CHAPEL HILL, N.C.--(BUSINESS WIRE)--Sept. 21, 2006--POZEN Inc.
(NASDAQ:POZN), announced today the receipt of the $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 Anti-trust
Improvements Act making the agreement effective.
POZEN entered into the collaboration agreement with AstraZeneca on
August 1, 2006 for the co-development and commercialization of
proprietary fixed dose combinations of the proton pump inhibitor (PPI)
esomeprazole magnesium, with the non-steroidal anti-inflammatory drug
(NSAID) naproxen, in a single tablet. The products will be indicated
for the management of pain and inflammation associated with conditions
such as osteoarthritis and rheumatoid arthritis in patients who are at
risk for developing NSAID-associated gastric ulcers.
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.
As a result of having more detailed information regarding the
timing of activities under the collaboration agreement 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 to $4 million in the third quarter of 2006, including
revenue of $1 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 to $8.5 million, including $1.5
million of estimated non-cash stock-based compensation expense.
POZEN expects total revenue for the 2006 year to be in the range
of $14 to $16 million, including revenue of $5 to $7 million for work
performed under the AstraZeneca agreement. Total operating expenses
for the 2006 year are expected to be in the range of $36 to $38
million, which includes $6.5 million of estimated non-cash stock-based
compensation expense. POZEN anticipates its cash balance will be
approximately $60 million at the end of 2006.
POZEN is a pharmaceutical company committed to developing
therapeutic advancements for diseases with unmet medical needs where
it can improve efficacy, safety, and/or patient convenience. POZEN's
efforts are focused primarily on the development of pharmaceutical
products for the treatment of acute and chronic pain and other
pain-related conditions. POZEN has development and commercialization
alliances with GlaxoSmithKline and AstraZeneca. The company's common
stock is traded on The Nasdaq Stock Market under the symbol "POZN".
For detailed company information, including copies of this and other
press releases, see POZEN's website: www.pozen.com.
Statements included in this press release that are not historical
in nature are "forward-looking statements" within the meaning of the
"safe harbor" provisions of the Private Securities Litigation Reform
Act of 1995. You should be aware that our actual results could differ
materially from those contained in the forward-looking statements,
which are based on management's current expectations and are subject
to a number of risks and uncertainties, including, but not limited to,
our failure to successfully commercialize our product candidates;
costs and delays in the development and/or FDA approval of our product
candidates, including as a result of the need to conduct additional
studies, or the failure to obtain such approval of our product
candidates, including as a result of changes in regulatory standards
or the regulatory environment during the development period of any of
our product candidates; uncertainties in clinical trial results or the
timing of such trials, resulting in, among other things, an extension
in the period over which we recognize deferred revenue or our failure
to achieve milestones that would have provided us with revenue; our
inability to maintain or enter into, and the risks resulting from our
dependence upon, collaboration or contractual arrangements necessary
for the development, manufacture, commercialization, marketing, sales
and distribution of any products; competitive factors; our inability
to protect our patents or proprietary rights and obtain necessary
rights to third party patents and intellectual property to operate our
business; our inability to operate our business without infringing the
patents and proprietary rights of others; general economic conditions;
the failure of any products to gain market acceptance; our inability
to obtain any additional required financing; technological changes;
government regulation; changes in industry practice; and one-time
events, including those discussed herein and in our Quarterly Report
on Form 10-Q for the period ended June 30, 2006. We do not intend to
update any of these factors or to publicly announce the results of any
revisions to these forward-looking statements.
CONTACT: POZEN Inc.
Bill Hodges, Chief Financial Officer, 919-913-1030 or
Fran Barsky, Director, Investor Relations, 919-913-1044
SOURCE: POZEN Inc.