New migraine drug sales, GSK payments lift Pozen to profitability

Chapel Hill, N.C. — Pozen (Nasdaq: POZN) is in the black – at least temporarily.

The pharmaceutical firm reported a second-quarter profit of $13.3 million, or 43 cents per share, on Tuesday before the markets opened. The profit met Wall Street analysts' expectations as polled by Thomson Reuters news service.

Milestone payments of $20 million from Pozen partner GlaxoSmithKline (NYSE: GSK) for development of the recently approved migraine drug Treximet pushed Pozen to profitability. A year ago, Pozen reported a loss of $3.8 million, or 13 cents per share, for the second quarter.

Pozen also received some $800,000 in royalties for Treximet, which Pozen and GSK developed. GSK put Treximet on sale in May after the drug received U.S. Food and Drug Administration approval.

Treximet received 3.7 percent of new migraine prescriptions in June, Pozen reported. The company, citing industry research, also said Treximet “has already overtaken the three smallest” competitors in the same drug category.

Pozen generated $33.1 million in revenue, up from $11.9 million a year ago.

Expenses also increased, reaching $20.3 million with development costs of a new drug sparking the increase. In 2007’s second quarter, Pozen spent $16.5 million.

Looking ahead for the remainder on 2008, Pozen stuck with a revenue forecast of between $62 million and $68 million with expenses targeted at between $67 million and $71 million.