Pozen reported a second-quarter loss Monday due largely to costs related to its pending merger with Tribute Pharmaceuticals Canada.
The company had a net loss of $16.3 million, or 50 cents per share, compared with net income of $3 million, or 9 cents a share, during the same period last year.
Operating expenses surged from $9.1 million to $24.7 million. Pozen had revenue of $5.2 million in the quarter from its drug Vimovo, its arthritis pain reliever.
Pozen announced in June that it plans to reincorporate in Ireland under a new name after acquiring Tribute for $146 million. Following the merger, Pozen is changing its name to Aralez Pharmaceuticals. The deal is expected to close in the fourth quarter.
Pozen is shifting to become a specialty pharmaceutical company with a focus on cardiovascular treatments. Its most promising drug is Yosprala, an alternative to aspirin for treating heart disease and stroke patients.
The drug has not yet been approved by the U.S. Food and Drug Administration, but Pozen expects it to launch here next year.
Deerfield, a syndicate of health care investors, has agreed to invest $350 million to support the launch of Yosprala and to help finance future acquisitions.
“We remain very excited about the prospects for Aralez Pharmaceuticals and we believe the corporate platform and committed capital to fund growth opportunities at the close of the transaction will position us well for our next phase of growth,” Adrian Adams, Pozen’s CEO, said in a statement.
Adams is to become CEO of Aralez.
Pozen shares were down about 3 percent in early-morning trading Monday. The stock is up more than 25 percent this year.