Cadence Pharmaceuticals Inc.

San Diego, Calif. • (858) 436-1400 • www.cadencepharm.com

Exchange and Ticker: Nasdaq: CADX

Filing Range: 6M shares @ $11 to $13

Offering Price: $9

Close on First Day: $9.40

Offering Size: $54.M

Shares Outstanding: 28M

Underwriter: Merrill Lynch & Co. Inc

Co-managers: Pacific Growth Equities Inc./JMP Securities

Company Counsel: Latham & Watkins

Manager Counsel: Heller Ehrman

Auditor: Ernst & Young LLP

Market Capitalization on 10/31/06: $273.2 M

Close price at current month end: $9.70

Company Description

The company operates as a specialty pharmaceutical drug discoverer. The company’s focus is on the development and commercialization of therapeutics used primarily in the hospital setting. The initial focus of Cadence Pharmaceuticals (f.k.a. Strata Pharmaceuticals) was on hospital-use anti-infectives. The business of the company was driven by in-licensing and acquisition of late-stage development compounds and commercial-stage drugs. The pharmaceutical industry is subject to intense competition and characterized by extensive research efforts and rapid technological progress. Competition in the industry occurs on a variety of fronts, including pharmaceutical and biotechnology companies that are developing these new product candidates, including but not limited to Anesiva Inc., CeNeS Pharmaceuticals, Cumberland Pharmaceuticals Inc., Durect Corp., Javelin Pharmaceuticals Inc., Pfizer Inc., SkyePharma Inc., St. Charles Pharmaceuticals, TheraQuest Biosciences and Xsira Pharmaceuticals Inc.

Venture Backers

Domain Associates, ProQuest Investments, Frazier Healthcare and Technology Ventures, Technology Partners, Versant Ventures, CDIB BioScience Venture Management, Bellevue Asset Management AG, Windamere Venture Partners, CDIB Venture Management.

Source: Thomson Financial