mchen@heraldsun.com; 419-6636
DURHAM — Pozen reported losses for the fourth quarter of 2009 as well as the annual total on Wednesday, but announced that higher royalty income is already under way and a potential milestone payment in April could boost its bottom line.
The Chapel Hill-based company reported a net loss of $5.8 million, or $0.19 per share on a diluted — which includes options — basis, for the fourth quarter of 2009, compared to a net loss of $4.1 million, or $0.14 per share on a diluted basis, for the fourth quarter of 2008.
For year end totals, Pozen reported a net loss of $6.9 million for 2009, compared to a $6.0 million loss for 2008.
Annual revenues totaled $32.2 million in 2009, compared with $66.1 million in 2008. The company said the decline in revenue was primarily the result of $23.4 million less development income and $10.0 million less in milestone payments in 2009.
However, the company could be getting some big payments in the next couple of months.
The company expects a response from the U.S. Food and Drug Administration on approval of Vimovo, a drug for treatment of chronic pains such as osteoarthritis and rheumatoid arthritis, by April 30.
Upon FDA approval, the company will earn a $20 million plus royalty payments from AstraZeneca, which will commercialize the drug.
“We’re doing what’s commonly referred to in many circles as watchful waiting,” John Plachetka, CEO, president and chairman of Pozen, said during the earnings call Thursday.
The company is also already seeing an increase in revenue for another product. The royalty rate for Treximet, the company’s migraine drug being commercialized by GlaxoSmithKline, increased from 5 percent to 18 percent at the start of the year.
“Even at a constant sales rate, our royalty income this year will more than triple,” Plachetka noted.
Treximet generated a total of $86.1 million for GSK in 2009 and $4.3 million in royalty revenue for Pozen.
The company had also trimmed costs for 2009, with operating expenses totaling $40.2 million, about 45.8 percent less than the $74.2 million total in 2008. The decrease in operating expenses was primarily due to a decline in development costs for Vimovo.
Pozen is continuing to develop its own commercialization of its products. The company had hired a former Johnson & Johnson executive last year to headline the effort, and hosted its first analyst and investor day at NASDAQ headquarters on Dec. 8 to highlight the PA franchise, the company’s “safer aspirin” line.
Pozen’s stock was down 10 cents per share Wednesday to close at $6.28.
