Javelin (JAV) Slipped On Merger Concerns

Hospira, Inc.

decided to extend its tender offer for Javelin Pharmaceuticals

due to concerns about Javelin's (

) business. As a result, Javelin (

) shares are trading sharply down today. JAV dropped more than 15% on a pretty high volume. Its average volume is 2M traded shares, and today, 8M shares have already been traded. Hospira (

) is worried because, Javelin's commercial partner in the United Kingdom had to recall JAV's pain medication, Dyloject. Hospira (

) agreed to loan Javelin (

) $2 million after the merger, and Javelin (

) will use legal actions against Hospira (

) in order to keep this deal alive. JAV has already filed the suit.