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Pozen takes bigger 4Q loss as revenue falls

Wed, 03/03/2010 - 6:17am
The Associated Press

Drug developer Pozen Inc. posted a larger fourth-quarter loss Wednesday and shares slipped even though those losses were less than expected.

The company said it lost $5.8 million, or 18 cents per share, compared with $4.1 million, or 14 cents per share a year ago. Its revenue fell 70 percent, to $4.2 million from $14 million. In the latest quarter, all of Pozen's revenue came from license payments. A year ago, it reported $5.2 million in licensing revenue, along with $8.8 million in development revenue.

Analysts had expected a loss of 22 cents per share on revenue of $4.3 million, according to Thomson Reuters.

Pozen reported $3.1 million in revenue from amortized payments from AstraZeneca PLC. It also got $1.1 million in royalties from British drugmaker GlaxoSmithKline on sales of the migraine treatment Treximet. That compares to $4 million in amortized revenue and $1.1 million from Treximet a year ago.

The Food and Drug Administration is reviewing AstraZeneca's application on the drug Vimovo, a potential treatment for arthritis that was discovered by Pozen. Pozen said a response from the FDA is expected during the second quarter of 2010. It will get $20 million if Vimovo is approved, along with royalty payments on sales.

In the fourth quarter of 2009, the company cut its research and development spending by almost two-thirds, to $5.6 million from $15.3 million.

For the full year 2009, Pozen lost $6.9 million, or 23 cents per share. In 2008 it took a loss of $6 million, or 20 cents per share. Revenue decreased 51 percent, to $31.2 million from $66.1 million.

Pozen shares fell 9 cents to $6.29 in morning trading.

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