Pozen gets $40 million payment from AstraZeneca, revises outlook

By Elaine Rigoli

Tampa, Fla., Sept. 21 - Pozen, Inc. received a $40 million initial upfront payment from AstraZeneca in connection with the exclusive global collaboration agreement between the two companies.

The previously announced collaboration with AstraZeneca has cleared the waiting period required under the Hart-Scott-Rodino Antitrust Improvements Act, making the agreement effective.

The Chapel Hill, N.C.-based pharmaceutical company entered into the collaboration with AstraZeneca Aug. 1 for the co-development and commercialization of proprietary fixed-dose combinations of the proton pump inhibitor esomeprazole magnesium, with the non-steroidal anti-inflammatory drug naproxen, in a single tablet.

In addition to the $40 million upfront payment, Pozen is eligible to receive up to $160 million for certain development and regulatory milestones and $175 million in potential sales performance milestones, if certain thresholds are achieved.

In addition, royalties will be paid on net sales on a tiered royalty structure that ranges from mid-single digits to mid-teens, according to a news release.

Outlook revision

As a result of having more detailed information regarding the timing of activities under the collaboration with AstraZeneca, Pozen is revising its financial guidance for the third quarter and the 2006 year.

Pozen expects total revenue to be in the range of $3 million to $4 million in the third quarter of 2006, including revenue of $1 million to $2 million for work performed under the AstraZeneca agreement.

Total operating expenses for the third quarter of 2006 are expected to be in the range of $7.5 million to $8.5 million, including $1.5 million of estimated non-cash stock-based compensation expense, the release said.

Pozen said it expects total revenue for the 2006 year to be in the range of $14 million to $16 million, including revenue of $5 million to $7 million for work performed under the AstraZeneca agreement.

Total operating expenses for 2006 are expected to be in the range of $36 million to $38 million, which includes $6.5 million of estimated non-cash stock-based compensation expense.

Pozen said it anticipates a cash balance of about $60 million at the end of 2006.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.