Pozen shares were down about 15 percent early Monday after the Chapel Hill company announced that it has terminated its licensing agreement with the French pharmaceutical company Sanofi.
The agreement, signed in Sept. 2013, could have earned Pozen as much as $35 million in payments. The deal gave Sanofi the exclusive rights to commercialize versions of Pozen’s experimental cardiovascular treatment – the drugs PA32540 and PA8140 – which is an alternative to aspirin for treating heart disease and stroke patients.
As of Nov. 29, all licenses granted to Sanofi were terminated and the rights of the products reverted to Pozen.
The U.S. Food and Drug Administration is now reviewing a new drug application for PA32540 and PA8140, which has been given the proposed trademark name of Yosprala. The agency is expected to rule on the application on Dec. 30.
Pozen CEO John Plachetka said in a statement that the company continues to evaluate its strategic option as it works with the FDA ahead of a ruling on its application.
“Given that the target population for YOSPRALA could exceed 20 million patients in the US, we will be fully engaged in the near term evaluating strategic options available to the company,” Plachetka said.
Pozen’s announcement didn’t say why its agreement with Sanofi was being terminated. The companies did say the decision was mutual.
Pozen shares, which opened Monday at $8.89, was down $1.43 in late-morning trading.