Pozen announced results for the fourth quarter and year ended December 31, 2014. Q4 total revenue of $9.9 million.
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This was resulting from $5.6 million of VIMOVO royalty, $4 million from the amortization of the $15 million upfront fee for the licensing of YOSPRALA, and $0.3 million deferred revenue recognized on the termination of the Cilag agreement.
For the fourth quarter of 2013, the company reported total revenue of $4.7 million, resulting from $1.7 million of VIMOVO royalty and $3.0 million of amortization of the upfront fee for licensing of YOSPRALA.
Operating expenses for the fourth quarter of 2014 totaled $3.1 million, as compared to $6.9 million for the comparable period in 2013. The decrease in operating expenses in the fourth quarter of 2014 was primarily a result of reduced staff, reduced non-cash compensation expense and lower YOSPRALA related costs.
The company reported net income of $7 million, or $0.21 per share on a diluted basis for the fourth quarter of 2014, compared to net loss of $2.2 million, or $0.07 loss per share, for the fourth quarter of 2013.
For the year ended 2014, Pozen reported total revenue of $32.4 million, resulting from $21.1 million of VIMOVO royalty, $11 million from the amortization of the $15.0 million upfront fee for the licensing of YOSPRALA, and $0.3 million related to the Cilag agreement termination.
For the year ended 2013, the company reported total revenue of $10.3 million, resulting from $6.3 million from VIMOVO royalty and $4 million from the amortization of the upfront fee for the licensing of YOSPRALA.
Operating expenses for the year ended 2014 totaled $15.8 million, as compared to $27.1 million for the comparable period in 2013. The decrease in operating expenses for the year ended 2014 was primarily a result of higher YOSPRALA related costs in 2013, including the YOSPRALA PDUFA fee, YOSPRALA pre-commercialization costs, and the one-time licensing costs as compared to a strategic reduction of activities in 2014.
The company recorded other income of $3.1 million in 2014, which consisted of a $2.7 million valuation gain on a warrant to purchase Pernix Therapeutics Holdings, Inc. common stock at an exercise price of $4.28 received as part of the Pernix acquisition of the rights to Treximet and $0.4 million related to the disgorgement of short-swing profits arising from trades by a Pozen shareholder under Section 16(b) of the Securities Exchange Act of 1934.
The company reported net income of $19.7 million, or $0.60 per share on a diluted basis for the year ended 2014, compared to a net loss of $16.7 million, or $0.55 loss per share, for the year ended 2013. The company has net operating loss carry forwards for tax purposes and does not expect any tax expense in 2014. ■