Shares of Javelin Pharmaceuticals lost a quarter of their value Monday after the company said its licensee for the pain treatment Dyloject has withdrawn all batches of the drug from the U.K. Therabel Pharma UK Ltd. yanked Dyloject after finding the presence of a "white particulate matter" in some of its vials.
(JAV) What's the matter with a little extra "matter," you ask?
Well, aside from safety questions and the ick factor, this unexplained "matter" matter could undermine a major merger. (Say that sentence three times fast and you may need a pain treatment yourself!)
(JAV) Javelin, you see, is the subject of an all-cash, $145 million tender offer, or $2.20 per share, from drug and medical device maker Hospira (HSP) (Stock Quote: HSP), which snatched the company from rival Myriad Pharmaceuticals (MYRX) in April with a better offer. After Monday's selloff, Javelin's market cap has been reduced to $80 million, and its shares now trade around $1.20 a share.
Javelin stranded Myriad at the altar last month. Now it is the one being sacrificed.