Pozen Beats Street Estimates, Cuts Losses; Will Seek Migraine Drug Approval
Posted November 1, 2006
CHAPEL HILL, N.C. — Pharmaceutical development firm
(NASDAQ: POZN) beat Wall Street estimates by 4 cents a share as it cut third-quarter losses to $4.1 million.
Analysts had forecast Pozen would lose 18 cents a share.
The news helped lift Pozen stock 13 cents to $16.39 in midday trading.
Pozen cut its losses from $4.7 million in the same quarter in 2005, increasing revenue to $3.4 million from $2.4 million a year ago. Pozens pain-drug development deal with AstraZeneca contributed to the jump in income. AstraZeneca is paying Pozen $40 million up front for the deal.
Expenses climbed to $7.9 million from $7.4 million in 2005 due largely to costs of non-cash, stocked-based compensation.
Pozens cash reserves also jumped to $66.6 million from $45.8 million at the end of 2005 due to the AstraZeneca deal.
Also on Tuesday, Pozen said it is preparing additional data from clinical trials for its proposed migraine drug Trexima to submit to the Food and Drug Administration this month. The FDA had declined to approve Trexima.
Pozen said the FDA is expected to respond within six months.