Pozen earns profit in Q2, plans additional staff cuts
08/07/2014 12:56 PM
08/07/2014 12:57 PM
Pozen reported a big increase in royalty revenue in the second quarter and said it is still on a path to be profitable for the year.
The company, which has reduced its staff to 15 employees in recent months, also said it would make further reductions and reduce costs “not required to support the ongoing business activities.”
The Chapel Hill drugmaker reported net income of $3 million, or 9 cents per share, compared to a loss of $4 million, or 13 cents per share, during the second quarter of 2013.
Pozen had revenue of $7.4 million in the quarter, up from $1.7 million during the same period last year. The bulk of the company’s revenue, $5.4 million, came from royalties for Vimovo, its arthritis pain reliever.
Pozen has altered its company strategy, and is no longer pursuing drug development opportunities that are not fully funded by a partner.
Pozen has partnered with the French pharmaceutical firm Sanofi to develop PA, its heart attack and stroke-prevention pill. The company received a $15 million upfront payment from Sanofi as part of its licensing deal.
Last month, Pozen resubmitted its new drug application for PA after the U.S. Food and Drug Administration said that inspection deficiencies were found during an inspection of a manufacturing facility that is an active ingredient supplier.
Pozen shares, which opened Thursday at $7.37, were flat in early afternoon trading.
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