Pozen cuts loss 53%, attracts Zacks interest

Pozen, a North Carolina, USA-based drug developer, has posted a 53% reduction in loss, year-on-year, on increasing revenue, slightly ahead  of Zachs Investment analysts' forecasts, causing the latter to describe  the firm's shares as undervalued.

The firm's net loss was cut to $3.5 million, or $0.12 per share, versus  a loss of $7.4 million, or $0.25 per share. Sales were up 13% to $8.8  million, comprising $4.1 million from licensing and $4.7 million from  development revenue. R&D expenses were $8.0 million, down 39%. However,  as of March 31, the firm had $22.1 million in cash and cash equivalents,  down 15% on the end of last year.

Zacks had predicted a loss of $2.8 million, but suggests the drop may  have been due to legal fees incurred by in relation to Pozen's ongoing  battle over Par Pharmaceutical's Paragraph IV challenge to its patent  for the migraine drug Treximet. The analysts expect Pozen to post $200.0  million in turnover and earnings per share of $2.56 by 2013.