In March 2006, we in-licensed the exclusive U.S. and Canadian rights to Acetavance™, an intravenous formulation of acetaminophen that is currently marketed in Europe for the treatment of acute pain and fever by Bristol-Myers Squibb Company, or BMS, under the brand name Perfalgan®. According to IMS data, since its introduction beginning in 2002, over 250 million doses of intravenous acetaminophen have been sold in Europe and it has become the market share leader among injectable analgesics.

We are developing Acetavance (Acetaminophen for injection) in the U.S. market for the treatment of acute pain. According to IMS, approximately 292 million units of injectable analgesics, typically used to treat pain, were sold in the United States in 2008. Opioids represent the majority of unit volume in the market but are associated with a variety of unwanted side effects including sedation, nausea, vomiting, constipation, cognitive impairment and respiratory depression. Ketorolac, a non-steroidal anti-inflammatory drug, or NSAID, is the only other injectable analgesic available in the U.S. for the treatment of acute pain. However, ketorolac carries strong warnings from the FDA for various side-effects, including an increased risk of bleeding - a particularly troubling side-effect in the surgical setting.

Acetaminophen was first available for sale in the U.S. in 1955 when it was introduced under the brand name Tylenol®. Acetaminophen is the most widely used drug for pain relief and the reduction of fever in the U.S. and is currently available in over 600 pharmaceutical products. Historically, poor stability in aqueous solutions and inadequate solubility of acetaminophen prevented the development of an intravenous dosage form. We believe that Acetavance is the only stable, pharmaceutically-acceptable intravenous formulation of acetaminophen.

Cadence Pharmaceuticals' products have not been approved by FDA, and Cadence Pharmaceuticals does not make any claims related to the safety, effectiveness, or other attributes of its products.

Pefalgan® is a registered trademark of Bristol-Myers Squibb Company

Tylenol® is a registered trademark of Johnson & Johnson