2007			2008			2007
Net loss attributable to common stockholders	$	(9,059,712	)	$	(7,234,309	)	$	(18,832,677	)	$	(13,136,957	)
Net loss per share attributable to common stockholders:
Basic and diluted	$	(0.16	)	$	(0.16	)	$	(0.36	)	$	(0.31	)
Weighted average shares		55,057,493			44,400,030			51,924,001			42,331,710

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 pain management market. The Company has three drug candidates in US Phase 3 clinical development. One of these US Phase 3 drug candidates, Dyloject(TM), has received Marketing Authorization Application (MAA) approval and favorable pricing in the UK, where it is now being sold. Previous clinical trials have demonstrated its safety and rapid onset of action. For additional information about Javelin, please visit the company’s website athttp://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@javelinpharmaceuticals.com
or
Investor Relations & Media
Rick Pierce, 617-349-4500
VP Investor Relations
rpierce@javelinpharmaceuticals.com

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