Cadence Pharmaceuticals, Inc. (formerly Strata Pharmaceuticals, Inc.) is a biopharmaceutical company focused on in-licensing, developing and commercializing proprietary product candidates principally for use in the hospital setting. Since our inception in 2004, we have in-licensed rights to two Phase III product candidates, both of which have been studied in prior Phase III clinical trials conducted by our licensors.

We have in-licensed the exclusive U.S. and Canadian rights to Acetavance (acetaminophen for injection), which is currently marketed in Europe for the treatment of acute pain and fever by Bristol-Myers Squibb Company. We have also in-licensed the exclusive North American and European rights to Omigard™, a topical antimicrobial, for the prevention and treatment of device-related, surgical wound-related and burn-related infections.

We believe that the hospital setting is a concentrated, underserved market for pharmaceuticals and anticipate building our own, hospital-focused sales force as our product candidates approach potential U.S. Food and Drug Administration, or FDA, approval. According to data from IMS Health Inc., or IMS, an independent marketing research firm, approximately $28 billion was spent on promotional activities by the pharmaceutical industry in 2005. Of this amount, IMS estimates that only $1 billion was directed towards hospital-based physicians and directors of pharmacies. In contrast, U.S. hospitals and clinics accounted for approximately $54 billion or 21% of U.S. pharmaceutical sales in 2005, according to IMS. We believe the relative lack of promotional efforts directed toward the highly concentrated hospital marketplace makes it an underserved and compelling opportunity, especially for a biopharmaceutical company commercializing its products directly through its own dedicated sales force.