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Dutton Associates Announces Investment Opinion: A.P. Pharma Rated Strong Speculative Buy in Update Report by Dutton Associates

EL DORADO HILLS, Calif.--(BUSINESS WIRE)--Jan. 2, 2008--Dutton Associates updates its coverage of A.P. Pharma, Inc. (Nasdaq:APPA), reiterating its Strong Speculative Buy rating and establishing a 12-month price target of $3.00. The 10-page report by Dutton Associates senior analyst Stephen L. Handley is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, and Knobias and other leading financial portals. A.P. Pharma is a specialty pharmaceutical company dedicated to the development of ethical pharmaceuticals, utilizing its proprietary polymer-based drug delivery systems. The primary focus is on the development and commercialization of its bioerodible injectable and implantable systems under the trade name Biochronomer. Initial target areas of application for its drug delivery technology include anti-nausea, pain management, anti-inflammation and DNA/RNAI applications. APF530, the Company's lead compound which is in Phase III trials, is being developed for the prevention of acute and delayed chemotherapy-induced nausea and vomiting, known as CINV; there is an important identifiable need for APF530's therapeutic features.

About Dutton Associates

Dutton Associates is one of the largest independent investment research firms in the U.S. Its 27 senior analysts are primarily CFAs and have expertise in many industries. Dutton Associates provides continuing analyst coverage of 110 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.

The current cost of enrollment in our one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $85,000 from the Company for 11 Research Reports with coverage commencing on 12/5/03. The Firm does not accept any equity compensation. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.

CONTACT: Dutton Associates, LLC.
John M. Dutton, 916-941-8119

SOURCE: A.P. Pharma, Inc.