Javelin (JAV) Slipped On Merger Concerns
Hospira, Inc. (NYSE: HSP) decided to extend its tender offer for Javelin Pharmaceuticals (NYSE: JAV) due to concerns about Javelin's (JAV) business. As a result, Javelin (JAV) 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 (HSP) is worried because, Javelin's commercial partner in the United Kingdom had to recall JAV's pain medication, Dyloject.
Hospira (HSP) agreed to loan Javelin (JAV) $2 million after the merger, and Javelin (JAV) will use legal actions against Hospira (HSP) in order to keep this deal alive. JAV has already filed the suit.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.