Losses for Pozen Double In Second Quarter As Revenues Drop, Costs Increase
Posted — Updated, just one day after announcing a deal worth as much as $375 million, said Wednesday that its losses doubled in the second quarter of 2006.
Pozen (Nasdaq: POZN) lost $8.4 million, on 29 cents a share, compared to a $4.1 million loss in the same period in 2005.
Financial analysts had expected a 25-cent loss.
Pozen shares traded down 11 cents, to $10.33, in midday trading.
The company cited a drop in revenues, to $900,000 from $2 million, and a $3.4 million increase in expenses, to $9.7 million, as major reasons for the loss.
On Wednesday, Pozen announced a drug development deal with AstraZeneca that could be worth well over $300 million and includes a $40 million upfront payment from the international drug firm.
Based on the AstraZeneca deal, Pozen forecasts as much as $2 million in revenue from its new partner and $2-3 million overall in the third quarter.
Pozen also is moving ahead with plans to secure approval of the painkiller Trexima it is co-developing along with GlaxoSmithKline. The Food and Drug Administration told Pozen and GSK in June that more information was needed about safety. Pozen said on Monday that the information would be filed in the fourth quarter.
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