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Press Release

POZEN Reports Third Quarter 2002 Results

CHAPEL HILL, N.C., Oct 31, 2002 (BUSINESS WIRE) -- POZEN Inc. (Nasdaq: POZN), a pharmaceutical development company with a portfolio of product candidates for the treatment of migraine, today announced results for the third quarter and nine months ended September 30, 2002.

Third-Quarter Results
POZEN is a development-stage company that did not record revenues for the third quarter of 2002 or 2001.

For the third quarter of 2002, the company reported operating expenses, excluding the non-cash amortization of deferred compensation, of $4.8 million compared to $4.7 million in the third quarter of 2001. The non-cash amortization of deferred compensation in connection with employee stock option grants was $717,000 and $785,000 for the 2002 and 2001 three-month periods, respectively.

POZEN's net loss attributable to common stockholders was $5.2 million, or $0.19 per common share, for the quarter ended September 30, 2002 compared to $4.8 million, or $0.17 per common share, for the 2001 quarter. At September 30, 2002, the company had $55.7 million in cash and cash equivalents.

Nine-Month Results
POZEN did not record revenues for the nine months ended September 30, 2002 or during 2001.

For the first nine months of 2002, the company reported operating expenses, excluding the non-cash amortization of deferred compensation, of $17.5 million compared to $14.3 million for the 2001 nine-month period. The non-cash amortization of deferred compensation in connection with employee stock option grants was $2.2 million and $2.4 million for the 2002 and 2001 nine-month periods, respectively. The increase in operating expenses was due primarily to increased costs associated with the development of MT 300 and MT 400, offset by a decrease in development costs for MT 100 and the termination of all development activities for MT 500.

POZEN's net loss attributable to common stockholders was $18.9 million, or $0.67 per common share, for the nine months ended September 30, 2002 compared with $13.7 million, or $0.49 per common share, for the 2001 nine-month period.

Business Highlights
POZEN announced in early October the submission of a Marketing Authorization Application in the United Kingdom for MT 100, the company's oral, first-line treatment for migraine. Once approved in the U.K., POZEN will seek approval in other European markets based on the U.K. marketing authorization. There are an estimated 37 million migraine sufferers in the five major European markets according to a Datamonitor report published in May 2001.

MT 100 has shown consistent effectiveness in treating migraine throughout all Phase III clinical trials. Results from a Phase IIIb study released in August showed that MT 100 provided statistically superior sustained pain relief to placebo in patients with an intolerance to a triptan or with cardiovascular risk factors that would warrant cautious use of a triptan. In addition, results from a Phase III study released in September showed that MT 100 was well tolerated in a 12-month safety study involving more than 1,000 migraine patients.

POZEN announced in early October the completion of its second Phase III trial for MT 300, the company's injectable product candidate for the treatment of severe migraine. A statistically significantly greater percentage of MT 300-treated patients had sustained pain relief and pain relief at two hours than patients treated with placebo. There was no statistically significant difference between MT 300 and placebo in the relief of the secondary symptoms of migraine - nausea, and sensitivity to light and sound - over the two-hour post-dose period, the analysis specified in the study protocol. However, a sustained benefit analysis showed that a statistically significantly greater number of patients treated with MT 300 had sustained relief of sensitivity to light and sound than patients treated with placebo while the difference from placebo on sustained relief of nausea was marginally statistically significant.

POZEN is completing formulation development work and manufacture of clinical trial supplies of MT 400, the company's next generation triptan therapy. Launch of Phase III trials for MT 400 is planned for the first half of 2003.

"The submission of our first marketing authorization application represents a major milestone for POZEN and MT 100. If approved, we believe MT 100 may represent a significant advance in the treatment of migraine and the best entry-level prescription therapy for migraine sufferers," said John R. Plachetka, Pharm.D., chairman, president and chief executive officer of POZEN.

Financial Guidance
POZEN expects operating expenses for the fourth quarter to be in the range of $3.5 million to $4.5 million, excluding non-cash deferred compensation.

Third-Quarter Conference Call
POZEN will hold a conference call to discuss third-quarter results and management's outlook at 11:00 a.m. Eastern time on Thursday, October 31, 2002. The call can be accessed live and will be available for replay over the Internet via www.pozen.com.

About POZEN
POZEN is a pharmaceutical development company committed to building a portfolio of products with significant commercial potential in select therapeutic areas. POZEN's initial focus is on developing products for migraine therapy, a global market expected to exceed $2.8 billion this year. The company's common stock is traded on The Nasdaq Stock Market under the symbol "POZN."

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 products; costs and delays in the development and FDA approval of our products; our inability to enter into or maintain, and the risks resulting from our dependence upon, collaboration or contractual arrangements necessary for the development, manufacture, commercialization, marketing, sales and distribution of our 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 our 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 quarterly period ended June 30, 2002 under "Management's Discussion and Analysis of Financial Condition and Results of Operations." We do not intend to update any of these factors or to publicly announce the results of any revisions to these forward-looking statements.

POZEN is on the Internet at www.pozen.com

                             POZEN Inc.
                        Statement of Operations
                              (Unaudited)
                       Three Months Ended        Nine Months Ended
                          September 30,            September 30,
                     ----------------------- -------------------------
                        2002        2001        2002         2001
                     ----------------------- -------------------------
Operating expenses:
   General and
    administrative  $ 1,454,558 $ 1,465,360 $  4,895,463 $  4,554,486
   Research and
    development       4,024,353   4,059,084   14,827,078   12,110,853
                     ----------- ----------- ------------ ------------
Total operating
 expenses             5,478,911   5,524,444   19,722,541   16,665,339
Interest income,
 net                    244,982     718,458      843,591    2,916,975
                     ----------- ----------- ------------ ------------
Net loss
 attributable to
 common
   stockholders     $(5,233,929)$(4,805,986)$(18,878,950)$(13,748,364)
                     =========== =========== ============ ============
Basic and diluted
 net loss per
 common
   share            $     (0.19)$     (0.17)$      (0.67)$      (0.49)
                     =========== =========== ============ ============
Shares used in
 computing basic
 and
   diluted net loss
    per common
    share            28,100,495  27,964,435   28,072,252   27,906,237
                     =========== =========== ============ ============
                              POZEN Inc.
                             Balance Sheet
                              (Unaudited)
                                           September 30,  December 31,
                                                2002          2001
                                             -----------   -----------
                   ASSETS
Current assets:
 Cash and cash equivalents                  $55,675,859   $73,958,724
 Prepaid expenses                                65,531        67,498
 Other current assets                             8,000         8,688
                                             -----------   -----------
    Total current assets                     55,749,390    74,034,910
Equipment, net of accumulated depreciation      442,999       109,014
                                             -----------   -----------
    Total assets                            $56,192,389   $74,143,924
                                             ===========   ===========
    LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
 Accounts payable                           $   259,638   $   194,138
 Accrued expenses                             1,798,816     3,328,881
                                             -----------   -----------
    Total current liabilities                 2,058,454     3,523,019
Total stockholders' equity                   54,133,935    70,620,905
                                             -----------   -----------
    Total liabilities and stockholders'
     equity                                 $56,192,389   $74,143,924
                                             ===========   ===========

CONTACT:
POZEN Inc.
Matt Czajkowski
Chief Financial Officer
919-913-1030
or
Lisa Barthelemy
Director, Investor Relations
919-913-1044