2006 was a tumultuous year for drug developer Adolor (NASDAQ:ADLR). After announcing mixed clinical trial results for its lead compound, Entereg, earlier in the year, Adolor then got smacked down by the Food and Drug Administration when it received a second approvable letter for the drug as a treatment for postoperative ileus in November.

Yesterday, Adolor announced its fourth-quarter and year-end financial results. It ended 2006 with $186 million in cash and investments, after burning through $52 million in the year. With clinical trials winding down, and the dissolution of its 35-person sales force in December, its burn rate should decline in 2007.

The good news for Adolor investors is that it plans on submitting a response to its latest approvable letter for the drug in the second quarter of this year. Also, more data should arrive in a few months from the Entereg safety study in opioid-induced bowel dysfunction, run by partner GlaxoSmithKline (NYSE:GSK). Adolor will update investors on the next steps for the drug in this indication later this quarter.

Shares of Adolor are getting tres cheap. It's sporting a market cap barely higher than $300 million, which is more than 50% supported by its cash and investments on hand. The higher level of cardiac incidences in the latest study 14 notwithstanding, its drug has been proven safe in multiple moderately sized clinical trials in thousands of patients. If Entereg can get approved, it will have a strong marketing partner in GlaxoSmithKline.

The end game is nearing for Entereg, with the study 14 data coming out in the next couple of months, so it won't be long until we know whether Adolor has a potential hit or miss on its hands.

GlaxoSmithKline is an Income Investor recommendation. You can find out why with a 30-day free trial.

Fool contributor Brian Lawler does not own shares of any company mentioned in this article. The Fool has a disclosure policy.