Javelin Pharmaceuticals, Inc, a leading developer of novel products for pain management, announced an agreement to expand its commercial supply relationship with Baxter Healthcare Corporation.

The new supply agreement relates to Dyloject, Javelin's proprietary injectable diclofenac product currently marketed in the United Kingdom and in the second of two pivotal trials in the United States, for acute post-operative pain. The expanded relationship provides additional manufacturing capacity for Dyloject, principally for distribution in the European Union, and builds on the existing manufacturing agreement executed between Javelin and Baxter for the United States.

"We are pleased to strengthen our relationship with Baxter. This expanded commercial supply agreement will provide increased capacity for Dyloject in Europe as we grow sales of the product in UK and prepare for the anticipated launch of the product in multiple European countries in the near future," said Martin Driscoll, Javelin's chief executive officer.

"I am pleased we have completed this multi-year expansion of our Dyloject supply agreement with Baxter, which has the potential to significantly improve Dyloject's gross margins, as the product's sales volume increases in the UK and additional approvals are gained across Europe," stated John Taylor, vice president of Business Development for Javelin. "Solidifying our supply chain for Dyloject should improve the Company's position in our on-going partnership discussions," said John.

Dyloject is an injectable NSAID with analgesic, anti-inflammatory and antipyretic activity. Diclofenac, the active ingredient in Dyloject, is a leading analgesic for the treatment of moderate-to-severe post surgical pain and has a demonstrated history of efficacy and safety since its initial approval in 1981.

With corporate headquarters in Cambridge, Massachusetts, 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.